Texas Roadhouse (NASDAQ:TXRH) Releases Earnings Results, Beats Expectations By $0.07 EPS

Texas Roadhouse (NASDAQ:TXRH) issued its earnings results on Thursday. The restaurant operator reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.80 by $0.07, Zacks reports. The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.64 billion. Texas Roadhouse had a net margin of 6.90% and a return on equity of 27.88%. The company’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.70 earnings per share.

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

• Strong top-line and traffic — Q1 revenue topped $1.6B with same-store sales up 7.1% (traffic +4.5%) and diluted EPS of $1.87; early Q2 comps remain healthy (+6.5% in first five weeks).
• Commodity outlook improved — full‑year commodity inflation guidance trimmed to 6%–7% (Q2 still expected to peak near 7%–8%); management says beef is the main ongoing risk but they have greater visibility into the back half of 2026.
• Margin pressure persists — restaurant margin as a % of sales fell 36 bps to 16.3% and food & beverage costs rose 122 bps (driven by commodity inflation), partially offset by pricing and labor productivity gains.
• Strong cash and growth flexibility — $215M in cash, $259M cash from operations, unchanged ~ $400M capex guide, ~35 company openings expected (weighted to back half) plus international/franchise expansion and ongoing capital returns.

Texas Roadhouse Price Performance

Shares of TXRH traded up $19.37 during mid-day trading on Friday, reaching $177.30. The stock had a trading volume of 2,906,948 shares, compared to its average volume of 1,045,974. Texas Roadhouse has a 52-week low of $153.82 and a 52-week high of $199.99. The business’s fifty day moving average is $166.81 and its 200 day moving average is $172.64. The firm has a market cap of $11.69 billion, a price-to-earnings ratio of 29.11, a P/E/G ratio of 1.83 and a beta of 0.77.

Texas Roadhouse Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 2nd will be issued a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.7%. Texas Roadhouse’s dividend payout ratio is currently 49.26%.

Insider Transactions at Texas Roadhouse

In related news, President Regina A. Tobin sold 4,450 shares of the company’s stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $171.00, for a total value of $760,950.00. Following the completion of the sale, the president owned 13,778 shares of the company’s stock, valued at approximately $2,356,038. This represents a 24.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Hugh J. Carroll sold 988 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $170.96, for a total transaction of $168,908.48. Following the completion of the sale, the director directly owned 866 shares of the company’s stock, valued at $148,051.36. This represents a 53.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,988 shares of company stock valued at $2,218,144 in the last three months. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Texas Roadhouse

Hedge funds have recently modified their holdings of the company. Sivia Capital Partners LLC purchased a new position in Texas Roadhouse during the second quarter worth about $657,000. Lido Advisors LLC boosted its stake in Texas Roadhouse by 8.0% during the fourth quarter. Lido Advisors LLC now owns 1,594 shares of the restaurant operator’s stock worth $265,000 after buying an additional 118 shares during the period. iSAM Funds UK Ltd purchased a new position in Texas Roadhouse during the fourth quarter worth about $260,000. Compound Planning Inc. boosted its stake in Texas Roadhouse by 5.6% during the fourth quarter. Compound Planning Inc. now owns 1,408 shares of the restaurant operator’s stock worth $234,000 after buying an additional 75 shares during the period. Finally, Vident Advisory LLC boosted its stake in Texas Roadhouse by 7.4% during the fourth quarter. Vident Advisory LLC now owns 1,401 shares of the restaurant operator’s stock worth $233,000 after buying an additional 97 shares during the period. Hedge funds and other institutional investors own 94.82% of the company’s stock.

Texas Roadhouse News Roundup

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

• Positive Sentiment: Texas Roadhouse reported first-quarter EPS of $1.87, ahead of consensus estimates, while revenue rose 10.5% year over year to $1.63 billion, signaling continued demand for its restaurants.
• Positive Sentiment: The company raised its quarterly dividend to $0.75 per share, reinforcing management’s confidence in cash generation and giving income-focused investors a larger payout.
• Positive Sentiment: Several market headlines pointed to the stock surging after the earnings release, suggesting investors viewed the quarter as better than expected overall, despite a slight revenue miss versus estimates.
• Neutral Sentiment: Analysts and commentary were mixed on the report: earnings were strong, but revenue came in slightly below expectations, keeping some caution around how much upside is left after the post-earnings move.
• Neutral Sentiment: A Seeking Alpha piece on May 8 upgraded the stock, but described upside potential as only moderate, implying the shares may be fairly valued after the recent run-up. Texas Roadhouse: It Hasn’t Bottomed Out Yet, But Upside Potential Is Medium Well (Rating Upgrade)

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. KeyCorp reiterated a “sector weight” rating on shares of Texas Roadhouse in a research report on Friday, February 20th. Benchmark reiterated a “hold” rating on shares of Texas Roadhouse in a research report on Monday, February 23rd. Citigroup reduced their target price on shares of Texas Roadhouse from $176.00 to $174.00 and set a “neutral” rating for the company in a research report on Friday. Stephens increased their target price on shares of Texas Roadhouse from $168.00 to $180.00 and gave the company an “equal weight” rating in a research report on Friday, February 20th. Finally, Wells Fargo & Company reduced their target price on shares of Texas Roadhouse from $220.00 to $200.00 and set an “overweight” rating for the company in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and fourteen have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $193.90.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc is a casual dining restaurant chain specializing in hand‐cut steaks, fall‐off‐the‐bone ribs, chicken, seafood and house specialties. Each restaurant features a Western‐themed décor, open kitchens and a signature line dance presentation of fresh, made‐from‐scratch sides and breads. The company emphasizes an energetic dining experience, focusing on hospitality, value and a family‐friendly environment.

The concept was created in 1993 by founder Kent Taylor, who sought to combine high‐quality steaks with an approachable, community‐oriented atmosphere.