Texas Roadhouse (NASDAQ:TXRH) Posts Earnings Results, Misses Expectations By $0.10 EPS

Texas Roadhouse (NASDAQ:TXRH) posted its quarterly earnings results on Thursday. The restaurant operator reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.46 by ($0.10), FiscalAI reports. The company had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%. Texas Roadhouse’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period last year, the company earned $1.25 earnings per share.

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

• Third-quarter revenue grew 9.5% to $1.6 billion, with comparable sales up 4.3% on 0.7% traffic growth. Restaurant margin increased 30 basis points to 14.6%, and diluted EPS rose 8.6% to $1.36.
• Comps slowed to 1% in September after stronger July and August results; management attributed some weakness to a false social-media hoax. Fourth-quarter comps were up 1.5% through five weeks, with sequential improvement reported, though holiday shifts are expected to reduce quarterly comp growth by about 75 basis points.
• Management expects 2026 commodity inflation of about 5% and labor inflation of 3.5%–4%; for 2027, it forecasts commodity inflation of about 4% and labor inflation of about 3%. The company said lower food-cost pressure and sales leverage helped improve third-quarter restaurant margins.
• The company remains on track for about 35 restaurant openings in 2026 and plans about 35 more in 2027, while franchise partners are targeting roughly 10 openings in 2027. Development agreements in Vietnam and Japan add to international growth opportunities, although planned capital expenditures rise to about $440 million in 2026 and $425 million in 2027.

Texas Roadhouse Stock Down 2.4%

Shares of TXRH traded down $4.66 during mid-day trading on Thursday, hitting $191.79. 2,453,260 shares of the company’s stock were exchanged, compared to its average volume of 1,310,156. The firm has a fifty day moving average of $173.05 and a two-hundred day moving average of $179.11. Texas Roadhouse has a twelve month low of $153.82 and a twelve month high of $216.30. The stock has a market cap of $12.59 billion, a price-to-earnings ratio of 31.43, a P/E/G ratio of 2.13 and a beta of 0.81. The company has a quick ratio of 0.39, a current ratio of 0.46 and a debt-to-equity ratio of 0.03.

Key Stories Impacting Texas Roadhouse

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

• Positive Sentiment: Revenue rose 9.5% year over year to $1.57 billion, while earnings increased to $1.36 per share from $1.25 a year earlier. Quarterly results
• Positive Sentiment: The company declared a quarterly dividend of $0.75 per share, offering continued income to shareholders. Results and dividend announcement
• Neutral Sentiment: A report characterized the quarter as strong despite softer traffic, suggesting traffic trends remain an area to watch. Quarterly results and traffic
• Negative Sentiment: Texas Roadhouse missed consensus earnings expectations, reporting $1.36 per share versus estimates of about $1.46–$1.49. Revenue of $1.57 billion also came in just below the $1.58 billion estimate. The shortfalls may overshadow the year-over-year growth. Earnings and revenue estimates

Analyst Upgrades and Downgrades

TXRH has been the topic of a number of research analyst reports. BTIG Research upped their price objective on shares of Texas Roadhouse from $200.00 to $220.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Benchmark upgraded shares of Texas Roadhouse from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 6th. Mizuho lifted their target price on shares of Texas Roadhouse from $190.00 to $220.00 and gave the company an “outperform” rating in a research note on Friday, October 30th. TD Cowen lowered their price target on shares of Texas Roadhouse from $230.00 to $195.00 and set a “buy” rating on the stock in a report on Friday, October 16th. Finally, Royal Bank Of Canada lowered their price target on shares of Texas Roadhouse from $235.00 to $220.00 and set an “outperform” rating on the stock in a report on Monday, October 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $206.32.

Insider Buying and Selling at Texas Roadhouse

In related news, insider Lloyd Marshall sold 500 shares of the company’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $204.65, for a total value of $102,325.00. Following the completion of the sale, the insider directly owned 9,826 shares in the company, valued at approximately $2,010,890.90. This represents a 4.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Donna E. Epps sold 820 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $206.56, for a total transaction of $169,379.20. Following the transaction, the director directly owned 4,042 shares in the company, valued at $834,915.52. The trade was a 16.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 19,970 shares of company stock worth $4,061,808 in the last ninety days. Company insiders own 0.50% of the company’s stock.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc (NASDAQ: TXRH) operates full-service casual dining restaurants under the Texas Roadhouse, Bubba’s 33 and Jaggers brands. Its restaurants serve made-from-scratch meals centered on hand-cut steaks, ribs, chicken, seafood, burgers and other American-style dishes, along with freshly baked rolls and a selection of beverages.

Founded in 1993, Texas Roadhouse began with its first restaurant in Clarksville, Indiana. The company’s restaurant network includes company-owned and franchised locations across the United States, as well as international locations.