Texas Roadhouse (NASDAQ:TXRH) Announces Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• Q1 beat but mixed revenue: Texas Roadhouse reported EPS of $1.87, beating estimates by $0.07, with same‑store sales up 7.1% (traffic +4.5%) and revenue up 10.5% YoY to $1.63B, slightly below the $1.64B consensus.
• Margin pressure despite improved commodity outlook: Management trimmed full‑year commodity inflation guidance to 6%–7% (Q2 may peak near 7%–8%), but restaurant margin fell to 16.3% and food & beverage costs rose 122 bps, keeping margin headwinds in place.
• Strong cash flow and shareholder actions: The company reported ~$215M in cash and $259M cash from operations, maintained a ~ $400M capex plan with ~35 openings expected, and raised the quarterly dividend to $0.75 ($3.00 annualized, ~1.9% yield).

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) released its earnings results on Thursday. The restaurant operator reported $1.87 EPS for the quarter, topping the consensus estimate of $1.80 by $0.07, Zacks reports. Texas Roadhouse had a return on equity of 27.88% and a net margin of 6.90%.The firm had revenue of $1.63 billion during the quarter, compared to analysts' expectations of $1.64 billion. During the same period in the previous year, the firm posted $1.70 EPS. Texas Roadhouse's revenue for the quarter was up 10.5% on a year-over-year basis.

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

• Strong top-line and traffic — Q1 revenue topped $1.6B with same-store sales up 7.1% (traffic +4.5%) and diluted EPS of $1.87; early Q2 comps remain healthy (+6.5% in first five weeks).
• Commodity outlook improved — full‑year commodity inflation guidance trimmed to 6%–7% (Q2 still expected to peak near 7%–8%); management says beef is the main ongoing risk but they have greater visibility into the back half of 2026.
• Margin pressure persists — restaurant margin as a % of sales fell 36 bps to 16.3% and food & beverage costs rose 122 bps (driven by commodity inflation), partially offset by pricing and labor productivity gains.
• Strong cash and growth flexibility — $215M in cash, $259M cash from operations, unchanged ~ $400M capex guide, ~35 company openings expected (weighted to back half) plus international/franchise expansion and ongoing capital returns.

Texas Roadhouse Stock Performance

TXRH stock traded down $1.75 during midday trading on Thursday, reaching $157.93. 2,225,473 shares of the company were exchanged, compared to its average volume of 1,035,686. Texas Roadhouse has a 1-year low of $153.82 and a 1-year high of $199.99. The stock's 50-day simple moving average is $166.81 and its 200 day simple moving average is $172.64. The company has a market cap of $10.41 billion, a price-to-earnings ratio of 25.93, a price-to-earnings-growth ratio of 1.83 and a beta of 0.77.

Texas Roadhouse Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were paid a $0.75 dividend. This is an increase from Texas Roadhouse's previous quarterly dividend of $0.68. This represents a $3.00 annualized dividend and a yield of 1.9%. The ex-dividend date was Tuesday, March 17th. Texas Roadhouse's payout ratio is currently 49.26%.

Insiders Place Their Bets

In related news, Director Gregory N. Moore sold 1,700 shares of the stock in a transaction on Friday, March 6th. The shares were sold at an average price of $171.59, for a total value of $291,703.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Hernan E. Mujica sold 5,000 shares of Texas Roadhouse stock in a transaction on Friday, March 13th. The stock was sold at an average price of $170.00, for a total transaction of $850,000.00. Following the sale, the chief technology officer owned 15,552 shares in the company, valued at $2,643,840. This represents a 24.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 12,988 shares of company stock worth $2,218,144. 0.50% of the stock is currently owned by company insiders.

Institutional Trading of Texas Roadhouse

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Sivia Capital Partners LLC purchased a new position in shares of Texas Roadhouse during the second quarter worth about $657,000. Vident Advisory LLC grew its position in Texas Roadhouse by 7.4% in the 4th quarter. Vident Advisory LLC now owns 1,401 shares of the restaurant operator's stock valued at $233,000 after buying an additional 97 shares during the last quarter. Empowered Funds LLC acquired a new position in Texas Roadhouse in the 4th quarter valued at $91,000. Nicolet Advisory Services LLC acquired a new position in Texas Roadhouse in the 4th quarter valued at $185,000. Finally, Vise Technologies Inc. acquired a new stake in shares of Texas Roadhouse in the 4th quarter worth $241,000. Institutional investors and hedge funds own 94.82% of the company's stock.

Wall Street Analysts Forecast Growth

TXRH has been the subject of a number of analyst reports. Truist Financial lowered their price objective on Texas Roadhouse from $188.00 to $186.00 and set a "hold" rating for the company in a research report on Friday, February 20th. Citigroup decreased their price target on shares of Texas Roadhouse from $184.00 to $176.00 and set a "neutral" rating for the company in a research note on Friday, April 24th. BTIG Research reiterated a "buy" rating and set a $200.00 price target on shares of Texas Roadhouse in a report on Friday, February 20th. Benchmark restated a "hold" rating on shares of Texas Roadhouse in a report on Monday, February 23rd. Finally, Sanford C. Bernstein set a $185.00 price objective on shares of Texas Roadhouse in a research report on Wednesday, January 7th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat.com, Texas Roadhouse currently has an average rating of "Moderate Buy" and a consensus target price of $195.14.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.