Texas Roadhouse (NASDAQ:TXRH) Posts Earnings Results

Texas Roadhouse (NASDAQ:TXRH) posted its quarterly earnings results on Thursday. The restaurant operator reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.83 by $0.02, FiscalAI reports. Texas Roadhouse had a net margin of 6.85% and a return on equity of 27.86%. The business had revenue of $1.68 billion during the quarter, compared to analysts’ expectations of $1.67 billion. During the same quarter last year, the company posted $1.86 earnings per share. The business’s quarterly revenue was up 11.1% on a year-over-year basis.

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

• Strong sales momentum continued, with second-quarter comparable sales up 6.2% on 3% traffic growth, while average weekly sales exceeded $175,000 for the first time. Early third-quarter comparable sales were also up 6.2%.
• Management lowered its full-year 2026 commodity inflation outlook to approximately 5% from 6%-7%, citing lower sirloin prices and expected third-quarter inflation of 2%-3%.
• The company remains confident in its long-term expansion opportunity, targeting approximately 35 company-owned openings in 2026, including about 20 Texas Roadhouse locations, at least 10 Bubba’s 33 restaurants, and four Jaggers units.
• Higher beef costs pressured profitability: restaurant margin declined 66 basis points to 16.4%, food and beverage costs rose 136 basis points, and diluted EPS fell 0.7% to $1.85 despite 11.1% revenue growth.
• Management expects holiday calendar shifts to reduce fourth-quarter same-store sales growth by approximately 75 basis points, while tight beef and cattle supply remains a risk even as near-term commodity inflation improves.

Texas Roadhouse Price Performance

Shares of Texas Roadhouse stock traded down $0.04 on Friday, hitting $208.12. The company’s stock had a trading volume of 458,896 shares, compared to its average volume of 1,058,979. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.40 and a current ratio of 0.46. Texas Roadhouse has a 1 year low of $153.82 and a 1 year high of $213.26. The firm has a fifty day moving average price of $186.99 and a 200-day moving average price of $178.70. The company has a market capitalization of $13.68 billion, a price-to-earnings ratio of 33.25, a price-to-earnings-growth ratio of 2.31 and a beta of 0.79.

Texas Roadhouse Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.75 per share. The ex-dividend date is Tuesday, September 1st. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.4%. Texas Roadhouse’s dividend payout ratio (DPR) is 47.92%.

Insider Activity at Texas Roadhouse

In other news, insider Lloyd Paul Marshall sold 1,000 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $178.34, for a total transaction of $178,340.00. Following the transaction, the insider owned 10,326 shares in the company, valued at $1,841,538.84. This trade represents a 8.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Christopher C. Colson sold 499 shares of Texas Roadhouse stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $179.22, for a total transaction of $89,430.78. Following the completion of the sale, the insider directly owned 14,500 shares in the company, valued at $2,598,690. This represents a 3.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,154 shares of company stock valued at $1,115,864 in the last ninety days. 0.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Texas Roadhouse

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. &PARTNERS raised its holdings in Texas Roadhouse by 3.5% in the fourth quarter. &PARTNERS now owns 1,820 shares of the restaurant operator’s stock valued at $302,000 after acquiring an additional 61 shares in the last quarter. Compound Planning Inc. grew its holdings in Texas Roadhouse by 5.6% during the 4th quarter. Compound Planning Inc. now owns 1,408 shares of the restaurant operator’s stock worth $234,000 after acquiring an additional 75 shares in the last quarter. NewEdge Advisors LLC grew its holdings in Texas Roadhouse by 3.1% during the 2nd quarter. NewEdge Advisors LLC now owns 2,499 shares of the restaurant operator’s stock worth $468,000 after acquiring an additional 76 shares in the last quarter. Wilmington Savings Fund Society FSB increased its position in shares of Texas Roadhouse by 3.6% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 2,361 shares of the restaurant operator’s stock worth $392,000 after purchasing an additional 81 shares during the last quarter. Finally, O Shaughnessy Asset Management LLC raised its stake in shares of Texas Roadhouse by 1.3% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 6,715 shares of the restaurant operator’s stock valued at $1,115,000 after purchasing an additional 85 shares in the last quarter. 94.82% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. TD Cowen upped their target price on Texas Roadhouse from $205.00 to $230.00 and gave the company a “buy” rating in a research report on Friday. Barclays lowered their price target on Texas Roadhouse from $188.00 to $175.00 and set an “equal weight” rating for the company in a research report on Friday, May 8th. Royal Bank Of Canada reiterated an “outperform” rating and set a $235.00 price target on shares of Texas Roadhouse in a research note on Friday. Guggenheim reissued a “buy” rating and issued a $210.00 price objective on shares of Texas Roadhouse in a report on Monday, May 18th. Finally, Wall Street Zen upgraded Texas Roadhouse from a “sell” rating to a “hold” rating in a research note on Sunday, May 10th. Ten investment analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $205.52.

Key Headlines Impacting Texas Roadhouse

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

• Positive Sentiment: Analysts raised price targets: TD Cowen lifted its target from $205 to $230 and upgraded TXRH to “buy,” while BTIG Research raised its target from $200 to $220 and maintained a “buy” rating. The revisions imply additional upside from recent trading levels. Analysts Raise Their Forecasts on Texas Roadhouse After Strong Q2 Results
• Positive Sentiment: Second-quarter revenue exceeded expectations: Texas Roadhouse reported $1.68 billion in revenue, ahead of the $1.67 billion consensus estimate and up 11.1% year over year. Quarterly EPS of $1.85 also topped the company-reported consensus estimate of $1.83, with increased sales and restaurant traffic helping support the results. Texas Roadhouse Announces Second Quarter 2026 Results
• Positive Sentiment: Dividend provides additional shareholder support: The company declared a quarterly dividend of $0.75 per share, payable September 29 to investors of record September 1. The annualized yield is approximately 1.4%.
• Neutral Sentiment: Analyst views remain mixed: Stephens raised its price target from $180 to $205 but kept an “equal weight” rating, with its new target slightly below recent trading levels. This signals that some analysts believe the strong performance is already reflected in the stock price. Stephens Raises Texas Roadhouse Price Target
• Negative Sentiment: Profit growth was modest: EPS declined from $1.86 in the year-ago quarter to $1.85. Zacks also noted that the result was below its more conservative $1.90 consensus estimate, while TXRH trades at a relatively elevated price-to-earnings ratio of about 33.

About Texas Roadhouse

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.