Texas Roadhouse (NASDAQ:TXRH) Issues Quarterly Earnings Results

Texas Roadhouse (NASDAQ:TXRH) posted its quarterly earnings data on Thursday. The restaurant operator reported $1.28 earnings per share for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.25), FiscalAI reports. Texas Roadhouse had a return on equity of 28.05% and a net margin of 6.90%.The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same period in the previous year, the business posted $1.73 earnings per share. The firm’s revenue was up 3.1% compared to the same quarter last year.

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

• Texas Roadhouse delivered strong top-line results in 2025 with revenue of nearly $5.9 billion, full?year same?store sales up 4.9% (including 2.8% traffic growth), and the milestone of a 60th consecutive quarter of comparable sales growth (ex?2020).
• Management flagged commodity inflation—driven almost entirely by beef—as the main headwind, guiding to approximately 7% commodity inflation for 2026 and warning restaurant margin percentage will be pressured, particularly in the first half of the year.
• Pricing will be modest and measured—3.1% menu pricing carried in Q1, then a 1.9% menu increase beginning in Q2 (implying about 3.6% menu pricing in Q2–Q3)—with an emphasis on maintaining the brand’s value proposition.
• Technology investments are advancing: the company completed rollout of the Digital Kitchen and upgraded guest management systems, and is expanding handheld server tablet testing to speed service, improve accuracy and support more to?go business.
• Strong free cash flow (over $730 million in 2025) underpins a consistent capital allocation plan—~$400 million capex guidance, franchise acquisitions, $150 million of buybacks, and a 10% quarterly dividend increase to $0.75.

Texas Roadhouse Stock Down 2.0%

Shares of TXRH opened at $178.82 on Friday. Texas Roadhouse has a 52-week low of $148.73 and a 52-week high of $199.99. The company has a 50-day simple moving average of $180.81 and a 200-day simple moving average of $173.54. The company has a market capitalization of $11.83 billion, a PE ratio of 29.36, a P/E/G ratio of 2.98 and a beta of 0.88.

Texas Roadhouse Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a $0.75 dividend. The ex-dividend date is Tuesday, March 17th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.7%. This is a boost from Texas Roadhouse’s previous quarterly dividend of $0.68. Texas Roadhouse’s payout ratio is 44.66%.

Insiders Place Their Bets

In related news, Director Hugh J. Carroll sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $167.27, for a total value of $167,270.00. Following the sale, the director owned 1,854 shares in the company, valued at $310,118.58. This represents a 35.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Gregory N. Moore sold 1,400 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $170.00, for a total value of $238,000.00. Following the completion of the transaction, the director directly owned 32,150 shares of the company’s stock, valued at $5,465,500. The trade was a 4.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 12,400 shares of company stock worth $2,320,920. 0.50% of the stock is owned by company insiders.

Institutional Trading of Texas Roadhouse

Large investors have recently bought and sold shares of the company. NewEdge Advisors LLC raised its stake in shares of Texas Roadhouse by 12.0% during the 1st quarter. NewEdge Advisors LLC now owns 2,423 shares of the restaurant operator’s stock worth $404,000 after buying an additional 259 shares during the last quarter. Focus Partners Wealth raised its position in Texas Roadhouse by 23.3% during the first quarter. Focus Partners Wealth now owns 6,124 shares of the restaurant operator’s stock worth $1,020,000 after acquiring an additional 1,157 shares during the last quarter. Geneos Wealth Management Inc. raised its position in Texas Roadhouse by 36.0% during the first quarter. Geneos Wealth Management Inc. now owns 419 shares of the restaurant operator’s stock worth $70,000 after acquiring an additional 111 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Texas Roadhouse in the second quarter valued at about $657,000. Finally, Marshall Wace LLP acquired a new stake in shares of Texas Roadhouse in the second quarter valued at approximately $1,936,000. Institutional investors and hedge funds own 94.82% of the company’s stock.

Wall Street Analysts Forecast Growth

TXRH has been the subject of several analyst reports. Morgan Stanley upped their price target on Texas Roadhouse from $205.00 to $208.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 20th. Citigroup dropped their price objective on shares of Texas Roadhouse from $190.00 to $184.00 and set a “neutral” rating on the stock in a research note on Friday. The Goldman Sachs Group upped their price objective on shares of Texas Roadhouse from $175.00 to $200.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 28th. Truist Financial reduced their target price on shares of Texas Roadhouse from $188.00 to $186.00 and set a “hold” rating for the company in a research note on Friday. Finally, Stephens boosted their price target on shares of Texas Roadhouse from $168.00 to $180.00 and gave the stock an “equal weight” rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $196.82.

Key Texas Roadhouse News

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

• Positive Sentiment: Company outlook/guide helped calm markets—management’s forward commentary and guidance were framed as constructive, which investors said helped offset the Q4 EPS miss. Investing.com: Outlook offsets earnings miss
• Positive Sentiment: Dividend increase: TXRH raised its quarterly dividend to $0.75 (a ~10.3% raise vs. prior $0.68), boosting yield and shareholder income — a supportive signal for income?oriented investors. GlobeNewswire: Q4 results & dividend
• Positive Sentiment: Some analysts remain bullish—BTIG reaffirmed a “buy” and a $200 target, signaling upside from some street participants despite the miss. Benzinga: BTIG reaffirms buy
• Positive Sentiment: Stephens raised its price target from $168 to $180 (equal weight), a modest vote of confidence that some firms see value after the quarter. Benzinga: Stephens raises target
• Neutral Sentiment: Explainers and context pieces are circulating that help frame the move—articles examining why TXRH didn’t plunge on a ~25% EPS decline offer context that may limit knee?jerk selling. Seeking Alpha: Why the stock didn’t drop
• Neutral Sentiment: Analyst/narrative pieces (Zacks/MarketBeat/Yahoo) are re?pricing the story—investors are parsing same?store trends, unit growth and DCF upside, producing mixed takes rather than a clear consensus. Zacks: Q4 metrics vs estimates
• Negative Sentiment: Q4 earnings and revenue missed consensus — TXRH reported $1.28 EPS vs. ~$1.53 expected and $1.48B revenue vs. ~$1.50B, a decline from prior year EPS; that shortfall is the primary driver of the intra?day weakness. MarketBeat: Q4 earnings report
• Negative Sentiment: Margin pressure from higher commodity costs — management flagged rising food/commodity inflation that pulled margins lower, a recurring risk for restaurant operators that can pressure near?term profitability. Seeking Alpha: Commodity costs hurt margins
• Negative Sentiment: Some analysts trimmed price targets and ratings (Citigroup lowered PT to $184/neutral; Truist trimmed to $186/hold), which can weigh on sentiment even if cuts are modest. Benzinga: Citi and Truist adjustments

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.