Texas Roadhouse (NASDAQ:TXRH) Releases Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Texas Roadhouse (NASDAQ:TXRH) released its quarterly earnings data on Thursday. The restaurant operator reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.46 by ($0.10), FiscalAI reports. The company had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.58 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%. The business’s revenue was up 9.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.25 earnings per share.

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

• Third-quarter revenue grew 9.5% to $1.6 billion, with comparable sales up 4.3% on 0.7% traffic growth. Restaurant margin increased 30 basis points to 14.6%, and diluted EPS rose 8.6% to $1.36.
• Comps slowed to 1% in September after stronger July and August results; management attributed some weakness to a false social-media hoax. Fourth-quarter comps were up 1.5% through five weeks, with sequential improvement reported, though holiday shifts are expected to reduce quarterly comp growth by about 75 basis points.
• Management expects 2026 commodity inflation of about 5% and labor inflation of 3.5%–4%; for 2027, it forecasts commodity inflation of about 4% and labor inflation of about 3%. The company said lower food-cost pressure and sales leverage helped improve third-quarter restaurant margins.
• The company remains on track for about 35 restaurant openings in 2026 and plans about 35 more in 2027, while franchise partners are targeting roughly 10 openings in 2027. Development agreements in Vietnam and Japan add to international growth opportunities, although planned capital expenditures rise to about $440 million in 2026 and $425 million in 2027.

Texas Roadhouse Stock Down 4.1%

Shares of Texas Roadhouse stock traded down $7.91 during midday trading on Friday, hitting $183.88. The company’s stock had a trading volume of 1,867,609 shares, compared to its average volume of 1,353,685. The firm has a market capitalization of $12.07 billion, a P/E ratio of 28.91, a PEG ratio of 2.03 and a beta of 0.81. The stock has a 50-day simple moving average of $172.73 and a 200-day simple moving average of $179.06. The company has a quick ratio of 0.39, a current ratio of 0.46 and a debt-to-equity ratio of 0.03. Texas Roadhouse has a 1-year low of $153.82 and a 1-year high of $216.30.

Texas Roadhouse Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Tuesday, December 1st will be issued a $0.75 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.6%. Texas Roadhouse’s dividend payout ratio is presently 48.00%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on TXRH shares. BMO Capital Markets reaffirmed a “market perform” rating and set a $190.00 target price on shares of Texas Roadhouse in a research report on Friday. Piper Sandler lifted their price target on Texas Roadhouse from $192.00 to $208.00 and gave the stock a “neutral” rating in a research note on Monday, August 10th. Royal Bank Of Canada cut their price objective on Texas Roadhouse from $220.00 to $215.00 and set an “outperform” rating on the stock in a report on Friday. Vertical Research raised shares of Texas Roadhouse to a “buy” rating in a research note on Wednesday, October 14th. Finally, Citigroup raised their target price on shares of Texas Roadhouse from $189.00 to $195.00 and gave the stock a “neutral” rating in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Texas Roadhouse presently has an average rating of “Moderate Buy” and a consensus price target of $208.04.

Insider Activity

In other Texas Roadhouse news, CEO Gerald L. Morgan sold 15,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $202.17, for a total transaction of $3,032,550.00. Following the completion of the sale, the chief executive officer directly owned 80,970 shares in the company, valued at approximately $16,369,704.90. This trade represents a 15.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hugh J. Carroll sold 650 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $203.99, for a total transaction of $132,593.50. Following the completion of the sale, the director directly owned 2,883 shares of the company’s stock, valued at $588,103.17. This trade represents a 18.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 19,970 shares of company stock valued at $4,061,808 in the last ninety days. Corporate insiders own 0.50% of the company’s stock.

Key Stories Impacting Texas Roadhouse

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

• Positive Sentiment: Same-store sales increased 4.3% and revenue rose 9.5% year over year to $1.57 billion, showing continued growth. The company also declared a quarterly dividend of $0.75 per share. Third-quarter results and dividend announcement
• Neutral Sentiment: Analyst views were mixed: Bank of America and TD Cowen raised their targets, while Wells Fargo, RBC, Morgan Stanley, and BMO lowered theirs. Several firms nevertheless maintained positive ratings, and Citigroup raised its target while keeping a neutral rating. Morgan Stanley rating and target update
• Negative Sentiment: Adjusted earnings were $1.36 per share, below analysts’ roughly $1.46–$1.49 estimates, while revenue of $1.57 billion also narrowly missed expectations. Reports pointed to softer traffic, tempering the otherwise solid year-over-year sales growth. Q3 earnings and revenue miss

Texas Roadhouse Company Profile

Texas Roadhouse, Inc (NASDAQ: TXRH) operates full-service casual dining restaurants under the Texas Roadhouse, Bubba’s 33 and Jaggers brands. Its restaurants serve made-from-scratch meals centered on hand-cut steaks, ribs, chicken, seafood, burgers and other American-style dishes, along with freshly baked rolls and a selection of beverages.

Founded in 1993, Texas Roadhouse began with its first restaurant in Clarksville, Indiana. The company’s restaurant network includes company-owned and franchised locations across the United States, as well as international locations.