Texas Roadhouse (NASDAQ:TXRH) Issues Quarterly Earnings Results

Texas Roadhouse (NASDAQ:TXRH) posted its earnings results on Thursday. The restaurant operator reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.07, Zacks reports. Texas Roadhouse had a return on equity of 28.17% and a net margin of 6.85%.The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.64 billion. During the same quarter last year, the company earned $1.70 EPS. The company’s quarterly revenue was up 10.5% compared to the same quarter last year.

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

• Strong top-line and traffic — Q1 revenue topped $1.6B with same-store sales up 7.1% (traffic +4.5%) and diluted EPS of $1.87; early Q2 comps remain healthy (+6.5% in first five weeks).
• Commodity outlook improved — full?year commodity inflation guidance trimmed to 6%–7% (Q2 still expected to peak near 7%–8%); management says beef is the main ongoing risk but they have greater visibility into the back half of 2026.
• Margin pressure persists — restaurant margin as a % of sales fell 36 bps to 16.3% and food & beverage costs rose 122 bps (driven by commodity inflation), partially offset by pricing and labor productivity gains.
• Strong cash and growth flexibility — $215M in cash, $259M cash from operations, unchanged ~ $400M capex guide, ~35 company openings expected (weighted to back half) plus international/franchise expansion and ongoing capital returns.

Texas Roadhouse Price Performance

Shares of NASDAQ:TXRH traded up $19.37 during mid-day trading on Friday, reaching $177.30. 2,907,205 shares of the company traded hands, compared to its average volume of 1,098,754. The company’s 50 day moving average price is $166.81 and its 200-day moving average price is $172.64. The firm has a market cap of $11.69 billion, a PE ratio of 28.32, a PEG ratio of 1.81 and a beta of 0.77. Texas Roadhouse has a 52 week low of $153.82 and a 52 week high of $199.99.

Texas Roadhouse Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 2nd will be given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, June 2nd. Texas Roadhouse’s payout ratio is presently 49.26%.

Insider Activity at Texas Roadhouse

In other Texas Roadhouse news, President Regina A. Tobin sold 4,450 shares of the company’s stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $171.00, for a total value of $760,950.00. Following the completion of the transaction, the president directly owned 13,778 shares in the company, valued at $2,356,038. This represents a 24.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Donna E. Epps sold 850 shares of the stock in a transaction on Friday, March 6th. The stock was sold at an average price of $172.45, for a total transaction of $146,582.50. Following the completion of the sale, the director directly owned 4,892 shares of the company’s stock, valued at approximately $843,625.40. This trade represents a 14.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,988 shares of company stock worth $2,218,144 in the last 90 days. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Texas Roadhouse

Several large investors have recently made changes to their positions in the business. Compound Planning Inc. grew its holdings in Texas Roadhouse by 5.6% during the 4th quarter. Compound Planning Inc. now owns 1,408 shares of the restaurant operator’s stock valued at $234,000 after buying an additional 75 shares in the last quarter. Corient Private Wealth LLC grew its holdings in Texas Roadhouse by 125.4% during the 4th quarter. Corient Private Wealth LLC now owns 33,574 shares of the restaurant operator’s stock valued at $5,573,000 after buying an additional 18,680 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its stake in Texas Roadhouse by 79.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,060 shares of the restaurant operator’s stock valued at $3,496,000 after purchasing an additional 9,334 shares in the last quarter. Vident Advisory LLC boosted its holdings in shares of Texas Roadhouse by 7.4% in the 4th quarter. Vident Advisory LLC now owns 1,401 shares of the restaurant operator’s stock worth $233,000 after purchasing an additional 97 shares during the period. Finally, NewEdge Advisors LLC lifted its stake in Texas Roadhouse by 15.5% in the fourth quarter. NewEdge Advisors LLC now owns 3,162 shares of the restaurant operator’s stock worth $525,000 after purchasing an additional 424 shares during the last quarter. 94.82% of the stock is currently owned by hedge funds and other institutional investors.

Key Texas Roadhouse News

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

• Positive Sentiment: Texas Roadhouse reported first-quarter EPS of $1.87, ahead of consensus estimates, while revenue rose 10.5% year over year to $1.63 billion, signaling continued demand for its restaurants.
• Positive Sentiment: The company raised its quarterly dividend to $0.75 per share, reinforcing management’s confidence in cash generation and giving income-focused investors a larger payout.
• Positive Sentiment: Several market headlines pointed to the stock surging after the earnings release, suggesting investors viewed the quarter as better than expected overall, despite a slight revenue miss versus estimates.
• Neutral Sentiment: Analysts and commentary were mixed on the report: earnings were strong, but revenue came in slightly below expectations, keeping some caution around how much upside is left after the post-earnings move.
• Neutral Sentiment: A Seeking Alpha piece on May 8 upgraded the stock, but described upside potential as only moderate, implying the shares may be fairly valued after the recent run-up. Texas Roadhouse: It Hasn’t Bottomed Out Yet, But Upside Potential Is Medium Well (Rating Upgrade)

Wall Street Analysts Forecast Growth

TXRH has been the subject of a number of research analyst reports. Wall Street Zen downgraded shares of Texas Roadhouse from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Morgan Stanley reaffirmed an “overweight” rating and issued a $201.00 price objective on shares of Texas Roadhouse in a report on Friday. BTIG Research reiterated a “buy” rating and set a $200.00 price objective on shares of Texas Roadhouse in a research report on Friday, February 20th. Citigroup lowered their target price on Texas Roadhouse from $176.00 to $174.00 and set a “neutral” rating on the stock in a report on Friday. Finally, KeyCorp restated a “sector weight” rating on shares of Texas Roadhouse in a research note on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Texas Roadhouse currently has a consensus rating of “Hold” and an average target price of $193.90.

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.