Texas Roadhouse (NASDAQ:TXRH) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Texas Roadhouse (NASDAQ:TXRH) issued its quarterly earnings data on Thursday. The restaurant operator reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.83 by $0.02, FiscalAI reports. The business had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.67 billion. Texas Roadhouse had a net margin of 6.85% and a return on equity of 27.86%. The firm’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.86 EPS.

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

Texas Roadhouse stock traded down $0.33 during mid-day trading on Thursday, reaching $208.17. The company’s stock had a trading volume of 1,474,203 shares, compared to its average volume of 812,770. Texas Roadhouse has a 12-month low of $153.82 and a 12-month high of $213.26. The company has a market capitalization of $13.68 billion, a P/E ratio of 33.25, a PEG ratio of 2.31 and a beta of 0.79. 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 firm’s fifty day moving average price is $186.99 and its two-hundred day moving average price is $178.70.

Insider Activity

In other news, Director Jane Grote Abell sold 339 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $177.43, for a total value of $60,148.77. Following the completion of the transaction, the director directly owned 2,161 shares of the company’s stock, valued at $383,426.23. This trade represents a 13.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Sean G. Renfroe sold 426 shares of Texas Roadhouse stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $192.53, for a total value of $82,017.78. Following the completion of the transaction, the general counsel owned 860 shares of the company’s stock, valued at approximately $165,575.80. This trade represents a 33.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 6,154 shares of company stock valued at $1,115,864. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Texas Roadhouse

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sivia Capital Partners LLC purchased a new stake in shares of Texas Roadhouse in the second quarter worth $657,000. Vident Advisory LLC increased its stake in Texas Roadhouse by 7.4% in the 4th quarter. Vident Advisory LLC now owns 1,401 shares of the restaurant operator’s stock worth $233,000 after acquiring an additional 97 shares during the last quarter. Empowered Funds LLC bought a new position in Texas Roadhouse in the 4th quarter worth about $91,000. Nicolet Advisory Services LLC purchased a new stake in shares of Texas Roadhouse in the 4th quarter valued at about $185,000. Finally, Vise Technologies Inc. purchased a new stake in shares of Texas Roadhouse in the 4th quarter valued at about $241,000. 94.82% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Barclays reduced their target price on Texas Roadhouse from $188.00 to $175.00 and set an “equal weight” rating for the company in a report on Friday, May 8th. TD Cowen lifted their price target on Texas Roadhouse from $192.00 to $205.00 and gave the stock a “buy” rating in a report on Wednesday, May 27th. Royal Bank Of Canada raised Texas Roadhouse from a “sector perform” rating to an “outperform” rating and boosted their price objective for the stock from $180.00 to $210.00 in a research report on Friday, May 15th. Wall Street Zen upgraded Texas Roadhouse from a “sell” rating to a “hold” rating in a research note on Sunday, May 10th. Finally, BMO Capital Markets raised their target price on Texas Roadhouse from $165.00 to $180.00 and gave the company a “market perform” rating in a research report on Thursday, May 21st. Ten investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $198.80.

About Texas Roadhouse

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.