Texas Roadhouse Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy TXRH?
Source: seekingalpha
- Significant Revenue Growth: Texas Roadhouse reported nearly $5.9 billion in revenue for 2025, reflecting a 3.1% year-over-year increase driven by a 4% rise in average weekly sales, despite a 0.6% decline in store weeks, indicating strong market performance.
- Expansion and Acquisitions: The company added 48 company-owned restaurants and acquired 20 franchise locations in 2025, marking continued brand expansion, with plans for approximately 35 new restaurant openings in 2026 to further solidify its market position.
- Cost Pressures and Response Strategies: In light of 7% commodity inflation, Texas Roadhouse plans to implement a 1.9% menu price increase in Q2 2026 to address ongoing cost pressures from beef and other key inputs, ensuring margin stability.
- Shareholder Returns and Cash Flow: The company generated over $730 million in operating cash flow in 2025, with capital expenditures of $388 million and returning $180 million to shareholders through dividends and share repurchases, enhancing investor confidence.
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Analyst Views on TXRH
Wall Street analysts forecast TXRH stock price to rise
17 Analyst Rating
7 Buy
10 Hold
0 Sell
Moderate Buy
Current: 157.930
Low
155.00
Averages
190.04
High
228.00
Current: 157.930
Low
155.00
Averages
190.04
High
228.00
About TXRH
Texas Roadhouse, Inc. is a restaurant company operating predominantly in the casual dining segment. The Company maintains three restaurant concepts operating as Texas Roadhouse, Bubba’s 33, and Jaggers. Texas Roadhouse is a full-service, casual dining restaurant concept offering an assortment of specially seasoned and aged steaks hand-cut daily on the premises and cooked to order over open grills. Bubba’s 33 is a full-service, casual dining restaurant concept featuring scratch-made food for all with a little rock 'n' roll, ice-cold beer, and signature cocktails. Its menu features burgers, pizza, wings, sandwiches and others. Its Jaggers is a fast-casual restaurant concept offering burgers, hand-breaded chicken sandwiches and chicken tenders, made-to-order fresh salads, and hand-spun milkshakes. Jaggers offer drive-thru, carry-out, and dine-in service options. It operates approximately 780 restaurants system-wide in 49 states, one United States territory, and 10 foreign countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Texas Roadhouse Q1 2026 Earnings Call Highlights
- Significant Sales Growth: Texas Roadhouse achieved a 7.1% increase in same-store sales in Q1 2026, with traffic growth of 4.5%, driving quarterly revenue above $1.6 billion, indicating strong market performance and customer appeal.
- Steady Expansion Plans: The company expects to open approximately 35 company-owned locations for the year, with openings weighted towards the second half of 2026, including up to 9 new locations in Q2, reflecting confidence in future growth.
- Cost Control Optimization: Due to slightly better-than-expected inflation in Q1, Texas Roadhouse has reduced its full-year 2026 commodity inflation guidance from approximately 7% to between 6% and 7%, while maintaining wage and labor inflation guidance at 3% to 4%, demonstrating flexibility in cost management.
- Robust Cash Flow: The company ended Q1 with $215 million in cash and generated $259 million in operating cash flow, with capital expenditure guidance remaining at approximately $400 million, reflecting financial stability and capacity for future investments.
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Texas Roadhouse Q1 2026 Earnings Call Highlights
- Significant Sales Growth: Texas Roadhouse achieved a 7.1% increase in same-store sales in Q1 2026, with traffic growth of 4.5%, driving quarterly revenue above $1.6 billion, indicating strong market performance and customer appeal.
- Steady Expansion Plans: The company expects to open approximately 35 company-owned locations for the year, with openings weighted towards the second half of 2026, including up to 9 new locations in Q2, reflecting confidence in future growth.
- Cost Control Optimization: Due to slightly better-than-expected inflation in Q1, Texas Roadhouse has reduced its full-year 2026 commodity inflation guidance from approximately 7% to between 6% and 7%, while maintaining wage and labor inflation guidance at 3% to 4%, demonstrating flexibility in cost management.
- Robust Cash Flow: The company ended Q1 with $215 million in cash and generated $259 million in operating cash flow, with capital expenditure guidance remaining at approximately $400 million, reflecting financial stability and capacity for future investments.
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Fluence Energy Shares Soar Nearly 30% After Upgrades
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- Corpay Raises Guidance: Corpay shares jumped 10% after the company raised its full-year earnings guidance to a range of $26.30 to $27.10 per share, surpassing analyst expectations of $26.05, reflecting robust performance in the corporate payments sector and potentially increasing market share.
- Akamai Technologies Rises: Akamai's stock surged 20% after securing an $1.8 billion commitment from a leading U.S. frontier model provider for its Cloud Infrastructure Services, indicating strong demand in the market, while also reporting a first-quarter adjusted earnings beat that bolstered investor confidence.
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- Positive Employment Report: The April employment report in the U.S. exceeded expectations, albeit not overly strong, leading to optimism for a higher open in the stock market, which may boost investor risk appetite and confidence in economic recovery.
- CoreWeave's Weak Forecast: CoreWeave's second-quarter revenue forecast fell short of expectations, causing its stock to drop over 7%, highlighting the competitive pressures in the AI compute market as operating expenses rise faster than revenue growth.
- Nike Downgrade: Wells Fargo downgraded Nike from buy to hold, reducing the price target from $55 to $45 due to increased competition in the athletic apparel market and slower-than-expected turnaround progress, which could impact future performance.
- Cloudflare Layoff Announcement: Cloudflare announced layoffs of 1,100 employees, or 20% of its workforce, and expects to incur significant charges as it transitions to an AI-first model, with implementation expected to be largely completed by the third quarter, potentially affecting operational efficiency in the short term.
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Akamai Technologies Shares Surge 27% on $1.8 Billion Commitment
- Akamai Stock Surge: Shares of Akamai Technologies soared 27% after a leading U.S. frontier model provider committed to a $1.8 billion investment over seven years for its Cloud Infrastructure Services, enhancing market confidence and potentially driving future revenue growth.
- CoreWeave Revenue Guidance Miss: CoreWeave's second-quarter revenue guidance of $2.45 billion to $2.6 billion, with a midpoint of $2.53 billion, fell short of Wall Street's $2.69 billion expectation, resulting in a 7% stock decline, reflecting market concerns about its growth outlook.
- Microchip Earnings Beat: Microchip Technology's stock rose 3% following a fiscal fourth-quarter report that exceeded earnings and revenue expectations, with projected first-quarter revenue between $1.44 billion and nearly $1.47 billion, indicating strong performance in the semiconductor sector.
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- Akamai Stock Surge: Akamai Technologies shares surged 25% after announcing a $1.8 billion seven-year contract with a leading U.S. frontier model provider, indicating strong demand for its Cloud Infrastructure Services and likely boosting future revenues significantly.
- Gen Digital's Positive Guidance: Gen Digital's stock rose 8% following its current-quarter and full-year revenue guidance that exceeded analysts' expectations, suggesting robust performance in the software market that could drive future stock price increases.
- Trade Desk Stock Plummet: Trade Desk's shares plummeted 14% as its current-quarter revenue guidance fell short of analyst expectations, highlighting intensified competition in the advertising technology sector that may impact the company's future market share.
- Gilead's Adjusted Outlook: Gilead Sciences shares dropped 3% after projecting a full-year adjusted loss of $1.05 to $0.65 per share, reflecting increased research and development and financing costs, which could negatively affect investor confidence.
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