Texas Roadhouse Stock Price, News & Analysis

Texas Roadhouse, Inc. (NASDAQ: TXRH) is a restaurant company that operates predominantly in the casual dining segment. According to company disclosures, it is a growing restaurant business that first opened in 1993 and has expanded to a system of hundreds of restaurants across 49 states, one U.S. territory, and multiple foreign countries. The company is based in Louisville, Kentucky and its common stock is listed on the Nasdaq Global Select Market under the symbol TXRH.

Texas Roadhouse, Inc. manages its restaurant and franchising operations by concept. As described in its segment information, the company has identified Texas Roadhouse, Bubba’s 33, Jaggers, and certain retail initiatives as separate operating segments, with Texas Roadhouse and Bubba’s 33 designated as reportable segments. The Texas Roadhouse concept is described as a moderately priced, full-service, casual dining restaurant offering steaks and other menu items, and this segment generates the majority of the company’s revenue.

Business model and concepts

The company’s business model combines company-operated restaurants with franchised locations. Its filings and press releases distinguish between company restaurants and franchise restaurants, and between domestic and international franchise operations. Revenue is derived from restaurant and other sales at company units, as well as royalties and franchise fees from franchised locations. Texas Roadhouse, Inc. also reports on restaurant-level operating metrics such as comparable restaurant sales, average weekly sales, and restaurant margin.

Within its portfolio, the company owns and operates the Texas Roadhouse brand, Bubba’s 33, and Jaggers. Public communications note that the business has grown to more than 780–810 restaurants system-wide over time, reflecting ongoing development of new company restaurants and acquisitions of domestic franchise restaurants. The company highlights that it has opened new company restaurants and franchise restaurants across its brands and has completed acquisitions of multiple domestic franchise locations, which are then integrated into its company-operated base.

Casual dining focus and menu positioning

Texas Roadhouse is described as a moderately priced, full-service, casual dining restaurant concept. The Polygon description notes that the Texas Roadhouse segment offers steaks, a selection of ribs, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads, and sandwiches. Separate public descriptions of the brand emphasize hand-cut steaks, made-from-scratch sides, fresh-baked bread, and a lively, family-friendly atmosphere. These characteristics position the concept within the casual dining category, with a focus on sit-down meals and table service.

In addition to in-restaurant dining, the company reports on to-go sales as part of its average weekly sales metrics, indicating that off-premise sales are a tracked component of restaurant and other sales. Comparable restaurant sales performance and restaurant margin are key measures the company uses to evaluate restaurant-level operating efficiency across reporting periods.

Franchising, international presence, and retail initiatives

Texas Roadhouse, Inc. reports that its system includes restaurants in 49 states, one U.S. territory, and ten foreign countries. International franchising and development activities are overseen by a dedicated leadership role described as President of International, who also has responsibility for the Jaggers brand. The company’s disclosures indicate that international growth is primarily franchise-based, with the company receiving royalties and fees from international franchisees.

Beyond its core restaurant operations, Texas Roadhouse, Inc. has identified retail initiatives as an operating segment. Public communications describe licensed retail products such as Mini Rolls, Buttery Spreads, and a line of refrigerated dairy dips inspired by its appetizers, produced and distributed under license by West Madison Foods. These products extend the Texas Roadhouse brand into retail channels, allowing guests to experience flavors associated with the restaurants in other settings.

Restaurant-level economics and key metrics

In its earnings releases and SEC filings, Texas Roadhouse, Inc. provides detailed restaurant-level financial information. The company reports restaurant and other sales, royalties and franchise fees, total revenue, restaurant operating costs, and income from operations. It also discloses non-GAAP metrics such as restaurant margin, defined as restaurant and other sales less restaurant-level operating costs including food and beverage, labor, rent, and other operating costs.

The company explains that restaurant margin is widely regarded as a metric to evaluate restaurant-level operating efficiency and performance over time. In calculating restaurant margin, Texas Roadhouse, Inc. excludes certain items such as pre-opening expenses, general and administrative expenses, depreciation and amortization, and impairment and closure costs, which it views as not directly reflective of ongoing restaurant-level operating performance.

Growth, development, and capital allocation

Texas Roadhouse, Inc. emphasizes growth through new store development and strategic franchise acquisitions. Its quarterly and annual results highlight the number of new company restaurants opened, the number of new franchise restaurants opened, and the number of franchise restaurants acquired. The company also discusses store week growth, which reflects the expansion of its operating base over time.

Capital allocation disclosures show that the company deploys cash toward capital expenditures for new restaurants and maintenance of existing locations, acquisitions of franchise restaurants, payment of quarterly cash dividends, and repurchases of common stock. The Board of Directors has authorized stock repurchase programs and has periodically increased the quarterly dividend, reflecting a stated capital allocation approach that balances development, acquisitions, and returns of capital to shareholders.

Corporate governance and leadership

Texas Roadhouse, Inc. is incorporated in Delaware and files periodic and current reports with the U.S. Securities and Exchange Commission. Its Board of Directors oversees executive appointments and succession planning. Recent 8-K filings describe appointments and role changes for senior executives, including the Chief Executive Officer, Executive Vice Chairman, Chief Growth Officer, Chief Accounting and Financial Services Officer, Chief Financial Officer, and President of International. These filings detail employment agreements, incentive structures, equity awards, and non-competition and other restrictive covenants.

The company’s leadership disclosures also highlight the experience of key executives in restaurant operations, finance, international franchising, and brand development. For example, executives have backgrounds in multi-unit restaurant management, international development, and finance roles at other restaurant companies, which the Board cites as relevant to overseeing the company’s casual dining and franchising operations.

Recognition and brand positioning

Public communications about Texas Roadhouse note that it has been recognized in external rankings and awards. The company has been described as one of America’s top casual dining restaurant chains based on industry rankings, and it has received recognition such as inclusion in Fortune Magazine’s list of Most Admired Companies and being named among USA Today’s Customer Service Champions. These recognitions are cited in connection with the brand’s reputation for generous portions, reasonable prices, and a lively, family-friendly atmosphere.

Risk factors and operating environment

In its forward-looking statements and risk factor references, Texas Roadhouse, Inc. identifies a range of factors that can affect its results. These include weather, natural disasters, disease outbreaks, epidemics or pandemics that impact customers or food supplies, labor or supply chain shortages, changes in consumer discretionary spending and macroeconomic conditions such as inflationary pressures and tariffs, and food safety or food-borne illness concerns. The company directs investors to the Risk Factors section of its Annual Report on Form 10-K for a detailed discussion of these and other risks.

Through its combination of company-operated restaurants, franchised locations, international development, and retail licensing, Texas Roadhouse, Inc. presents itself as a growing casual dining restaurant company with multiple concepts and a focus on restaurant-level performance metrics, brand development, and disciplined capital allocation.