Texas Roadhouse AI Stock Analysis
Want to see TXRH full AI Analyst Report?
Texas Roadhouse (TXRH) AI Stock Analysis
Texas Roadhouse
(NASDAQ:TXRH)
TXRH scores well on financial performance and recent earnings-call execution signals (solid growth, healthy profitability, and a strong unit-expansion pipeline). Technicals are supportive with an established uptrend, but near-overbought indicators temper the outlook. The main drag is valuation, with a premium P/E that leaves less room for error given recent margin pressure and free-cash-flow volatility.
Texas Roadhouse Key Performance Indicators (KPIs)
Restaurant CountShows the total number of Texas Roadhouse locations, indicating the company’s expansion strategy and market penetration.
Texas Roadhouse has shifted from recovery to deliberate scale‑up: management is accelerating net unit growth through new company openings and opportunistic franchise acquisitions (pushing the system past 800), which supports revenue and leverages high AUVs, but rising build costs, heavy capex and a credit draw to fund acquisitions raise near‑term cash and margin risk. The critical investor watch is whether pricing, digital/operational gains and disciplined development can offset front‑loaded beef-driven commodity inflation and protect restaurant margin percentages as the chain expands.
The FlyTexas Roadhouse (TXRH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $12.36B
- Dividend Yield
- 1.56%
- Average Volume (3M)
- 1.14M
- Price to Earnings (P/E)
- 29.6
- Beta (1Y)
- 0.43
- Revenue Growth
- 9.16%
- EPS Growth
- -3.02%
- Country
- US
- Employees
- 101,000
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
Texas Roadhouse Business Overview & Revenue Model
Company Description
Texas Roadhouse, Inc., through its various subsidiaries, is actively engaged in the casual dining sector, managing restaurants both within the United States and on a global scale. The company's portfolio encompasses establishments operating under its...
How the Company Makes Money
Texas Roadhouse makes money primarily by selling food and beverages to guests at its restaurants. Revenue is driven by customer traffic and average check size, which includes entrées, appetizers, desserts, and beverage alcohol sales where permitted....
Texas Roadhouse Earnings Call Summary
The call was broadly positive, with strong companywide comparable sales and traffic, revenue and EPS growth, improved restaurant margins, a robust development pipeline, favorable Bubba's 33 performance, international expansion and sequential sales improvement entering the fourth quarter. The main negatives were the temporary sales impact from the false social media allegations, September's slowdown, holiday calendar headwinds, ongoing commodity and labor inflation, and a recovery that has taken longer than some expected. Positive developments significantly outweighed the stated challenges.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management expects over 15 openings scheduled for the fourth quarter and remains on track to open approximately 35 restaurants across the 3 brands in 2026, with approximately 35 company-owned restaurants across the 3 brands planned for 2027 and 18 restaurants already under construction; franchise partners are planning to open approximately 10 new restaurants in 2027, including as many as 8 international Texas Roadhouses. Full year 2026 commodity inflation guidance remains at approximately 5%, fourth quarter commodity inflation is expected to be approximately 4.5%, and 2027 commodity inflation guidance is approximately 4%; 2026 wage and other labor inflation guidance is 3.5% to 4%, and 2027 guidance is approximately 3%. 2026 capital expenditure guidance is approximately $440 million and 2027 capital expenditure guidance is approximately $425 million, while full year 2026 G&A dollar expense is expected to increase a low double-digit percentage and total depreciation dollar expense a low teen percentage; income tax rate guidance is approximately 13% for both 2026 and 2027. Fourth quarter same-store sales growth is expected to face an approximately 75 basis point negative impact from holiday shifts, Chicken Alfredo Pasta is expected to be system-wide by the spring menu, and the company plans to roll out mobile POS to approximately 200 more restaurants in 2027 and finish up probably in 2028 if everything continues to go well.
Texas Roadhouse Financial Statement Overview
Summary
Strong multi-year revenue growth and healthy profitability (TTM net margin ~6.6%, EBITDA margin ~11.3%) support a solid financial profile. Offsetting this are recent margin compression versus 2024–2025 highs and mixed cash-flow quality, with sharply weaker TTM free-cash-flow growth and FCF covering only about half of net income.
