TXRH's 2023 Corporate Sustainability Report asserts: "We believe that diversity, equity, and inclusion (DE&I) are vital parts of our culture and what truly makes us legendary. We value and welcome employees of all walks of life to share their gifts, strengths, and voices while working in our restaurants and the Support Center, as we strive to reflect the communities we are proud to serve.”1



We also believe that employees of color and women can contribute to improved company performance. In 2020, a McKinsey study found that companies in the top quartile of gender diversity on executive teams were 25% more likely to experience above-average profitability than peer company diversity laggards, and that there is an even higher likelihood of outperformance among companies with more ethnically diverse executive teams.2



The EEO-1 Report breaks down a company's U.S. workforce by race, ethnicity and gender according to 10 employment categories, including senior management, defined to incorporate individuals within two reporting levels of the CEO.



TXRH discloses aggregate percentages for gender and separately, of racial/ethnic groups with no mention of job categories.3 EEO-I Report disclosure, however, would provide investors with more consistent information, in a decision-useful format, including:

Standardized, quantitative, and reliable data in categories as defined by the EEOC, that is comparable across companies and industries, enabling investors to assess the representation of employees of color and women at various levels of TXRH;



Specific data on senior management diversity; and



Particularized data that allows investors to assess the representation of specific racial and ethnic groups by gender, such as Black female employees, in a job category - and to make meaningful, year-over-year comparisons.



Disclosure of its EEO-1 Report is a cost-effective means for TXRH to demonstrate diversity performance. TXRH already collects the data and submits it to the EEOC. The proposal neither prevents nor discourages TXRH from disclosing any other information that management believes reflect its organizational structure or demonstrates its commitment to diversity and inclusion.



EEO-1 Report disclosure will bring TXRH into line with virtually all S&P 100 companies, and nearly 400 of the S&P 500 companies, which disclose or have committed to disclose their EEO-1 Report, including its acknowledged peers, Chipotle Mexican Grill, Inc. and Darden Restaurants, Inc.



Other shareholders have agreed. In 2021, New York City Retirement Systems' EEO-1 shareholder proposals at DuPont and Union Pacific received 84% and 86% support, respectively.



We ask shareholders to vote FOR this proposal.”