Overview

* Texas Roadhouse ( TXRH ) Q3 revenue grows 12.8% yr/yr, slightly beating analyst expectations

* Diluted EPS for Q3 decreased 0.8% due to higher depreciation and amortization expenses

* Company acquired three domestic franchise restaurants, plans further acquisitions in 2026

Outlook

* Texas Roadhouse ( TXRH ) expects 2025 commodity inflation of approximately 6%

* Company anticipates 2026 store week growth of 5% to 6%

* Texas Roadhouse ( TXRH ) projects 2026 capital expenditures of approximately $400 mln

Result Drivers

* COMPARABLE SALES GROWTH - Comparable restaurant sales increased 6.1% at company restaurants, driven by higher average weekly sales and to-go sales

* MARGIN PRESSURE - Restaurant margin percentage decreased due to 7.9% commodity inflation and 3.9% wage inflation, despite higher sales

* NEW RESTAURANT OPENINGS - Seven company restaurants and two franchise restaurants were opened during the quarter

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $1.44 $1.43

Revenue Beat* bln bln (25

Analysts

)

Q3 EPS $1.25

Q3 Net $83.17

Income mln

Q3 EBIT $96.95

mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 19 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Texas Roadhouse Inc ( TXRH ) is $190.00, about 12.8% above its November 5 closing price of $165.76

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)