Earnings release
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ЄTEXAS ROADHOUSE Texas Roadhouse , Inc. Announces Second Quarter 2026 Results Declares Quarterly Dividend of $ 0.75 per Share - LOUISVILLE , KY . ( August 6 , 2026 ) – Texas Roadhouse , Inc. ( NasdaqGS : TXRH ) , today announced financial results for the 13 and 26 weeks ended June 30 , 2026 . Financial Results Financial results for the 13 and 26 weeks ended June 30 , 2026 and July 1 , 2025 were as follows : 13 Weeks Ended 26 Weeks Ended ( $ 000's , except per share amounts ) June 30 , 2026 July 1 , 2025 % change June 30 , 2026 July 1 , 2025 % change Total revenue $ 1,679,976 $ 1,512,054 11.1 % $ 3,313,142 $ Income from operations 142,788 146,341 ( 2.4 % ) 289,129 2,959,702 281,074 11.9 % 2.9 % Net income 121,933 124,085 ( 1.7 % ) 245,366 237,747 3.2 % Diluted earnings per share $ 1.85 $ 1.86 ( 0.7 % ) $ 3.72 $ 3.57 4.2 % Results at company restaurants for the 13 weeks ended June 30 , 2026 , as compared to the prior year as applicable , included the following : • Comparable restaurant sales increased 6.2 % and store weeks increased 5.0 % ; • Average weekly sales were $ 177,252 of which $ 25,369 were to - go sales as compared to average weekly sales of $ 167,350 of which $ 22,243 were to - go sales in the prior year ; • • Restaurant margin dollars increased 6.9 % to $ 275.1 million from $ 257.3 million in the prior year primarily due to higher sales . Restaurant margin , as a percentage of restaurant and other sales , decreased 66 basis points to 16.4 % as commodity inflation of 7.0 % and wage and other labor inflation of 3.9 % were partially offset by higher sales ; Diluted earnings per share decreased 0.7 % primarily driven by higher general and administrative expenses and higher depreciation and amortization expenses partially offset by higher restaurant margin dollars and the impact of share repurchases ; Nine company restaurants and one franchise restaurant were opened ; and Cash provided by operating activities was $ 180.1 million and capital allocation spend included capital expenditures of $ 98.7 million , dividends of $ 49.3 million , and repurchases of common stock of $ 42.6 million .
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Results at company restaurants for the 26 weeks ended June 30, 2026, as compared to the prior year as applicable, included the following: • Comparable restaurant sales increased 6.7% and store weeks increased 5.3%; • Average weekly sales were $175,708 of which $25,371 were to-go sales as compared to average weekly sales of $165,228 of which $22,195 were to-go sales in the prior year; • Restaurant margin dollars increased 8.6% to $539.5 million from $496.6 million in the prior year primarily due to higher sales . Restaurant margin, as a percentage of restaurant and other sales, decreased 52 basis points to 16.4% as commodity inflation of 6.6% and wage and other labor inflation of 3.9% were partially offset by higher sales; • Diluted earnings per share increased 4.2% primarily driven by higher restaurant margin dollars and the impact of share repurchases partially offset by higher depreciation and amortization expenses and higher general and administrative expenses; • 13 company restaurants and three franchise restaurants were opened; and • Cash provided by operating activities was $439.2 million and c apital allocation spend included capital expenditures of $ 178.8 million, franchise acquisitions of $71.8 million, dividends of $ 98.7 million, and repurchases of common stock of $70.8 million. Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “We are excited about the momentum in our business this quarter as continued strong traffic trends drove record average weekly sales. These results are a testament to the hard work, passion, and ownership mentality of our operators and their commitment to our mission, values, and purpose of Serving Communities Across America and the World .” Morgan added, “Looking ahead, we continue to expect meaningful growth opportunities across all three of our brands. With a strong development pipeline, healthy balance sheet, and our disciplined capital allocation approach, we remain focused on expanding our footprint, investing in our people, and executing Legendary Food and Legendary Service that sets us apart. We believe this focus positions us well to continue creating long-term value for our shareholders.” 2026 Outlook Comparable restaurant sales at company restaurants for the first five weeks of the third quarter of our 2026 fiscal year increased 6.2% compared to 2025. Management updated the following expectations for 2026: • Commodity inflation of approximately 5%; and • An effective income tax rate of approximately 14%. Management reiterated the following expectations for 2026: • Positive comparable restaurant sales growth, including the benefit of menu pricing actions; • Store week growth of 5% to 6%, including the benefit from franchise acquisitions; • Wage and other labor inflation of 3% to 4%; and • Total capital expenditures of approximately $400 million. Cash Dividend Payment On August 5, 2026, the Company’s Board of Directors approved the payment of a quarterly cash dividend of $0. 75 per share of common stock. This payment will be distributed on September 29, 2026, to shareholders of record at the close of business on September 1, 2026.
