Companies /Consumer Cyclical

Texas Roadhouse Inc

NASDAQ: TXRH Restaurants
$189.56
▲ $0.50 (+0.26%) today
Markets closed · 1:08am ET

Q3 2025 Earnings

Reported Nov 6, 2025, 4:06pm ET · SEC source
$1.25
Miss −2.24%
EPS · est. $1.28
$1.4B
Beat +0.49%
Revenue · est. $1.4B
−1.8%
Trailing market
TXRH vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−4%−2%0Nov 6Nov 7report 4:06pm ETearnings+0.0%+0.0%
−6%−4%−2%0Nov 6Nov 7earnings+0.0%+0.0%
TXRH +0.0%S&P 500 +0.0%
−6%−4%−2%0Nov 6Nov 7report 4:06pm ETearnings−0.3%+0.0%
−6%−4%−2%0Nov 6Nov 7earnings−0.3%+0.0%
TXRH +0.0%NASDAQ −0.3%
0+3%+6%Nov 5Nov 14report 4:06pm ETearnings+0.1%+5.9%
0+3%+6%Nov 5Nov 14earnings+0.1%+5.9%
TXRH +5.9%S&P 500 +0.1%
0+3%+6%Nov 5Nov 14report 4:06pm ETearnings−0.4%+5.9%
0+3%+6%Nov 5Nov 14earnings−0.4%+5.9%
TXRH +5.9%NASDAQ −0.4%
+2.68%
Day of report
−1.99%
Next session
+1.41%
One week
+0.72%
30 days

S&P 500 over the same 30 days: +2.47%.

Did TXRH Beat Earnings? Q3 2025 Results

Texas Roadhouse delivered a mixed third quarter for fiscal 2025, posting strong top-line growth that masked a notable earnings shortfall as commodity inflation eroded margins. Revenue climbed 12.8% year-over-year to $1.44 billion, edging past the $1.43 billion consensus estimate by 0.49%, but diluted EPS of $1.25 fell short of the $1.28 analyst estimate by 2.24%, sliding slightly from $1.26 in the prior-year period. The culprit was clear: commodity inflation of 7.9% drove food and beverage costs to 35.8% of restaurant sales from 33.5%, compressing restaurant margin by 168 basis points to 14.3% despite comparable restaurant sales growth of 6.1% and continued unit expansion. CEO Jerry Morgan acknowledged uncertainty around the duration of inflationary pressures, and the forward-looking picture offers little immediate relief, with management guiding 2026 commodity inflation at approximately 7%. On a brighter note, early Q4 comparable sales rose 5.4%, supported by a 1.7% menu price increase, signaling the company is not standing still in its effort to recapture margin.

Key Takeaways
  • Comparable restaurant sales growth of 6.1% at company restaurants
  • Strong traffic driven by operators
  • Average weekly sales at company restaurants increased to $157,325 from $149,176
  • To-go sales increased to $21,409 per week from $18,914
  • Seven company and two franchise restaurant openings in Q3
  • Restaurant margin dollars increased 1.1% to $204.3 million

“Our operators continued to drive strong traffic this quarter, which helped offset the impact of continued commodity inflation. While the duration of these inflationary pressures remains uncertain, we are committed to running our business with a long-term focus and maintaining our value proposition.”

Texas Roadhouse CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025 through the first five weeks, comparable restaurant sales increased 5.4%, with a 1.7% menu price increase implemented at the start of Q4. Management updated 2025 expectations: commodity inflation of approximately 6% and effective tax rate of approximately 14.5%. Reiterated expectations include positive comparable restaurant sales growth, store week growth of approximately 5%, wage/labor inflation of approximately 4%, and total capital expenditures of approximately $400 million. Initial 2026 guidance includes positive comparable restaurant sales growth, store week growth of 5%-6% (including franchise acquisitions), commodity inflation of approximately 7%, wage/labor inflation of 3%-4%, effective tax rate of approximately 15%, and total capital expenditures of approximately $400 million.

TXRH YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$400.0M$800.0M$1.2B$1.3B$1.4BRevenue$102.0M$96.9MOperating Income$84.4M$83.2MNet Income
$0$400.0M$800.0M$1.2BRevenueOperating IncomeNet Income

TXRH Revenue by Segment

Restaurant and Other Sales$1.4B+12.9%
Royalties and Franchise Fees$7.2M

Figures from SEC filings and company reports. Not investment advice.