Core Insights - Texas Roadhouse reported $1.44 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 12.8% [1] - The EPS for the same period was $1.25, slightly down from $1.26 a year ago, with an EPS surprise of -2.34% against the consensus estimate of $1.28 [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $1.43 billion by 0.57% [1] - Comparable restaurant sales growth for company restaurants was 6.1%, surpassing the estimated 5.3% [4] - Franchise-owned restaurants saw a comparable sales growth of 7.2%, exceeding the 5.9% estimate [4] Restaurant Metrics - Total company restaurants at the end of the quarter were 702, slightly below the average estimate of 703 [4] - Total restaurants, including franchises, were 806, compared to the estimated 807 [4] - The number of company restaurants opened was 7, against an average estimate of 8 [4] Revenue Breakdown - Revenue from franchise royalties and fees was $7.23 million, lower than the $7.76 million average estimate, reflecting a year-over-year decline of 6.3% [4] - Revenue from restaurant and other sales was $1.43 billion, slightly above the $1.42 billion estimate, with a year-over-year increase of 13% [4] Stock Performance - Texas Roadhouse shares returned -0.1% over the past month, while the Zacks S&P 500 composite increased by 1.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market [3]

Financial Data and Key Metrics Changes - The company reported revenue growth of 12.8% for the third quarter, driven by a 5.5% increase in average weekly sales and 6.8% store week growth [16] - Diluted earnings per share decreased by 0.8% to $1.25, while restaurant margin dollars increased by 1.1% to $204 million [16][17] - Average weekly sales were over $157,000, with to-go sales representing approximately 13.6% of total weekly sales [16] Business Line Data and Key Metrics Changes - All three brands (Texas Roadhouse, Bubba's 33, and Jaggers) delivered same-store sales growth, with Texas Roadhouse averaging nearly $162,000 in weekly sales [12] - Bubba's 33 averaged $119,000 in weekly sales, while Jaggers exceeded $75,000 [12] - Comparable sales increased by 6.1% in the third quarter, driven by 4.3% traffic growth and a 1.8% increase in average check [16] Market Data and Key Metrics Changes - The company opened seven company-owned locations in the third quarter and plans to open approximately 30 restaurants across three brands in 2025 [7] - Franchise partners opened two international Texas Roadhouse restaurants during the third quarter, with plans for one more in the fourth quarter [7] - The company expects to open approximately 35 company-owned restaurants in 2026, including 20 Texas Roadhouse, 10 Bubba's 33, and up to five Jaggers [7] Company Strategy and Development Direction - The company maintains a people-first focus, value proposition, and operational excellence as key components of its long-term success [6] - The company is committed to expanding its restaurant base while driving top-line growth through guest traffic [10] - The company is also focusing on enhancing its retail presence, with products available in over 120,000 retail outlets [9] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior remains strong, with no noticeable change following a 1.7% menu price increase [8] - The company is setting initial 2026 commodity inflation guidance at approximately 7%, with expectations of volatility in beef prices [13] - Management expressed confidence in the long-term health of the business, emphasizing a commitment to its mission and values [11] Other Important Information - The company ended the third quarter with a cash balance of $108 million and cash flow from operations of $144 million [14] - Capital expenditures for 2026 are expected to be approximately $400 million, excluding the cost of acquiring California franchise restaurants [15] Q&A Session Summary Question: Clarification on beef inflation outlook - Management indicated that beef inflation might be in the mid-teens if the overall commodity basket is up in high single digits, with expectations based on current trends [23][26] Question: Confidence in transitory vs. structural beef pricing - Management believes the current beef pricing situation is cyclical and transitory, based on industry insights [34][35] Question: Consumer behavior by income and age cohort - Management noted no significant differences in consumer behavior by income or age cohort, emphasizing the value offered across the menu [38][40] Question: Pricing philosophy and managing partner compensation - Management stated that compensation is tied to sales and profits, and they will continue to monitor and adjust as necessary [46][48] Question: Restaurant profit dollars and inflation impact - Management acknowledged the decline in restaurant profit dollars per location and indicated a conservative approach to pricing to protect margins [55][58] Question: New customer acquisition and competition - Management believes they are attracting customers from various segments, including higher-end steakhouses and QSRs, due to their reputation and dining experience [62][64] Question: Franchise acquisitions and CapEx balance - Management confirmed ongoing conversations for franchise acquisitions and explained that CapEx for 2026 is comparable to 2025 due to efficiency in openings [76][78]