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Non-GAAP Measures The Company prepares the unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) . Within the press release, the Company makes reference to restaurant margin (in dollars, as a percentage of restaurant and other sales, and per store week). Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent , and other operating costs. Restaurant margin should not be considered in isolation, or as an alternative, to income from operations . This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non -restaurant-level costs that support operations, but do not have a direct impact on restaurant -level operational efficiency and performance , including pre- opening and general and administrative expenses. The Company excludes pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results . The Company excludes depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as they represent a non-cash charge for the investment in restaurants. The Company excludes impairment and closure expenses as it believes this provides a clearer perspective of ongoing operating performance and a more useful comparison to prior period results . Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in the industry . A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables. Conference Call Texas Roadhouse, Inc. is hosting a conference call today, August 6, 2026, at 5:00 p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company ’s website at investor.texasroadhouse.com. Listeners may also access the call by dialing (833) 461-5787 and using conference ID 639749828. A replay of the webcast will be available on the Company’s Investor Relations website shortly after the conclusion of the call. About the Company Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 830 restaurants system-wide in 49 states, one U.S. territory, and ten foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com.
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Forward-looking Statements Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward -looking statements based on a number of factors including, without limitation, conditions beyond management’s control such as weather, natural disasters, disease outbreaks, epidemics , or pandemics impacting customers or food supplies; labor or supply chain shortages or limited availability of staff or product needed to meet the Company’s business standards; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and the impact of tariffs ; food safety and food -borne illness concerns; and other factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limi ted to those described under “ Part I—Item 1A. Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 30, 202 5. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law. # # # Contacts: Investor Relations Media Michael Bailen Megan Pence (502) 515-7298 (502) 461-1878
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Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited) 13 Weeks Ended 26 Weeks Ended June 30, 2026 July 1, 2025 June 30, 2026 July 1, 2025 Revenue: Restaurant and other sales $ 1,672,913 $ 1,503,974 $ 3,299,602 $ 2,944,316 Royalties and franchise fees 7,063 8,080 13,540 15,386 Total revenue 1,679,976 1,512,054 3,313,142 2,959,702 Costs and expenses: Restaurant operating costs (excluding depreciation and amortization shown separately below): Food and beverage 591,525 511,324 1,165,827 1,002,315 Labor 544,001 495,049 1,078,620 975,024 Rent 25,247 23,028 49,960 45,505 Other operating 237,020 217,230 465,646 424,845 Pre-opening 8,492 5,464 15,128 12,276 Depreciation and amortization 58,341 50,744 115,184 99,544 Impairment and closure, net 153 111 153 139 General and administrative 72,409 62,763 133,495 118,980 Total costs and expenses 1,537,188 1,365,713 3,024,013 2,678,628 Income from operations 142,788 146,341 289,129 281,074 Interest income, net 1,021 1,044 1,566 2,345 Equity income from investments in unconsolidated affiliates 182 1,426 326 1,651 Income before taxes 143,991 148,811 291,021 285,070 Income tax expense 19,477 22,118 40,512 42,318 Net income including noncontrolling interests 124,514 126,693 250,509 242,752 Less: Net income attributable to noncontrolling interests 2,581 2,608 5,143 5,005 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 121,933 $ 124,085 $ 245,366 $ 237,747 Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: Basic $ 1.86 $ 1.87 $ 3.73 $ 3.58 Diluted $ 1.85 $ 1.86 $ 3.72 $ 3.57 Weighted average shares outstanding: Basic 65,696 66,373 65,809 66,429 Diluted 65,920 66,598 66,019 66,656 Cash dividends declared per share $ 0.75 $ 0.68 $ 1.50 $ 1.36
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Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, 2026 December 30, 2025 Cash and cash equivalents $ 202,427 $ 134,709 Other current assets, net 159,471 316,767 Property and equipment, net 1,886,572 1,803,841 Operating lease right-of-use assets, net 942,110 879,521 Goodwill 275,036 242,220 Intangible assets, net 26,485 17,742 Other assets 179,965 154,672 Total assets $ 3,672,066 $ 3,549,472 Current liabilities 790,793 908,837 Operating lease liabilities, net of current portion 1,004,717 943,070 Long-term debt 50,000 — Other liabilities 246,762 215,863 Texas Roadhouse, Inc. and subsidiaries stockholders’ equity 1,558,552 1,460,820 Noncontrolling interests 21,242 20,882 Total liabilities and equity $ 3,672,066 $ 3,549,472
