Texas Roadhouse (NASDAQ:TXRH) Shares Gap Up on Earnings Beat

Key Points

• EPS beat and stock jump: Texas Roadhouse reported Q1 GAAP EPS of $1.87 versus $1.80 expected and revenue of $1.63B (up 10.5% YoY but ~$10M below estimates), sending the stock to gap up—opening near $171.95 from a $157.93 close and trading up into the $178 area.
• Dividend announced: The company declared a quarterly dividend of $0.75 per share (annualized $3.00) with an ex‑dividend date of June 2 and payable June 30, implying a yield of about 1.7% and a payout ratio near 49%.
• Operational strength contrasts with cautious sentiment: ROE (~27.9%) and net margin (~6.9%) look solid, but analysts' consensus is a "Hold" with an average target of $194.52, and insiders have recently sold shares.

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $157.93, but opened at $171.95. Texas Roadhouse shares last traded at $178.1510, with a volume of 412,531 shares.

The restaurant operator reported $1.87 EPS for the quarter, beating analysts' consensus estimates of $1.80 by $0.07. The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.64 billion. Texas Roadhouse had a return on equity of 27.88% and a net margin of 6.90%.Texas Roadhouse's quarterly revenue was up 10.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.70 EPS.

Texas Roadhouse Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 2nd will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Tuesday, June 2nd. Texas Roadhouse's dividend payout ratio is currently 49.26%.

Key Texas Roadhouse News

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

• Positive Sentiment: Q1 EPS beat expectations — TXRH reported GAAP EPS of $1.87 versus the Street at ~$1.80, a profit beat that supports the stock rally and investor confidence. Texas Roadhouse Announces First Quarter 2026 Results
• Positive Sentiment: Dividend announced — the company declared a quarterly dividend of $0.75/share (ex‑dividend June 2, payable June 30), a shareholder‑friendly move that can attract income‑oriented buyers. Texas Roadhouse Posts Strong Q1 Results, Hikes Dividend
• Neutral Sentiment: Revenue up strongly year‑over‑year but roughly flat to estimates — revenue grew ~10.5% YoY to $1.63B, essentially in line with expectations (about $10M below some estimates). The top‑line growth supports the EPS beat but tempers the magnitude of the beat. Texas Roadhouse Q1 Earnings Results: Revenue In Line With Expectations
• Neutral Sentiment: Underlying profitability metrics solid — TXRH reported a net margin (~6.9%) and strong ROE (~27.9%), reinforcing operational strength; longer‑term valuation (P/E, PEG) and full‑year guidance will matter for sustainability. Zacks: What Key Metrics Say
• Negative Sentiment: Small top‑line miss could limit upside — although EPS beat and the dividend lifted sentiment, the slight revenue shortfall and any conservative near‑term commentary on comps or margins from the conference call could cap further gains. Seeking Alpha: EPS Beats, Revenue Misses Slightly

Analyst Ratings Changes

TXRH has been the topic of a number of research analyst reports. Benchmark reissued a "hold" rating on shares of Texas Roadhouse in a research report on Monday, February 23rd. Morgan Stanley set a $199.00 target price on shares of Texas Roadhouse in a research report on Tuesday, April 21st. Citigroup cut their target price on shares of Texas Roadhouse from $184.00 to $176.00 and set a "neutral" rating on the stock in a research note on Friday, April 24th. The Goldman Sachs Group increased their price target on shares of Texas Roadhouse from $175.00 to $200.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 28th. Finally, Wells Fargo & Company lowered their price objective on shares of Texas Roadhouse from $220.00 to $200.00 and set an "overweight" rating for the company in a report on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $194.52.

Insider Buying and Selling

In related news, Director Gregory N. Moore sold 1,700 shares of the stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $171.59, for a total value of $291,703.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Hernan E. Mujica sold 5,000 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $170.00, for a total transaction of $850,000.00. Following the completion of the transaction, the chief technology officer owned 15,552 shares of the company's stock, valued at approximately $2,643,840. The trade was a 24.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 12,988 shares of company stock valued at $2,218,144 over the last 90 days. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Earned Wealth Advisors LLC bought a new position in Texas Roadhouse during the 1st quarter valued at approximately $253,000. WCM Investment Management LLC boosted its holdings in Texas Roadhouse by 7.3% in the first quarter. WCM Investment Management LLC now owns 136,387 shares of the restaurant operator's stock worth $22,138,000 after acquiring an additional 9,287 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Texas Roadhouse by 4.1% in the first quarter. Dimensional Fund Advisors LP now owns 864,006 shares of the restaurant operator's stock worth $142,670,000 after acquiring an additional 34,385 shares in the last quarter. Parallel Advisors LLC boosted its holdings in Texas Roadhouse by 3.1% in the first quarter. Parallel Advisors LLC now owns 5,135 shares of the restaurant operator's stock worth $848,000 after acquiring an additional 154 shares in the last quarter. Finally, KBC Group NV boosted its holdings in Texas Roadhouse by 12.0% in the first quarter. KBC Group NV now owns 1,939 shares of the restaurant operator's stock worth $320,000 after acquiring an additional 208 shares in the last quarter. 94.82% of the stock is currently owned by institutional investors.

Texas Roadhouse Stock Up 12.7%

The company has a fifty day simple moving average of $166.81 and a 200 day simple moving average of $172.64. The firm has a market capitalization of $11.74 billion, a P/E ratio of 29.26, a P/E/G ratio of 1.83 and a beta of 0.77.

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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