Texas Roadhouse, Inc. Announces Third Quarter 2026 Results Declares Quarterly Dividend of $0.75 per Share
Long-term debt reached $50 million, compared with none at the end of 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Texas Roadhouse (NasdaqGS: TXRH) reported third-quarter revenue growth of 9.5%, alongside higher earnings and an increase in restaurant-level profitability. For the 13 weeks ended September 29, 2026, revenue was $1.573 billion, net income rose 7.4% to $89.361 million, and diluted earnings per share increased 8.6% to $1.36. Comparable restaurant sales grew 4.3%. Restaurant margin, a non-GAAP measure excluding certain corporate and other costs, reached 14.6%, versus 14.3% a year earlier.
Comparable sales rose 1.5% in the first five weeks of the fourth quarter. The company expects positive comparable sales growth in both 2026 and 2027, with commodity inflation of approximately 5.0% and 4.0%, respectively. Its quarterly dividend of $0.75 per share is payable December 29, 2026, to shareholders of record December 1. Over 39 weeks, revenue increased 11.2% to $4.886 billion and diluted earnings per share rose 5.3% to $5.08.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter revenue increased 9.5% year over year to $1.573 billion.
- Moderate pointThird-quarter net income rose 7.4% year over year to $89.361 million.
- Moderate pointThird-quarter diluted earnings per share increased 8.6% to $1.36 from $1.25.
- Moderate pointThird-quarter operating income increased 6.2% year over year to $102.988 million.
- Moderate pointThird-quarter comparable restaurant sales increased 4.3%; store weeks grew 5.1%.
- Moderate pointThird-quarter restaurant margin dollars increased 11.9% to $228.6 million from $204.3 million.
- Moderate point39-week operating cash flow increased to $585.889 million from $509.602 million a year earlier.
- Moderate pointRevolving credit facility proceeds provided $50 million of funding, net of repayments, over 39 weeks.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 comparable sales are expected to grow, including menu pricing; store week growth is expected at 5.0%–5.5%.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2027 comparable sales are expected to grow, including 2026 pricing; store week growth is expected at 5.0%–6.0%.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 capital expenditures are expected at approximately $440 million; 2027 spending is expected at approximately $425 million.
18 minor points
- Minor pointThird-quarter average weekly sales reached $163,980 versus $157,325; to-go sales reached $23,628 versus $21,409.
- Minor pointThird-quarter restaurant margin rate increased to 14.6% from 14.3% a year earlier.
- Minor point39-week revenue increased 11.2% year over year to $4.886 billion.
- Minor point39-week net income increased 4.3% year over year to $334.727 million.
- Minor point39-week diluted earnings per share increased 5.3% to $5.08 from $4.82.
- Minor point39-week operating income increased 3.7% year over year to $392.117 million.
- Minor point39-week comparable restaurant sales increased 5.9%; store weeks grew 5.3%.
- Minor point39-week average weekly sales reached $171,764 versus $162,567; to-go sales reached $24,785 versus $21,930.
- Minor point39-week restaurant margin dollars increased 9.6% to $768.2 million from $700.9 million.
- Minor pointThird-quarter operating cash flow totaled $146.7 million.
- Minor point39-week franchise restaurant acquisitions totaled $71.778 million, net of cash acquired.
- Minor point39-week share repurchases used $84.209 million, including applicable excise taxes; third-quarter repurchases totaled $12.4 million.
- Minor pointQuarterly dividends declared per share were $0.75 versus $0.68 a year earlier.
- Minor point39-week dividends paid reached $147.886 million versus $135.367 million; third-quarter payments totaled $49.2 million.
- Minor pointCash and cash equivalents increased to $141.412 million from $134.709 million at December 30, 2025.
- Minor pointFourth-quarter comparable restaurant sales increased 1.5% in the first five weeks compared with 2025.
- Minor pointMenu pricing increased approximately 1.0% at the beginning of the fourth quarter.
- Minor pointOver 30 company restaurants are under construction across all brands.
Negative
- Moderate pointLong-term debt reached $50 million at September 29, 2026, versus none at December 30, 2025.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 commodity inflation is expected at approximately 5.0%; wage and other labor inflation at 3.5%–4.0%.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2027 commodity inflation is expected at approximately 4.0%; wage and other labor inflation at approximately 3.0%.
- Minor pointLate-quarter traffic softened, the company said.
- Minor point39-week restaurant margin rate declined to 15.8% from 16.0% a year earlier.
