Texas Roadhouse

TXRH Q1 2026 Earnings

Reported May 7, 2026 at 4:06 PM ET · SEC Source

Q1 26 EPS

$1.87

BEAT +3.96%

Est. $1.80

Q1 26 Revenue

$1.63B

MISS 0.14%

Est. $1.64B

vs S&P Since Q1 26

+19.2%

BEATING MARKET

TXRH +18.7% vs S&P -0.5%

Market Reaction

Did TXRH Beat Earnings? Q1 2026 Results

Texas Roadhouse delivered a solid first quarter for fiscal 2026, posting diluted EPS of $1.87 against a consensus estimate of $1.80, a beat of roughly 3.96%, even as revenue of $1.63 billion came in just fractionally below the $1.64 billion analysts … Read more Texas Roadhouse delivered a solid first quarter for fiscal 2026, posting diluted EPS of $1.87 against a consensus estimate of $1.80, a beat of roughly 3.96%, even as revenue of $1.63 billion came in just fractionally below the $1.64 billion analysts had expected, a miss of only 0.14%. The top line still grew 12.8% year-over-year, powered by comparable restaurant sales growth of 7.1% and store week growth of 5.7% across the chain's expanding portfolio of 822 system locations. The primary tension in the quarter was margin compression, as commodity inflation of 6.2% and wage and labor inflation of 3.8% pushed food and beverage costs to 35.3% of restaurant sales, contributing to a 36 basis point decline in restaurant margin percentage to 16.3%, a dynamic that has drawn scrutiny from analysts watching the company's cost trajectory. Management noted early Q2 comparable sales growth of 6.5% through the first five weeks, implemented a roughly 1.9% menu price increase in early April, and maintained full-year capital expenditure guidance of approximately $400 million, signaling continued confidence in its long-term expansion plans.

Key Takeaways

  • Comparable restaurant sales increased 7.1% across all company concepts
  • Store weeks increased 5.7% year-over-year
  • Average weekly sales grew to $174,151 from $163,071
  • To-go sales increased to $25,374 per week from $22,146
  • Restaurant margin dollars increased 10.5% to $264.4 million
  • Share repurchases contributed to diluted EPS growth of 9.6%
  • Texas Roadhouse brand comparable sales up 7.5%

TXRH Forward Guidance & Outlook

Comparable restaurant sales at company restaurants for the first five weeks of Q2 2026 increased 6.5% compared to 2025. A menu price increase of approximately 1.9% was implemented in early April. For 2026, management updated commodity inflation guidance to 6%-7% and reiterated: positive comparable restaurant sales growth including menu pricing benefits; store week growth of 5%-6% including franchise acquisitions; wage and other labor inflation of 3%-4%; effective income tax rate of 14%-15%; and total capital expenditures of approximately $400 million. Seven company restaurants have been opened so far in 2026 with 22 additional under construction.

24/7 Wall St

TXRH YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

TXRH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We kicked off 2026 with terrific momentum, thanks to the hard work and discipline of all our operators. Our strong traffic trends continue to fuel sales growth, and it's clear that our commitment to delivering a legendary experience is appreciated by our guests.”

— Jerry Morgan, Q1 2026 Earnings Press Release