Texas Roadhouse, Inc. Announces Third Quarter 2025 Results

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].