7 minor points
- Minor pointThird-quarter inflation included commodity inflation of 2.0% and wage and other labor inflation of 4.1%.
- Minor point39-week inflation included commodity inflation of 5.0% and wage and other labor inflation of 3.9%.
- Minor pointDepreciation and amortization rose to $60.317 million from $52.628 million quarterly; $175.501 million from $152.172 million over 39 weeks.
- Minor pointGeneral and administrative expenses rose to $59.282 million from $54.376 million quarterly; $192.777 million from $173.356 million over 39 weeks.
- Minor pointPre-opening expenses rose to $9.626 million from $7.419 million quarterly; $24.754 million from $19.695 million over 39 weeks.
- Minor pointNet impairment and closure expenses reached $3.596 million versus $0.140 million quarterly; $3.749 million versus $0.279 million over 39 weeks.
- Minor pointRoyalties and franchise fees declined to $7.171 million from $7.231 million quarterly; $20.711 million from $22.617 million over 39 weeks.
Key Figures
- Total revenue
- $1,573,074 thousand; +9.5%
- 13 weeks ended September 29, 2026, versus prior year
- Diluted earnings per share
- $1.36; +8.6%
- 13 weeks ended September 29, 2026, versus prior year
- Comparable restaurant sales
- +4.3%
- Company restaurants, 13 weeks ended September 29, 2026
- Restaurant margin rate
- 14.6%; increased 30 basis points
- 13 weeks ended September 29, 2026
- Fourth-quarter comparable sales
- +1.5%
- First five weeks of fiscal 2026 fourth quarter versus 2025
- 2026 store week growth expectation
- 5.0% to 5.5%
- Updated expectation; includes benefit from franchise acquisitions
- 2026 capital expenditures
- Approximately $440 million
- Updated full-year expectation
- Quarterly cash dividend
- $0.75 per share
- Payable December 29, 2026, to shareholders of record December 1, 2026
Historical Context
-
Q2 results showed revenue growth alongside lower net income and diluted EPS.
-
Q1 results reported revenue growth, diluted EPS growth, and a quarterly dividend of $0.75.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
LOUISVILLE, Ky., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 weeks ended September 29, 2026.
Financial Results
Financial results for the 13 and 39 weeks ended September 29, 2026 and September 30, 2025 were as follows:
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||
| ( | September 29, 2026 | September 30, 2025 | % change | September 29, 2026 | September 30, 2025 | % change | ||||||
| Total revenue | $ | 1,573,074 | $ | 1,436,342 | 9.5 | % | $ | 4,886,216 | $ | 4,396,044 | 11.2 | % |
| Income from operations | 102,988 | 96,949 | 6.2 | % | 392,117 | 378,023 | 3.7 | % | ||||
| Net income | 89,361 | 83,172 | 7.4 | % | 334,727 | 320,919 | 4.3 | % | ||||
| Diluted earnings per share | $ | 1.36 | $ | 1.25 | 8.6 | % | $ | 5.08 | $ | 4.82 | 5.3 | % |
Results at company restaurants for the 13 weeks ended September 29, 2026, as compared to the prior year as applicable, included the following:
- Comparable restaurant sales increased
4.3% and store weeks increased5.1% ; - Average weekly sales were
$163,980 of which$23,628 were to-go sales as compared to average weekly sales of$157,325 of which$21,409 were to-go sales in the prior year; - Restaurant margin dollars increased
11.9% to$228.6 million from$204.3 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, increased 30 basis points to14.6% primarily driven by higher sales partially offset by commodity inflation of2.0% and wage and other labor inflation of4.1% ; - Diluted earnings per share increased
8.6% primarily driven by higher restaurant margin dollars and the impact of share repurchases partially offset by higher depreciation and amortization expenses and higher general and administrative expenses; - Five company restaurants and three franchise restaurants were opened; and
- Cash provided by operating activities was
$146.7 million and capital allocation spend included capital expenditures of$135.6 million , dividends of$49.2 million , and repurchases of common stock of$12.4 million .
