Texas Roadhouse (NASDAQ:TXRH) Posts Earnings Results

Texas Roadhouse (NASDAQ:TXRH) issued its quarterly earnings results on Thursday. The restaurant operator reported $1.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.57 by ($0.29), FiscalAI reports. Texas Roadhouse had a return on equity of 30.59% and a net margin of 7.49%.The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same period in the prior year, the firm earned $1.73 earnings per share. The business’s revenue was up 3.1% on a year-over-year basis.

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 3.1%

TXRH stock traded down $5.63 during mid-day trading on Friday, hitting $176.90. 1,016,081 shares of the company were exchanged, compared to its average volume of 970,739. Texas Roadhouse has a 12-month low of $148.73 and a 12-month high of $199.99. The firm has a market capitalization of $11.70 billion, a P/E ratio of 27.12, a PEG ratio of 3.05 and a beta of 0.88. The business has a fifty day simple moving average of $180.60 and a 200-day simple moving average of $173.58.

Texas Roadhouse Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a $0.75 dividend. 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. This represents a $3.00 dividend on an annualized basis and a yield of 1.7%. Texas Roadhouse’s dividend payout ratio is currently 41.59%.

More Texas Roadhouse News

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

• Positive Sentiment: Company raised its quarterly dividend to $0.75 (10.3% increase), boosting yield to ~1.6% and signaling confidence in cash flow — a supportive, shareholder-friendly move. Texas Roadhouse Hikes Dividend Despite Earnings Pressure
• Positive Sentiment: BTIG reaffirmed a “buy” rating and a $200 price target (~9.6% upside from the open), providing bullish analyst support that may limit downside and attract buyers. BTIG Reaffirms Buy on TXRH
• Neutral Sentiment: Stephens raised its price target from $168 to $180 but kept an “equal weight” rating — a modest PT increase that still implies little upside vs. current levels and reflects mixed conviction. Stephens Raises TXRH Price Target
• Neutral Sentiment: Company published Q4 results and the earnings call transcript — useful for digging into margin drivers, comps, guidance color and unit growth, but not a new catalyst by itself. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 EPS of $1.28 missed consensus (~$1.57) and revenue of $1.48B slightly missed estimates; EPS fell from $1.73 a year ago — an earnings miss that explains downward pressure and raises near-term growth/efficiency questions. Zacks: TXRH Misses Q4 Estimates

Wall Street Analyst Weigh In

Several brokerages have issued reports on TXRH. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Texas Roadhouse in a research note on Monday, December 29th. Royal Bank Of Canada lowered their price target on shares of Texas Roadhouse from $185.00 to $175.00 and set a “sector perform” rating on the stock in a research report on Friday, November 7th. Wall Street Zen downgraded shares of Texas Roadhouse from a “hold” rating to a “sell” rating in a report on Saturday, January 3rd. BMO Capital Markets restated a “market perform” rating on shares of Texas Roadhouse in a report on Friday. Finally, Wells Fargo & Company lifted their price objective on Texas Roadhouse from $195.00 to $220.00 and gave the stock an “overweight” rating in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $197.32.

Insider Activity

In other Texas Roadhouse news, CEO Gerald L. Morgan sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $196.00, for a total value of $980,000.00. Following the sale, the chief executive officer owned 91,774 shares of the company’s stock, valued at $17,987,704. The trade was a 5.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Gregory N. Moore sold 1,400 shares of the company’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $170.00, for a total value of $238,000.00. Following the transaction, the director owned 32,150 shares in the company, valued at $5,465,500. This trade represents a 4.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 12,400 shares of company stock valued at $2,320,920. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Texas Roadhouse

Institutional investors and hedge funds have recently bought and sold shares of the business. Measured Wealth Private Client Group LLC acquired a new stake in shares of Texas Roadhouse during the third quarter valued at $33,000. Garton & Associates Financial Advisors LLC purchased a new position in shares of Texas Roadhouse during the 4th quarter worth about $34,000. Los Angeles Capital Management LLC purchased a new stake in Texas Roadhouse in the fourth quarter valued at approximately $48,000. Geneos Wealth Management Inc. raised its stake in Texas Roadhouse by 36.0% during the first quarter. Geneos Wealth Management Inc. now owns 419 shares of the restaurant operator’s stock worth $70,000 after purchasing an additional 111 shares during the period. Finally, Quarry LP acquired a new position in shares of Texas Roadhouse in the 4th quarter valued at $73,000. Hedge funds and other institutional investors own 94.82% of the company’s stock.

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.