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Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) 26 Weeks Ended June 30, 2026 July 1, 2025 Cash flows from operating activities: Net income including noncontrolling interests $ 250,509 $ 242,752 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 115,184 99,544 Share-based compensation expense 26,902 23,249 Deferred income taxes 7,799 (6,467) Other noncash adjustments, net 2,324 2,472 Change in working capital, net of acquisitions 36,509 4,430 Net cash provided by operating activities 439,227 365,980 Cash flows from investing activities: Capital expenditures - property and equipment (178,845) (169,912) Acquisitions of franchise restaurants, net of cash acquired (71,778) (93,878) Other investing activities, net 8,640 4,263 Net cash used in investing activities (241,983) (259,527) Cash flows from financing activities: Proceeds from revolving credit facility, net of repayments 50,000 — Repurchase of shares of common stock, including excise taxes as applicable (71,845) (60,414) Dividends paid to shareholders (98,663) (90,292) Other financing activities, net (9,018) (24,171) Net cash used in financing activities (129,526) (174,877) Net increase (decrease) in cash and cash equivalents 67,718 (68,424) Cash and cash equivalents - beginning of period 134,709 245,225 Cash and cash equivalents - end of period $ 202,427 $ 176,801
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Texas Roadhouse, Inc. and Subsidiaries Reconciliation of Income from Operations to Restaurant Margin ($ in thousands) (unaudited) 13 Weeks Ended 26 Weeks Ended June 30, 2026 July 1, 2025 June 30, 2026 July 1, 2025 Income from operations $ 142,788 $ 146,341 $ 289,129 $ 281,074 Less: Royalties and franchise fees 7,063 8,080 13,540 15,386 Add: Pre-opening 8,492 5,464 15,128 12,276 Depreciation and amortization 58,341 50,744 115,184 99,544 Impairment and closure, net 153 111 153 139 General and administrative 72,409 62,763 133,495 118,980 Restaurant margin $ 275,120 $ 257,343 $ 539,549 $ 496,627 Restaurant margin (as a percentage of restaurant and other sales) 16.4% 17.1% 16.4% 16.9%
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Texas Roadhouse, Inc. and Subsidiaries Supplemental Financial and Operating Information ($ amounts in thousands, except restaurant margin $ per store week and weekly sales by group) (unaudited) 13 Weeks Ended June 30, 2026 July 1, 2025 Change Company restaurants (all concepts) Restaurant and other sales $ 1,672,913 $ 1,503,974 11.2 % Store weeks 9,457 9,010 5.0 % Comparable restaurant sales (1) 6.2 % 5.8 % Restaurant operating costs (as a % of restaurant and other sales) Food and beverage costs 35.4 % 34.0 % (136) bps Labor 32.5 % 32.9 % 40 bps Rent 1.5 % 1.5 % 2 bps Other operating 14.2 % 14.5 % 28 bps Total 83.6 % 82.9 % Restaurant margin % 16.4 % 17.1 % (66) bps Restaurant margin $ $ 275,120 $ 257,343 6.9 % Restaurant margin $/Store week $ 29,092 $ 28,562 1.9 % Texas Roadhouse restaurants only: Store weeks 8,574 8,226 4.2 % Comparable restaurant sales (1) 6.5 % 5.9 % Average unit volume (2) $ 2,380 $ 2,246 6.0 % Weekly sales by group: Comparable restaurants (626 and 590 units) $ 183,982 $ 173,349 6.1 % Average unit volume restaurants (20 and 28 units) $ 155,639 $ 144,493 7.7 % Restaurants less than 6 months old (16 and 16 units) $ 180,822 $ 163,767 10.4 % Bubba’s 33 restaurants only: Store weeks 742 668 11.1 % Comparable restaurant sales (1) 1.3 % 4.3 % Average unit volume (2) $ 1,659 $ 1,645 0.9 % Weekly sales by group: Comparable restaurants (48 and 43 units) $ 128,185 $ 126,812 1.1 % Average unit volume restaurants (6 and 5 units) $ 122,880 $ 124,187 (1.1) % Restaurants less than 6 months old (5 and 4 units) $ 159,187 $ 149,788 6.3 % Texas Roadhouse franchise restaurants only: Store weeks 1,205 1,256 (4.1) % Comparable restaurant sales 4.4 % 7.0 % (1) Comparable restaurant sales reflect the change in sales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable. (2) Average unit volume includes sales from restaurants open for a full six months before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable.
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Texas Roadhouse, Inc. and Subsidiaries Restaurant Unit Activity (unaudited) 13 Weeks Ended 26 Weeks Ended June 30, 2026 July 1, 2025 Change June 30, 2026 July 1, 2025 Change Restaurant openings Company - Texas Roadhouse 5 2 3 9 9 — Company - Bubba’s 33 3 2 1 3 3 — Company - Jaggers 1 — 1 1 — 1 Total company restaurants 9 4 5 13 12 1 Franchise - Texas Roadhouse - Domestic — — — — — — Franchise - Jaggers - Domestic — 1 (1) 1 1 — Franchise - Texas Roadhouse - Int'l (1) 1 — 1 2 — 2 Total franchise restaurants 1 1 — 3 1 2 Total restaurants 10 5 5 16 13 3 Restaurant acquisitions/dispositions Company - Texas Roadhouse — 3 (3) 5 17 (12) Franchise - Texas Roadhouse - Domestic — (3) 3 (5) (17) 12 Restaurants open at the end of the quarter Company - Texas Roadhouse 662 634 28 Company - Bubba’s 33 59 52 7 Company - Jaggers 11 9 2 Total company restaurants 732 695 37 Franchise - Texas Roadhouse - Domestic 31 39 (8) Franchise - Jaggers - Domestic 6 5 1 Franchise - Texas Roadhouse - Int'l (1) 62 57 5 Franchise - Jaggers - Int'l 1 1 — Total franchise restaurants 100 102 (2) Total restaurants 832 797 35 (1) Includes a U.S. territory.