Income Statement
84Very PositiveBalance Sheet
74PositiveCash Flow
62Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.37B | 5.88B | 5.37B | 4.63B | 4.01B | 3.46B |
| Gross Profit | 1.21B | 729.92M | 947.26M | 735.08M | 653.63M | 606.50M |
| EBITDA | 722.90M | 687.40M | 695.90M | 507.47M | 459.03M | 424.69M |
| Net Income | 419.36M | 405.55M | 433.59M | 304.88M | 269.82M | 245.29M |
Balance Sheet | ||||||
| Total Assets | 3.69B | 3.55B | 3.19B | 2.79B | 2.53B | 2.51B |
| Cash, Cash Equivalents and Short-Term Investments | 141.41M | 134.71M | 245.22M | 104.25M | 173.86M | 335.64M |
| Total Debt | 1.12B | 974.02M | 854.47M | 770.89M | 753.36M | 744.84M |
| Total Liabilities | 2.08B | 2.07B | 1.82B | 1.64B | 1.50B | 1.44B |
| Stockholders Equity | 1.59B | 1.46B | 1.36B | 1.14B | 1.01B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 402.76M | 342.07M | 399.29M | 217.95M | 265.60M | 268.13M |
| Operating Cash Flow | 806.35M | 730.07M | 753.63M | 564.98M | 511.73M | 468.83M |
| Investing Cash Flow | -473.67M | -480.52M | -336.90M | -367.17M | -263.73M | -195.10M |
| Financing Cash Flow | -299.44M | -360.07M | -275.75M | -267.43M | -409.77M | -301.23M |
Texas Roadhouse Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXRH, the sentiment is Positive. The current price of 188.36 is above the 20-day moving average (MA) of 178.43, above the 50-day MA of 172.35, and above the 200-day MA of 177.78, indicating a bullish trend. The MACD of 5.53 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXRH.
Texas Roadhouse Risk Analysis
Texas Roadhouse disclosed 35 risk factors in its most recent earnings report. Texas Roadhouse reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksTexas Roadhouse Peers Comparison
Overall Rating
EAT85Outperform
DRI77Outperform- TXRH76Outperform
BJRI67Neutral
CAKE61Neutral
BLMN50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| EAT | 85Outperform | $8.11B | 17.27 | 122.98% | ― | 6.07% | 16.71% |
| DRI | 77Outperform | $25.87B | 22.23 | 55.90% | 2.73% | 8.10% | 9.77% |
| TXRH | 76Outperform | $12.35B | 29.57 | 27.38% | 1.56% | 9.16% | -3.02% |
| BJRI | 67Neutral | $1.22B | 26.21 | 11.84% | ― | 5.26% | 56.29% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| CAKE | 61Neutral | $5.42B | 24.59 | 41.84% | 1.09% | 7.87% | 30.46% |
| BLMN | 50Neutral | $851.52M | 12.32 | 17.92% | ― | 1.07% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TXRH | Texas Roadhouse | 188.36 | 23.01 | 13.92% | |
| BJRI | BJ's Restaurants | 57.15 | 19.95 | 53.63% | |
| EAT | Brinker International | 200.73 | 83.57 | 71.33% | |
| DRI | Darden Restaurants, Inc. | 228.94 | 58.92 | 34.66% | |
| CAKE | Cheesecake Factory | 109.67 | 64.47 | 142.62% | |
| BLMN | Bloomin' Brands | 10.23 | 3.44 | 50.66% |
Texas Roadhouse Corporate Events
Texas Roadhouse Reports Strong Third-Quarter Results Despite Softer Traffic
PositiveTexas Roadhouse, Inc., a restaurant company operating company and franchise restaurants, reported third-quarter 2026 revenue of $1.57 billion, up 9.5% from a year earlier, while net income rose 7.4% to $89.4 million and diluted earnings per share inc...
Texas Roadhouse Reports Strong Revenue Growth, Reaffirms 2026 Outlook
PositiveTexas Roadhouse reported that for the 13 and 26 weeks ended June 30, 2026, total revenue rose 11.1% and 11.9% year over year, respectively, driven by comparable restaurant sales growth of 6.2% for the quarter and 6.7% year to date, as well as mid-sin...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 06, 2026