Texas Roadhouse (NASDAQ:TXRH) Posts Quarterly Earnings Results

Texas Roadhouse (NASDAQ:TXRH) released its quarterly earnings results on Thursday. The restaurant operator reported $1.85 earnings per share for the quarter, beating analysts’ consensus estimates of $1.83 by $0.02, FiscalAI reports. Texas Roadhouse had a return on equity of 27.57% and a net margin of 6.63%.The company had revenue of $1.68 billion for the quarter, compared to analysts’ expectations of $1.67 billion. During the same quarter in the previous year, the company posted $1.86 earnings per share. The business’s revenue for the quarter was up 11.1% compared to the same quarter last year.

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

NASDAQ TXRH opened at $208.00 on Friday. The company’s fifty day moving average is $187.54 and its two-hundred day moving average is $178.90. Texas Roadhouse has a 52-week low of $153.82 and a 52-week high of $213.26. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.46 and a quick ratio of 0.40. The firm has a market capitalization of $13.67 billion, a price-to-earnings ratio of 33.28, a P/E/G ratio of 2.30 and a beta of 0.79.

Texas Roadhouse Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 1st will be paid a $0.75 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $3.00 annualized dividend and a dividend yield of 1.4%. Texas Roadhouse’s dividend payout ratio (DPR) is presently 47.92%.

Insider Buying and Selling

In other Texas Roadhouse news, Director Gregory N. Moore sold 1,250 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $178.14, for a total transaction of $222,675.00. Following the completion of the transaction, the director directly owned 30,900 shares in the company, valued at $5,504,526. This represents a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Jane Grote Abell sold 339 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $177.43, for a total value of $60,148.77. Following the completion of the sale, the director owned 2,161 shares of the company’s stock, valued at approximately $383,426.23. This trade represents a 13.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 6,154 shares of company stock worth $1,115,864. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Texas Roadhouse

Several large investors have recently made changes to their positions in the company. &PARTNERS increased its position in shares of Texas Roadhouse by 3.5% during the fourth quarter. &PARTNERS now owns 1,820 shares of the restaurant operator’s stock valued at $302,000 after acquiring an additional 61 shares during the last quarter. Compound Planning Inc. raised its position in Texas Roadhouse by 5.6% in the fourth quarter. Compound Planning Inc. now owns 1,408 shares of the restaurant operator’s stock valued at $234,000 after purchasing an additional 75 shares during the period. NewEdge Advisors LLC lifted its stake in Texas Roadhouse by 3.1% during the second quarter. NewEdge Advisors LLC now owns 2,499 shares of the restaurant operator’s stock worth $468,000 after purchasing an additional 76 shares in the last quarter. Wilmington Savings Fund Society FSB grew its stake in shares of Texas Roadhouse by 3.6% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 2,361 shares of the restaurant operator’s stock worth $392,000 after acquiring an additional 81 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC increased its position in shares of Texas Roadhouse by 1.3% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 6,715 shares of the restaurant operator’s stock worth $1,115,000 after acquiring an additional 85 shares during the period. Institutional investors and hedge funds own 94.82% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. BTIG Research lifted their target price on Texas Roadhouse from $200.00 to $220.00 and gave the stock a “buy” rating in a report on Friday. JPMorgan Chase & Co. increased their price objective on Texas Roadhouse from $182.00 to $188.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. Mizuho upped their price target on shares of Texas Roadhouse from $190.00 to $230.00 and gave the company an “outperform” rating in a research report on Friday, July 31st. Stephens lifted their price objective on shares of Texas Roadhouse from $180.00 to $205.00 and gave the stock an “equal weight” rating in a research report on Friday. Finally, Citigroup boosted their target price on shares of Texas Roadhouse from $193.00 to $209.00 and gave the company a “neutral” rating in a research note on Friday. Ten research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $207.71.

Texas Roadhouse News Summary

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

• Positive Sentiment: Texas Roadhouse reported second-quarter revenue of $1.68 billion, up 11.1% year over year and slightly above the $1.67 billion consensus estimate. Adjusted earnings of $1.85 per share exceeded the widely cited $1.83 consensus estimate. Texas Roadhouse Announces Second Quarter 2026 Results
• Positive Sentiment: Analysts responded favorably to the results and cited increased sales and restaurant traffic. TD Cowen raised its price target from $205 to $230 and maintained a Buy rating, while BTIG lifted its target from $200 to $220 and also assigned a Buy rating. Analysts Raise Forecasts After Q2 Results
• Positive Sentiment: The board declared a quarterly dividend of $0.75 per share, payable September 29 to shareholders of record September 1. The dividend provides an annualized yield of approximately 1.4%.
• Neutral Sentiment: Stephens raised its price target from $180 to $205 but retained an Equal Weight rating, indicating that the firm sees limited upside at current levels.
• Negative Sentiment: Second-quarter EPS declined from $1.86 a year earlier to $1.85. In addition, one Zacks measure compared results with a higher $1.90 consensus estimate and characterized the quarter as a modest miss, highlighting uncertainty around the earnings beat. Texas Roadhouse Q2 Earnings Report

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.