TXRH Nasdaq Russell 1000 Earnings call
Texas Roadhouse (TXRH) · Q1 2026 results and valuation
Share price: $188.36 · 2026-11-11
Results Q1 2026 vs Q4 2025 · previous quarter · published 7 May 2026 and 19 Feb 2026
Net income up 61.6% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+61.6%
Net income vs Q4 2025
Outlook given
Net income 126.0M vs 77.9M
Revenue +10.2%
Against the same quarter last year (Q1 2025) it is +8.6% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
Less upbeat than 52% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Guidance
The company expects its highest commodity inflation of the year to occur in the second quarter, now projected to be in the range of 7%.
Valuation
Is Texas Roadhouse undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 13.5% growth a year (3-year revenue growth), the model's fair value is $161.72 a share — the stock trades 16% above it. Today's price assumes 15.6% growth a year.
Current price
$188.36
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.6% for 10 yrs
Fair value / share
$161.72
Buy below
$121.29
Price vs fair value
Overvalued 16%
Price vs buy-below price
Overvalued 55%
Read between the lines
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Guidance
The company expects a low teen percentage increase in total depreciation dollar expense for full year 2026.
Source quote
“For full year 2026, we expect a low teen percentage increase in our total depreciation dollar expense.”
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Figure
Revenue surpassed $1.6 billion for the quarter, marking a notable figure for the period.
Source quote
“Revenue surpassed $1.6 billion for the quarter.”
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Last period
Texas Roadhouse reported average weekly sales of over $166,000, while Bubba's 33 and Jaggers reached over $122,000 and nearly $73,000 respectively, contributing to a total unit volume exceeding $8.4 million.
Source quote
“Same-store sales increased 4.9% for the full year, including 2.8% traffic growth. 2025 was another banner year for top line growth in our restaurants. Consolidated average unit volume exceeded $8.4 million with average weekly sales of over $166,000 at Texas Roadhouse, $122,000 at Bubba's 33 and nearly $73,000 at Jaggers.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Also, as expected, labor productivity improved in the first quarter with labor hours growing at approximately 35% of comparable traffic growth.”
“Comparable sales increased 7.1% in the first quarter, driven by 4.5% traffic growth and a 2.6% increase in average check.”
“For the first quarter of 2026, we reported revenue growth of 12.8%, driven primarily by a 6.8% increase in average weekly sales and a 5.7% increase in store weeks.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2025-12-30 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.63B | 1.48B | +10.2% | 1.45B | +12.8% |
| Operating income | 146.3M | 96.7M | +51.3% | 134.7M | +8.6% |
| Net income | 126.0M | 77.9M | +61.6% | 116.1M | +8.6% |
| EPS | 1.87 | 1.28 | +46.1% | 1.70 | +10.0% |
| P/E today 25.4 | 26.3 | 27.4 | −1.1 | 26.1 | +0.2 |
Topics
Most discussed now
- New This award goes to the brand that earns the highest overall consumer ratings for service quality, atmosphere and guest satisfaction.
- Included within this positive sales trend is the benefit of the 1.9% menu price increase that went into effect at...
- This top line momentum has carried forward into the first 5 weeks of the second quarter with comparable sales of...
- All of Texas Roadhouse's brands delivered positive comparable sales growth.
- Labor as a percentage of total sales improved 46 basis points to 32.9%, as compared to the first quarter of...
Faded since Q4 2025
- Dropped On the Roadhouse side, Texas Roadhouse is expecting its average all-in investment cost that includes 10x rent factor will be increasing...
- Fading That's 15 years of sales growth going back to 2010.
- Fading This included 28 new store openings and the previously mentioned acquisition of 20 franchise restaurants, and Texas Roadhouse's franchise…
- Fading While commodity inflation and the lapping of an additional week impacted its ability to generate earnings growth in 2025, Texas Roadhouse...
Latest announcements
Official filings, newest first.
- Results of operations; Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations; Director or officer change; Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K