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EarningsQ2 2026 Earnings Report
TXRH Q2 2026 EPS Results
Actual EPS$1.85
Consensus EPS$1.83
Beat/MissBeat by +$0.02
One Year Ago EPS$1.86
TXRH Q2 2026 Revenue Results
Actual Revenue$1.68B
Expected Revenue$1.67B
Beat/MissBeat by +$5.86M
YoY Revenue Growth+11.11%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
TXRH Upcoming Earnings
Texas Roadhouse's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
TXRH Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported double-digit revenue growth, 6.2% comparable-sales growth with 3% traffic growth, record average weekly sales, strong restaurant development, positive labor productivity, and lower full-year commodity inflation guidance. The main negatives were a 0.7% EPS decline, restaurant margin-rate compression, higher food costs, elevated G&A and depreciation expense, tight beef supply, negative mix, and an expected 75-basis-point fourth-quarter holiday-calendar headwind.Company Guidance
Strong Revenue and Comparable Sales Growth
Second-quarter revenue approached $1.7 billion and increased 11.1%, driven primarily by a 5.9% increase in average weekly sales and a 5% increase in store weeks. Comparable sales increased 6.2%, including 3% traffic growth and a 3.2% increase in average check.
Record Average Weekly Sales
Company-wide second-quarter average weekly sales exceeded $175 thousand for the first time in the company's 33-year history. Reported average weekly sales were over $177 thousand, with company restaurants exceeding $183 thousand.
Continued Third-Quarter Momentum
Comparable sales were up 6.2% during the first five weeks of the third quarter, with restaurants averaging weekly sales of $168 thousand.
Positive Traffic and To-Go Trends
Dining-room same-store and mix trends were positive, and the company maintained an impressive growth rate in its to-go business. To-go sales represented more than $25 thousand, or 14.3%, of total weekly sales in the second quarter.
Texas Roadhouse Brand Scale and Expansion
Texas Roadhouse ended the quarter with 755 system-wide locations across the United States and 10 foreign countries. The company expects to open approximately 20 Texas Roadhouse restaurants in 2026 and said its development pipeline is full for 2026, 2027, and 2028, with work already progressing into 2029.
Strong Company-Owned Development Pipeline
The company remains on track for approximately 35 company-owned openings in 2026, including nine in the second quarter: five Texas Roadhouse restaurants, three Bubba's 33 restaurants, and one Jaggers restaurant. Six openings are scheduled for the third quarter and the remaining 26 are planned for the fourth quarter.
Bubba's 33 Expansion and New-Unit Performance
Bubba's 33 ended the quarter with 59 restaurants in 16 states and celebrated the opening of its 60th location in Iowa. Average weekly sales exceeded $129 thousand, recent openings continued to perform very well, and the company expects to open at least 10 restaurants this year while maintaining a low double-digit pace for the next several years.
Jaggers Performance and Growth
Jaggers weekly sales exceeded $76 thousand in the quarter, and the company opened its 11th company location. The company expects four total Jaggers company openings in 2026, with the remainder of this year's company growth focused in existing markets. Management said a mix of franchise partners and company ownership is beneficial for the brand at its current stage.
Additional Franchise Expansion
Franchise partners opened one international Texas Roadhouse during the second quarter. The company expects as many as five more international openings and two domestic Jaggers franchise openings in the second half of 2026.
Holiday Sales Execution
Ninety percent of restaurants set a daily sales record on at least one of Mother's Day, Father's Day, or Valentine's Day in 2026. A handful of restaurants recorded single-day sales exceeding $100 thousand on one of those holidays.
Commodity Inflation Guidance Reduced
Second-quarter commodity inflation was 7%, at the bottom end of the forecasted range. The company reduced full-year 2026 commodity inflation guidance from between 6%-7% to approximately 5%, expects 2%-3% inflation in the third quarter, and approximately 5% in the fourth quarter. Lower sirloin prices were identified as the biggest driver of the improvement.
Labor Productivity and Cost Control
Second-quarter labor inflation was 3.9%, in line with expectations, while full-year wage and other labor inflation guidance was maintained at 3%-4%. Labor hours grew at approximately 25% of comparable traffic growth. Labor as a percentage of sales improved 40 basis points to 32.5%, and other operating costs improved 28 basis points to 14.2% of sales.
Restaurant Margin Dollar Growth
Restaurant margin dollars increased 6.9% year over year to $275 million. Restaurant margin dollars per store week increased 1.9% to over $29 thousand.
Lower Tax Rate Guidance
The effective tax rate for the quarter was 13.5%. Full-year 2026 income tax rate guidance was reduced from between 14%-15% to approximately 14%.
Capital Investment and Restaurant Development
The company generated $180 million of operating cash flow in the second quarter and maintained its 2026 capital expenditure guidance of approximately $400 million. Capital allocation continues to prioritize new restaurant development and maintaining existing restaurants.
Technology and Operating Initiatives
Management attributed labor productivity to multiple initiatives working together, including quieter kitchens, technology investments, pay-at-the-table, guest management system upgrades, digital kitchens, and the continued growth of the to-go business.
California and Long-Term Market Opportunity
Texas Roadhouse has 20 California restaurants open and six in development. Management said it continues to identify California markets and sees sales opportunities despite the complexities of operating in the state.
Marketing and Local Community Strategy
The company continues to use a local-store-marketing and grassroots approach rather than national television advertising, emphasizing community engagement, local partnerships, legendary food, and legendary service.
Labor Availability and Managing Partner Pipeline
Management said it has no concerns about staffing existing or new restaurants and does not currently anticipate changes to its compensation plan. The company said its managing partner program is very strong and that new managers can be promoted internally or recruited in new communities.
World Cup Brand Exposure
The World Cup did not produce a significant measurable sales impact across the portfolio in the second quarter, but management said social media posts from international visitors experiencing Texas Roadhouse for the first time were helpful for international sales efforts.
TXRH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed