Core Viewpoint - Texas Roadhouse Inc. reported fourth-quarter results that fell short of analyst expectations, leading to a decline in share price Financial Performance - The company posted diluted earnings per share of $1.28, below the consensus estimate of $1.52 [1] - Revenue totaled $1.48 billion, slightly under the projected $1.5 billion [1] Sales and Margins - Comparable sales at company-owned restaurants increased by 4.2%, with average weekly sales reaching $160,021 [2] - Restaurant margins contracted by 309 basis points to 13.9%, impacted by 9.5% commodity inflation and higher labor expenses [2] Future Outlook - Texas Roadhouse expects store week growth of 5% to 6% by 2026 [3] - Comparable sales in the first seven weeks of the year rose by 8.2% [3] - The company plans to implement a menu price increase of approximately 1.9% in early April to counter ongoing commodity inflation of roughly 7% [3]

Texas Roadhouse ( TXRH ) is off to a great start this year, having gained 10% in less than two months. Surely, as investors rotate out of the AI hyperscalers and software companies, they realize that beef is here to stay and that no AII’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash ...

Texas Roadhouse ( TXRH ) is off to a great start this year, having gained 10% in less than two months. Surely, as investors rotate out of the AI hyperscalers and software companies, they realize that beef is here to stay and that no AII’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash ...

And so now to help us make sense of some of the moves we're seeing of course just off off the open we're now joined by Diane King Hall host for the Schwab network. And so Diane, first and foremost, thank you so much for being with us this morning. I mean let's start with some of these individual movers like Texas Roadhouse for example, which is I mean seeing some quarterly numbers that were a bit all over the place, but definitely not seeing an evenness from that consumer which has been the case for a lot o ...

Industry Overview - Diners are shifting from higher-priced fast food to full-service restaurants as households reconsider their spending habits, leading to a significant rotation in restaurant traffic [1] - The casual dining segment is gaining market share, although steakhouses are still pressured by high beef prices, which are expected to slow down in the latter half of the year, potentially benefiting margins by late 2027 [2] Company Performance: Texas Roadhouse - Texas Roadhouse operates over 600 steakhouses and has shown consistent traffic, outperforming rivals [3] - In the most recent quarter, same-store sales increased by 6.1%, with guest counts up by 4.3%, attributed to a disciplined strategy avoiding aggressive discounting [4] - Restaurant-level margins declined by nearly 170 basis points due to higher beef prices and labor-cost inflation, but management expects easing inflationary pressures in the latter half of the year [5] - The company plans to open 35 new locations in 2026, with a current valuation reflecting some margin recovery, trading at 28 times forward earnings [6] Company Performance: Darden Restaurants - Darden Restaurants operates over 2,100 locations, including brands like Olive Garden and LongHorn Steakhouse, and has seen shares rise by about 11% following a 4.3% comps growth in Q2 2026 [8] - LongHorn Steakhouse reported a stronger performance with comps rising by 5.9%, capturing market share from more expensive steakhouses [9] - Darden's scale allows it to maintain competitive pricing, keeping prices around 320 basis points below inflation at LongHorn, providing a competitive edge [9] Company Performance: Brinker International - Brinker International, which owns over 1,600 restaurants including Chili's, has seen its stock rise 60% since November lows, with Chili's reporting 8.6% comps growth in January [10] - The growth is driven by budget-friendly offerings like the 3 for Me platform, attracting cost-conscious diners [12] - Brinker is increasing its advertising to emphasize its value over fast-food competitors, trading at around 15 times this year's earnings estimates, making it the best value among the three chains discussed [13]

Texas Roadhouse (TXRH) came out with quarterly earnings of $1.28 per share, missing the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.50%. A quarter ago, it was expected that this restaurant chain would post earnings of $1.28 per share when it actually produced earnings of $1.25, delivering a surprise of -2.34%.Over the last four quarters, th ...

