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Texas Roadhouse Hikes Dividend Despite Earnings Pressure

Story Highlights
  • Texas Roadhouse grew 2025 sales but saw profit margins and earnings pressured by inflation and the loss of an extra 2024 week.
  • The company increased its quarterly dividend, expanded its store base, and continued leadership transition support while early 2026 sales accelerated.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Texas Roadhouse Hikes Dividend Despite Earnings Pressure

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An update from Texas Roadhouse ( (TXRH) ) is now available.

Texas Roadhouse reported fourth-quarter 2025 revenue rising 3.1% to $1.48 billion and full-year revenue up 9.4% to $5.88 billion, but income from operations and net income declined for both periods, reflecting commodity and labor inflation and the absence of the extra 2024 week. Comparable restaurant sales increased 4.2% in the quarter and 4.9% for the year, average weekly sales and to-go volumes improved, and the company opened 28 company units and four franchises in 2025 while spending heavily on capex, franchise buyouts, dividends, and share repurchases.

On February 18, 2026, the board raised the quarterly dividend to $0.75 per share and approved its payment on March 31, 2026, even as earnings per share slipped 26.1% in the quarter and 5.8% for the year. Management highlighted record franchise acquisitions, additional store openings, and early 2026 same-store sales growth of 8.2%, alongside a planned April menu price increase of about 1.9%, while also extending a $100,000-per-quarter stipend for Chief Accounting and Financial Services Officer Keith Humpich through June 30, 2026 to support the CFO transition.

The most recent analyst rating on (TXRH) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Texas Roadhouse stock, see the TXRH Stock Forecast page.

Spark’s Take on TXRH Stock

According to Spark, TipRanks’ AI Analyst, TXRH is a Outperform.

TXRH scores well primarily on strong financial health (profitability, high ROE, and moderate leverage) and a supportive earnings outlook driven by traffic/revenue strength and expansion. The score is held back by margin/commodity inflation pressures, a somewhat rich P/E with only modest yield, and mixed technicals with price still below the 200-day average.

To see Spark’s full report on TXRH stock, click here.

More about Texas Roadhouse

Texas Roadhouse, Inc. is a U.S.-based casual dining restaurant operator known for its Texas Roadhouse, Bubba’s 33, and other steakhouse and family dining concepts focused on value-oriented, high-traffic hospitality. The company generates revenue primarily from company-owned restaurants and franchise operations, with a growing footprint driven by new unit development and franchise acquisitions.

Average Trading Volume: 882,668

Technical Sentiment Signal: Strong Buy

Current Market Cap: $12.36B

Find detailed analytics on TXRH stock on TipRanks’ Stock Analysis page.

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