Financial Data and Key Metrics Changes - The company reported revenue growth of 12.8% for the third quarter, reaching over $1.4 billion, driven by a 5.5% increase in average weekly sales and 6.8% store week growth [16][6] - Diluted earnings per share decreased by 0.8% to $1.25, while restaurant margin dollars increased by 1.1% to $204 million [16][12] - Comparable sales increased by 6.1%, supported by a 4.3% traffic growth and a 1.8% increase in average check [16][12] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged nearly $162,000 in weekly sales, Bubba's 33 averaged $119,000, and Jaggers averaged over $75,000 [12] - The company opened seven company-owned locations in the third quarter, including two Bubba's 33 and one Jaggers, and plans to open approximately 30 restaurants across three brands in 2025 [7][8] Market Data and Key Metrics Changes - The company has seen a positive consumer response to its beverage offerings, including mocktails and regional beverage menu items [8][9] - The to-go business continues to show solid momentum, with operators focusing on speed and order accuracy [9] Company Strategy and Development Direction - The company aims to maintain its focus on driving top-line growth through guest traffic and restaurant expansion, while also investing in employee development to remain an employer of choice [10][11] - The company plans to acquire its remaining California franchise locations at the beginning of 2026 and expects franchise partners to open 10 new restaurants [8][15] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation in the third quarter was higher than expected due to beef prices, updating the full-year 2025 commodity inflation guidance to approximately 6% [12][13] - The company remains optimistic about its long-term success, emphasizing its people-first focus and operational excellence [6][11] Other Important Information - The company ended the third quarter with a cash balance of $108 million and cash flow from operations of $144 million, offset by $214 million in capital expenditures, dividend payments, and share repurchases [14][15] - The company is establishing its initial 2026 capital expenditure guidance at approximately $400 million, excluding the cost of acquiring California franchise restaurants [15] Q&A Session Summary Question: Clarification on beef inflation outlook - Management indicated that they expect mid-teens beef inflation if the commodity basket is up high single digits, with a focus on managing pricing strategies [23][25] Question: Confidence in beef pricing being transitory - Management believes the current beef pricing situation is cyclical and transitory, based on industry insights and cattle cycles [33][34] Question: Consumer behavior by income cohort - Management noted no significant differences in consumer behavior by income or age cohort, emphasizing the value offered across the menu [37][39] Question: Pricing philosophy and managing partner compensation - Management discussed their conservative pricing approach to protect top-line growth and ensure fair compensation for managing partners [44][46] Question: Unit growth and market expansion for Bubba's - Management confirmed that most growth for Bubba's will occur in existing markets, with a focus on maintaining strong partnerships [86][88] Question: Cash uses and franchise acquisitions - Management stated that approximately 30 franchises remain for potential acquisition after completing the California acquisition [75][76] Question: Labor and operating expenses outlook - Management expects continued leverage on labor and operating expenses if top-line trends remain strong [81][82] Question: Impact of grocery store beef prices on customer behavior - Management acknowledged that high grocery store beef prices are likely driving customers to dine out more, recognizing the value of their steak offerings [84][85]

