Texas Roadhouse (NASDAQ:TXRH) Announces Earnings Results, Beats Expectations By $0.02 EPS

Texas Roadhouse (NASDAQ:TXRH) announced its earnings results on Thursday. The restaurant operator reported $1.85 earnings per share (EPS) for the quarter, beating the consensus estimate 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 analyst estimates of $1.67 billion. During the same period in the previous year, the business posted $1.86 earnings per share. Texas Roadhouse’s revenue for the quarter 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 Trading Down 0.2%

Shares of NASDAQ:TXRH traded down $0.33 during trading on Thursday, reaching $208.17. 1,474,203 shares of the company traded hands, compared to its average volume of 812,770. The company has a current ratio of 0.46, a quick ratio of 0.40 and a debt-to-equity ratio of 0.03. Texas Roadhouse has a 52-week low of $153.82 and a 52-week high of $213.26. The firm has a market capitalization of $13.68 billion, a price-to-earnings ratio of 33.25, a P/E/G ratio of 2.31 and a beta of 0.79. The business’s fifty day moving average is $186.99 and its 200-day moving average is $178.70.

Analyst Ratings Changes

A number of equities analysts have recently commented on TXRH shares. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $235.00 price target on shares of Texas Roadhouse in a report on Monday. Royal Bank Of Canada raised Texas Roadhouse from a “sector perform” rating to an “outperform” rating and increased their target price for the company from $180.00 to $210.00 in a research note on Friday, May 15th. Barclays dropped their price target on Texas Roadhouse from $188.00 to $175.00 and set an “equal weight” rating for the company in a research note on Friday, May 8th. Piper Sandler upped their price objective on Texas Roadhouse from $190.00 to $192.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Finally, UBS Group increased their price objective on Texas Roadhouse from $210.00 to $235.00 and gave the company a “buy” rating in a research report on Monday. Ten analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $198.80.

Insider Buying and Selling

In related news, Director Gregory N. Moore sold 1,250 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $178.14, for a total transaction of $222,675.00. Following the completion of the sale, the director directly owned 30,900 shares in the company, valued at $5,504,526. This represents a 3.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Christopher C. Colson sold 499 shares of the 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 sale, the insider directly owned 14,500 shares of the company’s stock, valued at $2,598,690. The trade was a 3.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 6,154 shares of company stock valued at $1,115,864 over the last quarter. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Texas Roadhouse

Several large investors have recently modified their holdings of the business. Measured Wealth Private Client Group LLC purchased a new position in Texas Roadhouse during the 3rd quarter valued at about $33,000. Garton & Associates Financial Advisors LLC bought a new stake in shares of Texas Roadhouse in the 4th quarter worth approximately $34,000. Los Angeles Capital Management LLC bought a new stake in shares of Texas Roadhouse in the 4th quarter worth approximately $48,000. Geneos Wealth Management Inc. increased its stake in shares of Texas Roadhouse by 36.0% during the first quarter. Geneos Wealth Management Inc. now owns 419 shares of the restaurant operator’s stock valued at $70,000 after buying an additional 111 shares during the period. Finally, Quarry LP purchased a new position in shares of Texas Roadhouse during the fourth quarter valued at approximately $73,000. 94.82% of the stock is owned by institutional investors.

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.