Financial Data and Key Metrics Changes - In 2025, revenue grew to nearly $5.9 billion, marking a successful year with all three brands achieving positive sales and traffic growth [6] - Same-store sales increased by 4.9% for the full year, with traffic growth of 2.8% [14] - Consolidated average unit volume exceeded $8.4 million, with average weekly sales of over $166,000 at Texas Roadhouse [14] - For the fourth quarter of 2025, revenue growth was reported at 3.1%, driven by a 4% increase in average weekly sales [18] - Diluted earnings per share decreased by 26.1% to $1.28 in the fourth quarter [18] Business Line Data and Key Metrics Changes - Texas Roadhouse achieved average weekly sales of over $166,000, while Bubba's 33 and Jaggers reported average weekly sales of $122,000 and nearly $73,000, respectively [14] - The company opened 48 new restaurants in 2025, including 28 new store openings and the acquisition of 20 franchise locations [7] - The company plans to open approximately 35 company restaurant locations across three brands in 2026 [7] Market Data and Key Metrics Changes - The company experienced a 1.9% menu price increase planned for the second quarter of 2026 [8] - Commodity inflation guidance for 2026 is approximately 7%, with beef inflation accounting for nearly all expected commodity inflation [16] - Labor inflation is expected to remain at 3%-4% for 2026 [16] Company Strategy and Development Direction - The company aims to maintain its focus on legendary food and service while navigating commodity inflation challenges [8] - The rollout of the Digital Kitchen and upgraded Guest Management Systems is expected to enhance operational efficiency and customer experience [9] - The company is committed to expanding its restaurant base and enhancing guest experiences through technology and menu innovations [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that commodity inflation will continue to be a headwind but remains committed to long-term growth strategies [8] - The company is optimistic about its ability to drive top-line growth despite current cost pressures [15] - Management expressed confidence in the long-term strategy and the potential for continued success in the coming years [15] Other Important Information - The company ended 2025 with over $130 million in cash and generated over $730 million in cash flow from operations [15] - A 10% increase in the quarterly dividend was announced, bringing it to $0.75 per quarter [17] - The company raised over $40 million for local schools and nonprofit organizations through community initiatives [6] Q&A Session Summary Question: Impact of December sales slowdown - Management acknowledged that December's sales slowdown was influenced by weather conditions and resulted in a higher ratio of labor hours versus traffic [28][31] Question: Long-term beef inflation outlook - Management indicated that beef inflation is expected to remain a challenge, with no immediate relief anticipated [30][32] Question: Digital Kitchen rollout impact - The Digital Kitchen has improved operational efficiency, allowing for increased focus on to-go business [34][36] Question: Pricing strategy for 2026 - The company plans to implement a 1.9% menu price increase, with a focus on maintaining value for customers [40][41] Question: Tax refunds and consumer spending - Management noted that larger-than-expected tax refunds could potentially drive incremental consumption [46] Question: G&A guidance breakdown - The increase in G&A is primarily due to new long-term management equity grants and higher forecasted incentive compensation [80][82] Question: Handheld ordering system testing - The handheld ordering system is being refined and tested, with plans for broader implementation later in the year [59][60]

Texas Roadhouse (NasdaqGS:TXRH) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Company ParticipantsDavid Palmer - Senior Managing DirectorDennis Geiger - Executive DirectorJacob Aiken-Phillips - VP Equity ResearchJeff Farmer - Managing DirectorJerry Morgan - CEOKeith Humpich - Chief Accounting and Financial Services OfficerMichael Bailen - VP of Investor RelationsMike Lenihan - CFORahul Krotthapalli - VP, Equity ResearchConference Call ParticipantsAndrew Charles - Managing Director and Research Analyst ...

Texas Roadhouse (NasdaqGS:TXRH) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Speaker15Good evening, and welcome to the Texas Roadhouse fourth quarter earnings conference call. Today's call is being recorded. All participants are now in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. At that time, if you would like to ask a question, please press star, then the number one on your telephone keypad. Should anyone need assistance at any time during the confer ...

U.S. equity markets experienced a volatile session on Thursday, February 19th, 2026, as investors weighed surprisingly resilient labor market data against a cautious full-year outlook from the world’s largest retailer. Despite a significant beat in weekly jobless claims, the major indexes struggled to maintain early momentum, ultimately drifting lower as concerns over consumer spending and geopolitical tensions in the Middle East dampened risk appetite.Major Market Indexes Performance RecapThe major benchma ...