Core Viewpoint - Texas Roadhouse reported quarterly earnings of $1.25 per share, missing the Zacks Consensus Estimate of $1.28 per share, representing an earnings surprise of -2.34% [1] - The company posted revenues of $1.44 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.57% [2] Earnings Performance - The earnings of $1.25 per share compare to $1.26 per share a year ago, indicating a slight decline [1] - Over the last four quarters, Texas Roadhouse has surpassed consensus EPS estimates only once [2] Revenue Insights - Year-over-year revenue growth was observed, with current quarter revenues of $1.44 billion compared to $1.27 billion a year ago [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - Texas Roadhouse shares have declined approximately 8.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, particularly management's commentary during the earnings call [4] - Current consensus EPS estimate for the coming quarter is $1.73 on $1.5 billion in revenues, and $6.58 on $5.89 billion in revenues for the current fiscal year [7] Estimate Revisions - The trend for estimate revisions prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions [5]

Financial Data and Key Metrics Changes - The company reported revenue growth of 12.8% for Q3 2025, driven by a 5.5% increase in average weekly sales and 6.8% store week growth [13] - Diluted earnings per share decreased by 0.8% to $1.25 [13] - Restaurant margin dollars increased by 1.1% to $204 million, while restaurant margin as a percentage of total sales decreased by 168 basis points year-over-year to 14.3% [15][16] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged nearly $162,000 in weekly sales, Bubba's 33 averaged $119,000, and Jaggers averaged over $75,000 [10] - Comparable sales increased by 6.1% in Q3, with traffic growth of 4.3% and an average check increase of 1.8% [13] - The to-go business represented approximately 13.6% of total weekly sales, averaging $21,500 [13] Market Data and Key Metrics Changes - The company opened seven company-owned locations in Q3, including two Bubba's 33 and one Jaggers, and plans to open approximately 30 restaurants across three brands in 2025 [5][6] - Franchise partners opened two international Texas Roadhouse restaurants during Q3 and plan to open ten new restaurants in total, including six international locations [6] Company Strategy and Development Direction - The company aims to maintain a people-first focus, operational excellence, and a strong value proposition to drive long-term success [4] - The company is on track to open approximately 35 company-owned restaurants in 2026, including 20 Texas Roadhouse, 10 Bubba's 33, and five Jaggers [6] - The company continues to invest in technology, with 95% of restaurants using a digital kitchen and upgraded guest management systems [8] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior remains strong, with no noticeable change in guest behavior following a 1.7% menu price increase [6] - The company expects commodity inflation to be approximately 6% for 2025 and 7% for 2026, with significant volatility in beef prices anticipated [10][11] - Management remains optimistic about maintaining top-line growth through guest traffic and restaurant expansion despite inflationary pressures [8][9] Other Important Information - The company ended Q3 with a cash balance of $108 million and cash flow from operations of $144 million, offset by $214 million in capital expenditures, dividend payments, and share repurchases [11] - The company is prioritizing new store development and maintaining existing restaurants, with capital expenditure guidance set at approximately $400 million for 2026 [12] Q&A Session Summary Question: Outlook for beef inflation and beverage program - Management indicated that beef inflation is expected to be in the mid-teens, with a focus on mocktails and beverage offerings to cater to changing consumer preferences [21][26] Question: Confidence in beef inflation being transitory - Management believes the current beef inflation is cyclical and transitory, based on industry insights and purchasing department evaluations [32][34] Question: Consumer trends by income and age cohort - Management noted no significant differences in consumer behavior by income or age cohort, attributing strong traffic growth to the value offered [36][38] Question: Pricing philosophy and impact on compensation - Management emphasized a conservative pricing approach to protect top-line growth and manage partner compensation effectively [44][46] Question: Restaurant profit dollars and inflation management - Management acknowledged the decline in restaurant profit dollars per location but remains confident in long-term growth strategies [52][56] Question: New customer acquisition and competition - Management believes they are attracting customers from various segments, including higher-end steakhouses and QSRs, due to their quality offerings and restaurant experience [60][61] Question: Franchise acquisitions and CapEx balance - Management confirmed ongoing conversations for franchise acquisitions and explained that capital expenditures remain stable despite increased openings due to efficiency [71][74]

Restaurant company Texas Roadhouse (NASDAQ:TXRH) reported Q3 CY2025 results beating Wall Street’s revenue expectations , with sales up 12.8% year on year to $1.44 billion. Its GAAP profit of $1.25 per share was 3% below analysts’ consensus estimates. Is now the time to buy Texas Roadhouse? Find out in our full research report. Texas Roadhouse (TXRH) Q3 CY2025 Highlights: Revenue: $1.44 billion vs analyst estimates of $1.43 billion (12.8% year-on-year growth, 0.7% beat) EPS (GAAP): $1.25 vs analyst expe ...

