Texas Roadhouse Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did TXRH Beat Earnings? Q2 2025 Results
Texas Roadhouse delivered a mixed second quarter for the 13 weeks ended July 1, 2025, posting strong top-line growth that masked a modest earnings shortfall as beef inflation weighed on margins. Revenue climbed 12.7% year-over-year to $1.51 billion, edging past the $1.50 billion consensus estimate by 0.66%, while comparable restaurant sales rose 5.8% across company locations with positive traffic across all three brands. Diluted EPS of $1.86, up 4.0% from the prior-year period, fell short of the $1.91 consensus by 2.49%, as food and beverage costs as a percentage of sales jumped to 34.0% from 32.7%, driven by commodity inflation of 5.2% with beef prices, which represent the majority of the commodity basket, commanding particular attention on the earnings call. Restaurant margin contracted 108 basis points to 17.1% despite a 6.1% rise in margin dollars. Management updated its full-year commodity inflation outlook to approximately 5%, incorporating estimated tariff impacts, while reiterating store week growth of roughly 5% and noting that comparable restaurant sales for the first five weeks of Q3 rose 5.3%.
- Comparable restaurant sales increased 5.8% at company restaurants
- Positive traffic across all three brands
- Average weekly sales at company restaurants increased to $167,350 from $158,991
- To-go sales grew to $22,243 per week from $19,975
- Restaurant margin dollars increased 6.1% to $257.3 million
- Share repurchases contributed to EPS growth
- Texas Roadhouse comparable restaurant sales up 5.9%
- Bubba's 33 comparable restaurant sales up 4.3%
“Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands. While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands.”
Texas Roadhouse CEO, on the earnings call
Forward Guidance & Outlook
Management updated 2025 expectations: commodity cost inflation of approximately 5% (including estimated tariff impacts), wage and other labor inflation of approximately 4%, and an effective income tax rate of approximately 15%. Reiterated expectations include positive comparable restaurant sales growth with menu pricing actions, store week growth of approximately 5%, and total capital expenditures of approximately $400 million. Comparable restaurant sales for the first five weeks of Q3 2025 increased 5.3%. The company has plans to acquire eight domestic franchise restaurants beginning in Q4 2025 and Q1 2026.
TXRH YoY Financials
TXRH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.