Texas Roadhouse, Inc. Announces Second Quarter 2026 Results

LOUISVILLE, Ky., Aug. 06, 2026 (GLOBE NEWSWIRE) -- 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:

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.

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 capital 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.

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.

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 limited 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, 2025. 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.

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Source: Texas Roadhouse, Inc

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