Texas Roadhouse (NASDAQ:TXRH) Issues Quarterly Earnings Results

Texas Roadhouse (NASDAQ:TXRH) announced its earnings results on Thursday. The restaurant operator reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.46 by ($0.10), FiscalAI reports. The business had revenue of $1.57 billion for the quarter, compared to analyst estimates of $1.58 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%. The company’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period last year, the firm earned $1.25 EPS.

Here are the key takeaways from Texas Roadhouse’s conference call:

• Third-quarter revenue grew 9.5% to $1.6 billion, with comparable sales up 4.3% on 0.7% traffic growth. Restaurant margin increased 30 basis points to 14.6%, and diluted EPS rose 8.6% to $1.36.
• Comps slowed to 1% in September after stronger July and August results; management attributed some weakness to a false social-media hoax. Fourth-quarter comps were up 1.5% through five weeks, with sequential improvement reported, though holiday shifts are expected to reduce quarterly comp growth by about 75 basis points.
• Management expects 2026 commodity inflation of about 5% and labor inflation of 3.5%–4%; for 2027, it forecasts commodity inflation of about 4% and labor inflation of about 3%. The company said lower food-cost pressure and sales leverage helped improve third-quarter restaurant margins.
• The company remains on track for about 35 restaurant openings in 2026 and plans about 35 more in 2027, while franchise partners are targeting roughly 10 openings in 2027. Development agreements in Vietnam and Japan add to international growth opportunities, although planned capital expenditures rise to about $440 million in 2026 and $425 million in 2027.

Texas Roadhouse Stock Down 2.4%

Shares of NASDAQ:TXRH opened at $191.79 on Friday. The firm’s 50 day moving average price is $173.05 and its 200 day moving average price is $179.11. The stock has a market cap of $12.59 billion, a price-to-earnings ratio of 30.69, a price-to-earnings-growth ratio of 2.13 and a beta of 0.81. Texas Roadhouse has a fifty-two week low of $153.82 and a fifty-two week high of $216.30. The company has a quick ratio of 0.39, a current ratio of 0.46 and a debt-to-equity ratio of 0.03.

Texas Roadhouse Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Tuesday, December 1st will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Tuesday, December 1st. Texas Roadhouse’s dividend payout ratio is presently 48.00%.

Insider Buying and Selling

In other Texas Roadhouse news, CEO Gerald Morgan sold 15,000 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $202.17, for a total transaction of $3,032,550.00. Following the completion of the transaction, the chief executive officer owned 80,970 shares in the company, valued at $16,369,704.90. The trade was a 15.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Donna Epps sold 820 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $206.56, for a total transaction of $169,379.20. Following the completion of the sale, the director directly owned 4,042 shares in the company, valued at approximately $834,915.52. This represents a 16.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 19,970 shares of company stock valued at $4,061,808 over the last ninety days. 0.50% of the stock is currently owned by corporate insiders.

Texas Roadhouse News Roundup

Here are the key news stories impacting Texas Roadhouse this week:

• Positive Sentiment: Comparable-store sales increased 4.3%, and revenue rose 9.5% year over year to $1.57 billion. The sales growth signals continued demand, although revenue was slightly below the $1.58 billion consensus. Texas Roadhouse: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: The company declared a quarterly dividend of $0.75 per share, offering a direct return to shareholders. Third-quarter results and dividend announcement
• Neutral Sentiment: Management characterized results as strong despite softer traffic. That may temper the sales-growth signal, as traffic trends remain an area for investors to monitor. Results despite softer traffic
• Negative Sentiment: Quarterly EPS was $1.36, below analysts’ estimates of roughly $1.46–$1.49. Although earnings were up from $1.25 a year earlier, the miss could weigh on the stock. Q3 earnings and revenue estimates

Analyst Upgrades and Downgrades

TXRH has been the topic of several recent research reports. Vertical Research upgraded Texas Roadhouse to a “buy” rating in a report on Wednesday, October 14th. Bank of America upped their price objective on shares of Texas Roadhouse from $225.00 to $227.00 and gave the stock a “buy” rating in a report on Friday. Barclays downgraded shares of Texas Roadhouse from an “equal weight” rating to a “cautious” rating in a report on Wednesday, October 14th. Citigroup cut their target price on Texas Roadhouse from $209.00 to $189.00 and set a “neutral” rating on the stock in a research report on Friday, October 23rd. Finally, TD Cowen upped their price target on Texas Roadhouse from $195.00 to $213.00 and gave the stock a “buy” rating in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $208.00.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc (NASDAQ: TXRH) operates full-service casual dining restaurants under the Texas Roadhouse, Bubba’s 33 and Jaggers brands. Its restaurants serve made-from-scratch meals centered on hand-cut steaks, ribs, chicken, seafood, burgers and other American-style dishes, along with freshly baked rolls and a selection of beverages.

Founded in 1993, Texas Roadhouse began with its first restaurant in Clarksville, Indiana. The company’s restaurant network includes company-owned and franchised locations across the United States, as well as international locations.