Texas Roadhouse Inc
Q2 2026 Earnings
Market Reaction
Did TXRH Beat Earnings? Q2 2026 Results
Texas Roadhouse delivered a solid but nuanced second quarter for fiscal 2026, posting revenue of $1.68 billion, up 11.1% year-over-year, while GAAP diluted earnings per share edged down slightly to $1.85 from $1.86 in the prior-year period. The top-line strength was fueled by a 6.2% rise in comparable restaurant sales and 5.0% store week growth, with average weekly sales climbing to $177,252 from $167,350. The modest EPS dip reflected cost headwinds that tempered the revenue momentum, particularly commodity inflation of 7.0% and a jump in general and administrative expenses to $72.41 million from $62.76 million, which squeezed restaurant margin as a percentage of sales by 66 basis points to 16.4%. Analysts had been watching beef cost pressures closely heading into the print, and those concerns proved warranted. Looking ahead, management updated its commodity inflation outlook to approximately 5% for 2026 while reiterating store week growth of 5% to 6%, and noted that comparable restaurant sales for the first five weeks of Q3 rose 6.2%, signaling continued consumer demand across its three-brand portfolio.
- Comparable restaurant sales increased 6.2% driven by strong traffic trends
- Store weeks increased 5.0% year-over-year
- Average weekly sales of $177,252, up from $167,350 in the prior year
- Restaurant margin dollars increased 6.9% to $275.1 million
- To-go sales of $25,369 per week vs. $22,243 in prior year
“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.”
Texas Roadhouse CEO, on the earnings call
Forward Guidance & Outlook
Comparable restaurant sales at company restaurants for the first five weeks of Q3 2026 increased 6.2% vs. 2025. Management updated expectations for commodity inflation to approximately 5% and an effective income tax rate of approximately 14%. Reiterated expectations include: positive comparable restaurant sales growth including menu pricing benefits; store week growth of 5% to 6% (including franchise acquisitions); wage and other labor inflation of 3% to 4%; and total capital expenditures of approximately $400 million.
TXRH YoY Financials
TXRH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.