Results at company restaurants for the 39 weeks ended September 29, 2026, as compared to the prior year as applicable, included the following:
- Comparable restaurant sales increased
5.9% and store weeks increased5.3% ; - Average weekly sales were
$171,764 of which$24,785 were to-go sales as compared to average weekly sales of$162,567 of which$21,930 were to-go sales in the prior year; - Restaurant margin dollars increased
9.6% to$768.2 million from$700.9 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 24 basis points to15.8% as commodity inflation of5.0% and wage and other labor inflation of3.9% were partially offset by higher sales; - Diluted earnings per share increased
5.3% primarily driven by higher restaurant margin dollars and the impact of share repurchases partially offset by higher depreciation and amortization expenses and higher general and administrative expenses; - 18 company restaurants and six franchise restaurants were opened; and
- Cash provided by operating activities was
$585.9 million and capital allocation spend included capital expenditures of$314.4 million , franchise acquisitions of$71.8 million , dividends of$147.9 million , and repurchases of common stock of$83.1 million .
Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “While we entered the quarter with strong momentum, traffic softened late in the quarter. Despite this, our strategic priorities are unchanged. Our operators remain focused on delivering legendary food and legendary service to each and every guest while bringing our purpose of Serving Communities Across America and the World to life. We are confident that their commitment to the overall guest experience will continue to differentiate us, particularly as consumers navigate rising costs.”
Morgan added, “Looking ahead, our development pipeline continues to be strong, with over 30 company restaurants currently under construction across all brands, positioning us well to close 2026 on a strong note and build momentum into 2027. In addition to expanding our footprint, we remain committed to investing in our existing restaurants, exploring strategic franchise acquisitions, and returning capital to our shareholders through dividends and share repurchases, all supported by our disciplined capital allocation strategy.”
2026 Outlook
Comparable restaurant sales at company restaurants for the first five weeks of the fourth quarter of our 2026 fiscal year increased
Management updated the following expectations for 2026:
- Store week growth of
5.0% to5.5% , including the benefit from franchise acquisitions; - Wage and other labor inflation of
3.5% to4.0% ; - An effective income tax rate of approximately
13.0% ; and - Total capital expenditures of approximately
$440 million .
Management reiterated the following expectations for 2026:
- Positive comparable restaurant sales growth, including the benefit of menu pricing actions; and
- Commodity inflation of approximately
5.0% .
2027 Outlook
Management provided the following initial expectations for 2027:
- Positive comparable restaurant sales growth including the benefit of 2026 menu pricing actions;
- Store week growth of
5.0% to6.0% ; - Commodity inflation of approximately
4.0% ; - Wage and other labor inflation of approximately
3.0% ; - An effective tax rate of approximately
13.0% ; and - Total capital expenditures of approximately
$425 million .
Cash Dividend Payment
On November 4, 2026, the Company’s Board of Directors approved the payment of a quarterly cash dividend of
Non-GAAP Measures
The Company prepares the unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). Within the press release, the Company makes reference to restaurant margin (in dollars, as a percentage of restaurant and other sales, and per store week). Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin should not be considered in isolation, or as an alternative, to income from operations. This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non-restaurant-level costs that support operations, but do not have a direct impact on restaurant-level operational efficiency and performance, including pre-opening and general and administrative expenses. The Company excludes pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results. The Company excludes depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as they represent a non-cash charge for the investment in restaurants. The Company excludes impairment and closure expenses as it believes this provides a clearer perspective of ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in the industry. A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables.
Conference Call
Texas Roadhouse, Inc. is hosting a conference call today, November 5, 2026, at 5:00 p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company’s website at investor.texasroadhouse.com. Listeners may also access the call by dialing (833) 461-5787 and using conference ID 696404886. A replay of the webcast will be available on the Company’s Investor Relations website shortly after the conclusion of the call.
About the Company
Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 840 restaurants system-wide in 49 states, one U.S. territory, and ten foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com.
Forward-looking Statements
Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, conditions beyond management’s control such as weather, natural disasters, disease outbreaks, epidemics, or pandemics impacting customers or food supplies; labor or supply chain shortages or limited availability of staff or product needed to meet the Company’s business standards; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and the impact of tariffs; food safety and food-borne illness concerns; and other factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under “Part I—Item 1A. Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 30, 2025. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.
