Texas Roadhouse (NASDAQ:TXRH) Releases Quarterly Earnings Results, Misses Expectations By $0.25 EPS

Texas Roadhouse (NASDAQ:TXRH) released its quarterly earnings data on Thursday. The restaurant operator reported $1.28 earnings per share for the quarter, missing the consensus estimate of $1.53 by ($0.25), FiscalAI reports. The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.50 billion. Texas Roadhouse had a net margin of 7.49% and a return on equity of 30.59%. The business’s revenue was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.73 EPS.

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

• Texas Roadhouse delivered strong top-line results in 2025 with revenue of nearly $5.9 billion, full‑year same‑store sales up 4.9% (including 2.8% traffic growth), and the milestone of a 60th consecutive quarter of comparable sales growth (ex‑2020).
• Management flagged commodity inflation—driven almost entirely by beef—as the main headwind, guiding to approximately 7% commodity inflation for 2026 and warning restaurant margin percentage will be pressured, particularly in the first half of the year.
• Pricing will be modest and measured—3.1% menu pricing carried in Q1, then a 1.9% menu increase beginning in Q2 (implying about 3.6% menu pricing in Q2–Q3)—with an emphasis on maintaining the brand’s value proposition.
• Technology investments are advancing: the company completed rollout of the Digital Kitchen and upgraded guest management systems, and is expanding handheld server tablet testing to speed service, improve accuracy and support more to‑go business.
• Strong free cash flow (over $730 million in 2025) underpins a consistent capital allocation plan—~$400 million capex guidance, franchise acquisitions, $150 million of buybacks, and a 10% quarterly dividend increase to $0.75.

Texas Roadhouse Stock Down 2.1%

NASDAQ TXRH traded down $3.76 on Friday, reaching $178.77. The company had a trading volume of 2,142,242 shares, compared to its average volume of 1,007,123. The company’s fifty day moving average is $180.60 and its 200 day moving average is $173.58. Texas Roadhouse has a 52-week low of $148.73 and a 52-week high of $199.99. The stock has a market capitalization of $11.82 billion, a P/E ratio of 27.33, a P/E/G ratio of 3.05 and a beta of 0.88.

Texas Roadhouse Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be given a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, March 17th. This is an increase from Texas Roadhouse’s previous quarterly dividend of $0.68. Texas Roadhouse’s payout ratio is currently 44.66%.

Key Stories Impacting Texas Roadhouse

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

• Positive Sentiment: Management’s forward outlook was described as strong and helped offset the Q4 earnings miss, which supported the stock earlier in the session. Texas Roadhouse stock rises as strong outlook offsets fourth-quarter earnings miss
• Positive Sentiment: The board raised the quarterly dividend to $0.75 (10.3% increase), yielding ~1.7% annualized — a shareholder‑friendly move that supports investor confidence despite near‑term margin pressure. (Record/ex‑dividend dates announced with the earnings release.) Press Release
• Positive Sentiment: BTIG reaffirmed its buy rating and a $200 price target, signaling some analysts remain constructive on longer‑term growth/return potential. BTIG note via Benzinga
• Neutral Sentiment: Stephens raised its price target from $168 to $180 and kept an equal‑weight rating — a modest upgrade but not a strong endorsement. Stephens note via The Fly
• Negative Sentiment: Q4 results missed consensus: EPS $1.28 vs. $1.57 estimate and revenue $1.48B vs. $1.50B — a ~25% EPS decline year‑over‑year — which is the primary reason for today’s weakness. Earnings summary / call
• Negative Sentiment: Management warned that higher commodity costs are pressuring margins and will weigh on near‑term profitability; investors will watch cost trends closely. Seeking Alpha: commodity costs
• Negative Sentiment: Analyst sentiment is mixed: Truist trimmed its target to $186 and kept a hold rating, signaling limited near‑term upside from some shops despite other bullish calls. Truist note (via TickerReport)

Wall Street Analysts Forecast Growth

TXRH has been the subject of several research analyst reports. Royal Bank Of Canada decreased their price target on shares of Texas Roadhouse from $185.00 to $175.00 and set a “sector perform” rating for the company in a research note on Friday, November 7th. KeyCorp reaffirmed a “sector weight” rating on shares of Texas Roadhouse in a research report on Friday. Wells Fargo & Company upped their price target on Texas Roadhouse from $195.00 to $220.00 and gave the stock an “overweight” rating in a research note on Thursday, January 22nd. BTIG Research reiterated a “buy” rating and issued a $200.00 price target on shares of Texas Roadhouse in a report on Friday. Finally, The Goldman Sachs Group raised their price objective on Texas Roadhouse from $175.00 to $200.00 and gave the company a “neutral” rating in a research note on Wednesday, January 28th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $197.09.

Insider Transactions at Texas Roadhouse

In related news, CEO Gerald L. Morgan sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $196.00, for a total transaction of $980,000.00. Following the transaction, the chief executive officer directly owned 91,774 shares of the company’s stock, valued at $17,987,704. This trade represents a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Hugh J. Carroll sold 1,000 shares of the business’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $167.27, for a total transaction of $167,270.00. Following the transaction, the director owned 1,854 shares in the company, valued at approximately $310,118.58. This trade represents a 35.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 12,400 shares of company stock worth $2,320,920 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Texas Roadhouse

Several hedge funds have recently added to or reduced their stakes in the stock. Balyasny Asset Management L.P. purchased a new stake in shares of Texas Roadhouse during the third quarter worth $157,310,000. Wellington Management Group LLP grew its position in shares of Texas Roadhouse by 228.4% in the fourth quarter. Wellington Management Group LLP now owns 1,329,052 shares of the restaurant operator’s stock valued at $220,623,000 after purchasing an additional 924,306 shares in the last quarter. Steadfast Capital Management LP raised its stake in shares of Texas Roadhouse by 99.2% during the 3rd quarter. Steadfast Capital Management LP now owns 1,275,648 shares of the restaurant operator’s stock valued at $211,949,000 after purchasing an additional 635,178 shares during the period. AQR Capital Management LLC lifted its holdings in Texas Roadhouse by 27.4% during the 4th quarter. AQR Capital Management LLC now owns 2,674,102 shares of the restaurant operator’s stock worth $443,901,000 after purchasing an additional 575,685 shares in the last quarter. Finally, Artisan Partners Limited Partnership purchased a new stake in Texas Roadhouse during the 4th quarter worth about $76,215,000. 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.