Texas Roadhouse Inc
NASDAQ:TXRH
Texas Roadhouse Inc
Texas Roadhouse Inc., founded in 1993 by W. Kent Taylor in Clarksville, Indiana, has carved out a distinctive niche in the casual dining sector. From its humble beginnings, the company has grown to become a beloved national steakhouse chain, renowned for offering an authentic Western dining experience. The establishment prides itself on providing hearty American fare at reasonable prices, focusing on hand-cut steaks, fall-off-the-bone ribs, and freshly baked bread, complete with a bucket of peanuts at every table. What sets Texas Roadhouse apart is its commitment to consistency in quality and service – attributes that resonate well with its customer base. By fostering a lively and welcoming atmosphere infused with country music and energetic line dancing, Texas Roadhouse seeks to create not just meals, but memorable experiences, encouraging repeat visits and strong word-of-mouth promotion.
Financially, Texas Roadhouse seizes revenue through its vibrant dine-in operations, which are the backbone of its business model. Each establishment enjoys a local management model, empowering managers to tailor their operations to community preferences while ensuring the overall brand consistency beloved by patrons nationwide. This decentralized approach promotes a sense of ownership and accountability that incentivizes high performance at every location. Additionally, efforts to cultivate a loyal customer base through exceptional service have translated into significant sales figures, augmented by strategically located restaurants that capitalize on high foot traffic and accessible suburban locales. Operational efficiency is further enhanced by effective supply chain management and keen oversight of cost control measures, allowing each restaurant to maximize margins while maintaining value-oriented pricing.
Texas Roadhouse Inc., founded in 1993 by W. Kent Taylor in Clarksville, Indiana, has carved out a distinctive niche in the casual dining sector. From its humble beginnings, the company has grown to become a beloved national steakhouse chain, renowned for offering an authentic Western dining experience. The establishment prides itself on providing hearty American fare at reasonable prices, focusing on hand-cut steaks, fall-off-the-bone ribs, and freshly baked bread, complete with a bucket of peanuts at every table. What sets Texas Roadhouse apart is its commitment to consistency in quality and service – attributes that resonate well with its customer base. By fostering a lively and welcoming atmosphere infused with country music and energetic line dancing, Texas Roadhouse seeks to create not just meals, but memorable experiences, encouraging repeat visits and strong word-of-mouth promotion.
Financially, Texas Roadhouse seizes revenue through its vibrant dine-in operations, which are the backbone of its business model. Each establishment enjoys a local management model, empowering managers to tailor their operations to community preferences while ensuring the overall brand consistency beloved by patrons nationwide. This decentralized approach promotes a sense of ownership and accountability that incentivizes high performance at every location. Additionally, efforts to cultivate a loyal customer base through exceptional service have translated into significant sales figures, augmented by strategically located restaurants that capitalize on high foot traffic and accessible suburban locales. Operational efficiency is further enhanced by effective supply chain management and keen oversight of cost control measures, allowing each restaurant to maximize margins while maintaining value-oriented pricing.
Revenue Growth: Texas Roadhouse reported 2025 revenue near $5.9 billion, with all brands posting positive sales and traffic growth.
Comparable Sales Streak: The company marked its 60th consecutive quarter of comparable restaurant sales growth (excluding 2020), extending a 15-year streak.
Margin and Earnings Pressure: Restaurant margin percentage and EPS fell in Q4 due to commodity inflation, higher food costs, and lapping an extra week last year, but margin dollars and income from operations remained historically high.
Menu Pricing: Management will implement a 1.9% menu price increase at the start of Q2 2026, with Q1 and Q2 pricing outlined at 3.1% and 3.6%, respectively.
2026 Guidance: Guidance for commodity inflation remains about 7% (mostly from beef), labor inflation at 3–4%, and capital expenditures at about $400 million; 35 new company-owned restaurants expected to open.
Strong Start to 2026: Comparable sales up 8.2% in the first 7 weeks of Q1 2026, with weekly sales averaging $170,000, despite some weather-related headwinds.
Technology Rollout: Digital kitchen and guest management systems are fully deployed; handheld order tablets are in expanded testing.
Dividend Increase: Quarterly dividend raised by 10% to $0.75.
