Texas Roadhouse continues to navigate high beef costs

Core Insights - Texas Roadhouse celebrated its 33rd anniversary and reported nearly $5.8 billion in revenue for 2025, marking its 60th consecutive quarter of comparable restaurant sales growth, excluding the pandemic [2][3] Financial Performance - Fourth quarter same-store sales increased by 4.2%, with traffic growth of 1.9%. Monthly comp sales for October, November, and December were 6.1%, 4.8%, and 2.2%, respectively, with December affected by inclement weather [3] - Average weekly sales in the fourth quarter were $160,021, up from $153,867 in the same period last year, with to-go sales also increasing [3] Operational Highlights - The company opened its 800th restaurant and acquired 20 franchise locations in 2025, with over 70% of restaurants setting daily and weekly sales records [3] Challenges - Texas Roadhouse faced historically high beef prices, leading to a decrease in restaurant-level margins by 309 basis points to 13.9%. The company anticipates continued challenges in 2026 due to beef prices, which constitute over 50% of its basket [4] Pricing Strategy - To counter inflation, the company plans a 1.9% menu price increase in the second quarter, resulting in a total expected menu price increase of 3.6% for the second and third quarters, which is lower than its casual-dining peers [5] Management Perspective - The CEO emphasized a conservative approach, balancing guest experience, business needs, and shareholder interests while maintaining portion sizes and striving for continuous improvement [6]