| Contacts: | |
| Investor Relations | Media |
| Michael Bailen | Megan Pence |
| (502) 515-7298 | (502) 461-1878 |
| Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited) | ||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||
| September 29, 2026 | September 30, 2025 | September 29, 2026 | September 30, 2025 | |||||||||
| Revenue: | ||||||||||||
| Restaurant and other sales | $ | 1,565,903 | $ | 1,429,111 | $ | 4,865,505 | $ | 4,373,427 | ||||
| Royalties and franchise fees | 7,171 | 7,231 | 20,711 | 22,617 | ||||||||
| Total revenue | 1,573,074 | 1,436,342 | 4,886,216 | 4,396,044 | ||||||||
| Costs and expenses: | ||||||||||||
| Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||
| Food and beverage | 555,419 | 511,531 | 1,721,246 | 1,513,846 | ||||||||
| Labor | 527,462 | 480,297 | 1,606,082 | 1,455,321 | ||||||||
| Rent | 25,610 | 23,085 | 75,570 | 68,590 | ||||||||
| Other operating | 228,774 | 209,917 | 694,420 | 634,762 | ||||||||
| Pre-opening | 9,626 | 7,419 | 24,754 | 19,695 | ||||||||
| Depreciation and amortization | 60,317 | 52,628 | 175,501 | 152,172 | ||||||||
| Impairment and closure, net | 3,596 | 140 | 3,749 | 279 | ||||||||
| General and administrative | 59,282 | 54,376 | 192,777 | 173,356 | ||||||||
| Total costs and expenses | 1,470,086 | 1,339,393 | 4,494,099 | 4,018,021 | ||||||||
| Income from operations | 102,988 | 96,949 | 392,117 | 378,023 | ||||||||
| Interest income, net | 794 | 643 | 2,360 | 2,988 | ||||||||
| Equity income from investments in unconsolidated affiliates | 151 | 120 | 477 | 1,771 | ||||||||
| Income before taxes | 103,933 | 97,712 | 394,954 | 382,782 | ||||||||
| Income tax expense | 12,679 | 12,812 | 53,191 | 55,130 | ||||||||
| Net income including noncontrolling interests | 91,254 | 84,900 | 341,763 | 327,652 | ||||||||
| Less: Net income attributable to noncontrolling interests | 1,893 | 1,728 | 7,036 | 6,733 | ||||||||
| Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 89,361 | $ | 83,172 | $ | 334,727 | $ | 320,919 | ||||
| Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | ||||||||||||
| Basic | $ | 1.36 | $ | 1.25 | $ | 5.09 | $ | 4.84 | ||||
| Diluted | $ | 1.36 | $ | 1.25 | $ | 5.08 | $ | 4.82 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 65,625 | 66,358 | 65,747 | 66,373 | ||||||||
| Diluted | 65,785 | 66,476 | 65,938 | 66,564 | ||||||||
| Cash dividends declared per share | $ | 0.75 | $ | 0.68 | $ | 2.25 | $ | 2.04 | ||||
| Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited) | ||||||
| September 29, 2026 | December 30, 2025 | |||||
| Cash and cash equivalents | $ | 141,412 | $ | 134,709 | ||
| Other current assets, net | 142,437 | 316,767 | ||||
| Property and equipment, net | 1,963,478 | 1,803,841 | ||||
| Operating lease right-of-use assets, net | 965,482 | 879,521 | ||||
| Goodwill | 275,036 | 242,220 | ||||
| Intangible assets, net | 24,549 | 17,742 | ||||
| Other assets | 182,531 | 154,672 | ||||
| Total assets | $ | 3,694,925 | $ | 3,549,472 | ||
| Current liabilities | 744,102 | 908,837 | ||||
| Operating lease liabilities, net of current portion | 1,032,210 | 943,070 | ||||
| Long-term debt | 50,000 | — | ||||
| Other liabilities | 258,246 | 215,863 | ||||
| Texas Roadhouse, Inc. and subsidiaries stockholders’ equity | 1,589,948 | 1,460,820 | ||||
| Noncontrolling interests | 20,419 | 20,882 | ||||
| Total liabilities and equity | $ | 3,694,925 | $ | 3,549,472 | ||
| Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||
| 39 Weeks Ended | ||||||
| September 29, 2026 | September 30, 2025 | |||||
| Cash flows from operating activities: | ||||||
| Net income including noncontrolling interests | $ | 341,763 | $ | 327,652 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Depreciation and amortization | 175,501 | 152,172 | ||||
| Share-based compensation expense | 41,091 | 35,829 | ||||
| Deferred income taxes | 15,559 | 2,011 | ||||
