Texas Roadhouse (NASDAQ:TXRH) Announces Earnings Results

06 Nov 2026, 00:57 by Kim Johansen · The Markets Daily

Texas Roadhouse (NASDAQ:TXRH – Get Free Report) posted its quarterly earnings results on Thursday. The restaurant operator reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.46 by ($0.10), FiscalAI reports. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%. The business had revenue of $1.57 billion for the quarter, compared to analysts’ expectations of $1.58 billion.

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

Third-quarter revenue grew 9.5% to $1.6 billion, with comparable sales up 4.3% on 0.7% traffic growth. Restaurant margin increased 30 basis points to 14.6%, and diluted EPS rose 8.6% to $1.36.
Comps slowed to 1% in September after stronger July and August results; management attributed some weakness to a false social-media hoax. Fourth-quarter comps were up 1.5% through five weeks, with sequential improvement reported, though holiday shifts are expected to reduce quarterly comp growth by about 75 basis points.
Management expects 2026 commodity inflation of about 5% and labor inflation of 3.5%–4%; for 2027, it forecasts commodity inflation of about 4% and labor inflation of about 3%. The company said lower food-cost pressure and sales leverage helped improve third-quarter restaurant margins.
The company remains on track for about 35 restaurant openings in 2026 and plans about 35 more in 2027, while franchise partners are targeting roughly 10 openings in 2027. Development agreements in Vietnam and Japan add to international growth opportunities, although planned capital expenditures rise to about $440 million in 2026 and $425 million in 2027.

Texas Roadhouse Price Performance

Shares of TXRH stock traded down $4.66 during mid-day trading on Thursday, hitting $191.79. 2,453,260 shares of the stock were exchanged, compared to its average volume of 1,087,943. The firm has a fifty day moving average of $173.05 and a 200 day moving average of $179.11. The company has a quick ratio of 0.39, a current ratio of 0.46 and a debt-to-equity ratio of 0.03. Texas Roadhouse has a 52-week low of $153.82 and a 52-week high of $216.30. The company has a market cap of $12.59 billion, a PE ratio of 30.69, a price-to-earnings-growth ratio of 2.00 and a beta of 0.81.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $235.00 price objective on shares of Texas Roadhouse in a research note on Monday, August 3rd. Barclays lowered Texas Roadhouse from an “equal weight” rating to a “cautious” rating in a research note on Wednesday, October 14th. Morgan Stanley upped their target price on Texas Roadhouse from $212.00 to $221.00 and gave the stock an “overweight” rating in a research note on Thursday, October 15th. Stephens raised Texas Roadhouse from an “equal weight” rating to an “overweight” rating and set a $205.00 target price on the stock in a report on Thursday, October 15th. Finally, Evercore set a $220.00 target price on Texas Roadhouse in a report on Friday, September 25th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Texas Roadhouse currently has an average rating of “Moderate Buy” and an average target price of $206.32.

Get Our Latest Analysis on TXRH

Insider Activity

In related news, insider Lloyd Marshall sold 500 shares of Texas Roadhouse stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $204.65, for a total value of $102,325.00. Following the completion of the transaction, the insider owned 9,826 shares in the company, valued at $2,010,890.90. The trade was a 4.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Hugh Carroll sold 650 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $203.99, for a total value of $132,593.50. Following the completion of the transaction, the director directly owned 2,883 shares of the company’s stock, valued at $588,103.17. The trade was a 18.40% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 19,970 shares of company stock worth $4,061,808. 0.50% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Texas Roadhouse

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

Positive Sentiment: The company declared a quarterly dividend of $0.75 per share. Texas Roadhouse third-quarter results and dividend announcement
Neutral Sentiment: Quarterly earnings were $1.36 per share, up from $1.25 a year earlier, though the increase was not enough to meet analysts’ expectations. Texas Roadhouse misses Q3 earnings and revenue estimates
Negative Sentiment: TXRH reported EPS of $1.36, below estimates of $1.46–$1.49, while revenue of $1.57 billion also missed the roughly $1.58 billion consensus. Softer traffic adds to concerns about demand and helps explain the stock’s weakness. Texas Roadhouse reports third-quarter results despite softer traffic

Texas Roadhouse Company Profile

(Get Free Report)

Texas Roadhouse, Inc (NASDAQ: TXRH) operates full-service casual dining restaurants under the Texas Roadhouse, Bubba’s 33 and Jaggers brands. Its restaurants serve made-from-scratch meals centered on hand-cut steaks, ribs, chicken, seafood, burgers and other American-style dishes, along with freshly baked rolls and a selection of beverages.