Texas Roadhouse (NASDAQ:TXRH – Get Free Report) released its quarterly earnings results on Thursday. The restaurant operator reported $1.85 earnings per share for the quarter, topping 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 for the quarter, compared to analysts’ expectations of $1.67 billion. During the same period in the previous year, the company earned $1.86 earnings per share. The firm’s revenue for the quarter was up 11.1% compared to the same quarter last year.
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 Stock Performance
TXRH traded down $0.33 during midday trading on Thursday, reaching $208.17. The company had a trading volume of 1,474,203 shares, compared to its average volume of 812,770. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.40 and a current ratio of 0.46. The stock has a market cap of $13.68 billion, a PE ratio of 33.25, a P/E/G ratio of 2.31 and a beta of 0.79. Texas Roadhouse has a 12-month low of $153.82 and a 12-month high of $213.26. The business has a 50-day moving average price of $186.99 and a two-hundred day moving average price of $178.70.
Wall Street Analyst Weigh In
Read Our Latest Stock Analysis on Texas Roadhouse
Insider Activity at Texas Roadhouse
In related news, Director Gregory N. Moore sold 1,250 shares of Texas Roadhouse stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $178.14, for a total value of $222,675.00. Following the sale, the director owned 30,900 shares of the company’s stock, valued at approximately $5,504,526. The trade was a 3.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Jane Grote Abell sold 339 shares of Texas Roadhouse stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $177.43, for a total transaction of $60,148.77. Following the completion of the sale, the director directly owned 2,161 shares in the company, valued at $383,426.23. This trade represents a 13.56% 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 worth $1,115,864 over the last 90 days. Corporate insiders own 0.50% of the company’s stock.
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in the company. NewEdge Advisors LLC raised its stake in Texas Roadhouse by 12.0% in the 1st quarter. NewEdge Advisors LLC now owns 2,423 shares of the restaurant operator’s stock valued at $404,000 after acquiring an additional 259 shares during the period. Focus Partners Wealth boosted 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 purchasing an additional 1,157 shares during the period. Geneos Wealth Management Inc. boosted 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 purchasing an additional 111 shares during the period. Sivia Capital Partners LLC bought a new position in Texas Roadhouse during the second quarter worth about $657,000. Finally, Marshall Wace LLP purchased a new position in shares of Texas Roadhouse in the second quarter worth about $1,936,000. Hedge funds and other institutional investors own 94.82% of the company’s stock.
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.
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