| Other noncash adjustments, net | 6,427 | 3,158 | ||||
| Change in working capital, net of acquisitions | 5,548 | (11,220 | ) | |||
| Net cash provided by operating activities | 585,889 | 509,602 | ||||
| Cash flows from investing activities: | ||||||
| Capital expenditures - property and equipment | (314,408 | ) | (298,808 | ) | ||
| Acquisitions of franchise restaurants, net of cash acquired | (71,778 | ) | (94,230 | ) | ||
| Other investing activities, net | 11,127 | 8,836 | ||||
| Net cash used in investing activities | (375,059 | ) | (384,202 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from revolving credit facility, net of repayments | 50,000 | — | ||||
| Repurchase of shares of common stock, including excise taxes as applicable | (84,209 | ) | (100,414 | ) | ||
| Dividends paid to shareholders | (147,886 | ) | (135,367 | ) | ||
| Other financing activities, net | (22,032 | ) | (26,672 | ) | ||
| Net cash used in financing activities | (204,127 | ) | (262,453 | ) | ||
| Net increase (decrease) in cash and cash equivalents | 6,703 | (137,053 | ) | |||
| Cash and cash equivalents - beginning of period | 134,709 | 245,225 | ||||
| Cash and cash equivalents - end of period | $ | 141,412 | $ | 108,172 | ||
| Texas Roadhouse, Inc. and Subsidiaries Reconciliation of Income from Operations to Restaurant Margin ($ in thousands) (unaudited) | ||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||
| September 29, 2026 | September 30, 2025 | September 29, 2026 | September 30, 2025 | |||||||||
| Income from operations | $ | 102,988 | $ | 96,949 | $ | 392,117 | $ | 378,023 | ||||
| Less: | ||||||||||||
| Royalties and franchise fees | 7,171 | 7,231 | 20,711 | 22,617 | ||||||||
| Add: | ||||||||||||
| Pre-opening | 9,626 | 7,419 | 24,754 | 19,695 | ||||||||
| Depreciation and amortization | 60,317 | 52,628 | 175,501 | 152,172 | ||||||||
| Impairment and closure, net | 3,596 | 140 | 3,749 | 279 | ||||||||
| General and administrative | 59,282 | 54,376 | 192,777 | 173,356 | ||||||||
| Restaurant margin | $ | 228,638 | $ | 204,281 | $ | 768,187 | $ | 700,908 | ||||
| Restaurant margin (as a percentage of restaurant and other sales) | 14.6 | % | 14.3 | % | 15.8 | % | 16.0 | % | ||||
| Texas Roadhouse, Inc. and Subsidiaries Supplemental Financial and Operating Information ($ amounts in thousands, except restaurant margin $ per store week and weekly sales by group) (unaudited) | ||||||||
| 13 Weeks Ended | ||||||||
| September 29, 2026 | September 30, 2025 | Change | ||||||
| Company restaurants (all concepts) | ||||||||
| Restaurant and other sales | $ | 1,565,903 | $ | 1,429,111 | 9.6 | % | ||
| Store weeks | 9,541 | 9,074 | 5.1 | % | ||||
| Comparable restaurant sales (1) | 4.3 | % | 6.1 | % | ||||
| Restaurant operating costs (as a % of restaurant and other sales) | ||||||||
| Food and beverage costs | 35.5 | % | 35.8 | % | 32 bps | |||
| Labor | 33.7 | % | 33.6 | % | (8)bps | |||
| Rent | 1.6 | % | 1.6 | % | (2)bps | |||
| Other operating | 14.6 | % | 14.7 | % | 8 bps | |||
| Total | 85.4 | % | 85.7 | % | ||||
| Restaurant margin % | 14.6 | % | 14.3 | % | 30 bps | |||
| Restaurant margin $ | $ | 228,638 | $ | 204,281 | 11.9 | % | ||
| Restaurant margin $/Store week | $ | 23,964 | $ | 22,513 | 6.4 | % | ||
| Texas Roadhouse restaurants only: | ||||||||
| Store weeks | 8,618 | 8,258 | 4.4 | % | ||||
| Comparable restaurant sales (1) | 4.4 | % | 6.3 | % | ||||
| Average unit volume (2) | $ | 2,197 | $ | 2,113 | 4.0 | % | ||
| Weekly sales by group: | ||||||||
| Comparable restaurants (633 and 599 units) | $ | 169,673 | $ | 163,079 | 4.0 | % | ||
| Average unit volume restaurants (20 and 26 units) | $ | 147,430 | $ | 132,628 | 11.2 | % | ||
| Restaurants less than 6 months old (11 and 13 units) | $ | 184,127 | $ | 158,932 | 15.9 | % | ||
| Bubba’s 33 restaurants only: | ||||||||