Exhibit 99.1 Texas Roadhouse, Inc. Announces Third Quarter 2025 Results Declares Quarterly Dividend of $0.68 per Share LOUISVILLE, KY. (November 6, 2025) – Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 weeks ended September 30, 2025. Financial Results Financial results for the 13 and 39 weeks ended September 30, 2025 and September 24, 2024 were as follows: | | 13 Weeks Ended | | | 39 Weeks Ended | | | | --- | --- | --- | --- | --- | --- | --- | | ($000's, except ...

Core Viewpoint - Texas Roadhouse, Inc. reported financial results for the 13 and 39 weeks ended September 30, 2025, showing revenue growth but a slight decline in net income and diluted earnings per share compared to the previous year [1][2][3]. Financial Results - Total revenue for the 13 weeks ended September 30, 2025, was $1,436.3 million, a 12.8% increase from $1,273.0 million in the same period last year [2]. - For the 39 weeks ended September 30, 2025, total revenue reached $4,396.0 million, up 11.7% from $3,935.4 million [2]. - Income from operations for the 13 weeks was $96.9 million, down 5.0% from $102.0 million [2]. - Net income for the 13 weeks was $83.2 million, a decrease of 1.5% from $84.4 million [2]. - Diluted earnings per share for the 13 weeks were $1.25, down 0.8% from $1.26 [2]. Comparable Restaurant Sales - Comparable restaurant sales increased by 6.1% at company restaurants for the 39 weeks ended September 30, 2025 [3]. - Average weekly sales at company restaurants were $157,325, with to-go sales accounting for $21,409, compared to $149,176 and $18,914 in the prior year [3]. Restaurant Margin - Restaurant margin dollars increased by 1.1% to $204.3 million from $202.1 million in the prior year, while the restaurant margin percentage decreased by 168 basis points to 14.3% due to commodity inflation of 7.9% and wage inflation of 3.9% [3][7]. - For the 39 weeks, restaurant margin dollars increased by 4.1% to $700.9 million from $673.1 million, with a margin percentage decrease of 118 basis points to 16.0% [7]. Capital Allocation and Growth - The company opened seven new restaurants during the reported period, including five franchise acquisitions [3][5]. - Capital allocation included expenditures of $128.9 million, dividends of $45.1 million, and stock repurchases of $40.0 million [3]. Dividend Declaration - The Board of Directors approved a quarterly cash dividend of $0.68 per share, to be distributed on December 30, 2025 [9][18]. 2025 and 2026 Outlook - For the first five weeks of the fourth quarter of 2025, comparable restaurant sales increased by 5.4% compared to the same period in 2024 [6]. - The company implemented a menu price increase of approximately 1.7% at the beginning of the fourth quarter [6].

Wall Street analysts expect Texas Roadhouse (TXRH) to post quarterly earnings of $1.28 per share in its upcoming report, which indicates a year-over-year increase of 1.6%. Revenues are expected to be $1.43 billion, up 12.2% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 0.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this tim ...

I’m an equity analyst and founder of Goulart’s Restaurant Stocks, a research firm focused on the U.S. restaurant industry — from quick-service and fast casual to fine dining and niche concepts. I lead all thematic research and valuation efforts, applying advanced financial modeling, sector-specific KPIs, and strategic insights to uncover hidden value across public equities. In addition to restaurants, I cover consumer discretionary, food & beverage, casinos & gaming, and IPOs, with a particular focus on mic ...