| Store weeks | 779 | 691 | 12.7 | % | ||||
| Comparable restaurant sales (1) | 2.8 | % | 1.8 | % | ||||
| Average unit volume (2) | $ | 1,564 | $ | 1,533 | 2.0 | % | ||
| Weekly sales by group: | ||||||||
| Comparable restaurants (49 and 45 units) | $ | 121,255 | $ | 117,470 | 3.2 | % | ||
| Average unit volume restaurants (7 and 4 units) | $ | 113,683 | $ | 123,363 | (7.8 | )% | ||
| Restaurants less than 6 months old (5 and 5 units) | $ | 151,488 | $ | 132,031 | 14.7 | % | ||
| Texas Roadhouse franchise restaurants only: | ||||||||
| Store weeks | 1,224 | 1,252 | (2.2 | )% | ||||
| Comparable restaurant sales | 4.5 | % | 7.2 | % | ||||
_____________________
| (1) | Comparable restaurant sales reflect the change in sales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable. |
| (2) | Average unit volume includes sales from restaurants open for a full six months before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable. |
| Texas Roadhouse, Inc. and Subsidiaries Restaurant Unit Activity (unaudited) | ||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||
| September 29, 2026 | September 30, 2025 | Change | September 29, 2026 | September 30, 2025 | Change | |||||||
| Restaurant openings | ||||||||||||
| Company - Texas Roadhouse | 2 | 4 | (2 | ) | 11 | 13 | (2 | ) | ||||
| Company - Bubba’s 33 | 2 | 2 | — | 5 | 5 | — | ||||||
| Company - Jaggers | 1 | 1 | — | 2 | 1 | 1 | ||||||
| Total company restaurants | 5 | 7 | (2 | ) | 18 | 19 | (1 | ) | ||||
| Franchise - Texas Roadhouse - Domestic | — | — | — | — | — | — | ||||||
| Franchise - Jaggers - Domestic | — | — | — | 1 | 1 | — | ||||||
| Franchise - Texas Roadhouse - Int'l (1) | 3 | 2 | 1 | 5 | 2 | 3 | ||||||
| Total franchise restaurants | 3 | 2 | 1 | 6 | 3 | 3 | ||||||
| Total restaurants | 8 | 9 | (1 | ) | 24 | 22 | 2 | |||||
| Restaurant acquisitions/dispositions | ||||||||||||
| Company - Texas Roadhouse | — | — | — | 5 | 17 | (12 | ) | |||||
| Franchise - Texas Roadhouse - Domestic | — | — | — | (5 | ) | (17 | ) | 12 | ||||
| Restaurants open at the end of the quarter | ||||||||||||
| Company - Texas Roadhouse | 664 | 638 | 26 | |||||||||
| Company - Bubba’s 33 | 61 | 54 | 7 | |||||||||
| Company - Jaggers | 12 | 10 | 2 | |||||||||
| Total company restaurants | 737 | 702 | 35 | |||||||||
| Franchise - Texas Roadhouse - Domestic | 31 | 39 | (8 | ) | ||||||||
| Franchise - Jaggers - Domestic | 6 | 5 | 1 | |||||||||
| Franchise - Texas Roadhouse - Int'l (1) | 65 | 59 | 6 | |||||||||
| Franchise - Jaggers - Int'l | 1 | 1 | — | |||||||||
| Total franchise restaurants | 103 | 104 | (1 | ) | ||||||||
| — | ||||||||||||
| Total restaurants | 840 | 806 | 34 | |||||||||
| (1) Includes a U.S. territory. | ||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Texas Roadhouse's third-quarter 2026 earnings?
Texas Roadhouse earned $1.36 per diluted share for the 13 weeks ended September 29, 2026, up 8.6% from $1.25 a year earlier. Net income increased 7.4% to $89.361 million, while revenue rose 9.5% to $1.573 billion.
When will Texas Roadhouse pay its $0.75 quarterly dividend?
Texas Roadhouse will pay its $0.75-per-share quarterly cash dividend on December 29, 2026, to shareholders of record at the close of business on December 1, 2026. The board approved the payment on November 4, 2026.
What effective tax rate does Texas Roadhouse expect for 2026 and 2027?
Texas Roadhouse expects an effective income tax rate of approximately 13.0% for both 2026 and 2027.
What costs does Texas Roadhouse exclude from restaurant margin?
Texas Roadhouse excludes pre-opening, depreciation and amortization, impairment and closure, and general and administrative expenses from restaurant margin. The non-GAAP measure represents restaurant and other sales less restaurant-level operating costs. It is not an alternative to operating income and does not measure overall company profitability.