Texas Roadhouse updates executive compensation with performance incentives

Texas Roadhouse ( (TXRH) ) has shared an update.

On December 30, 2025, the Compensation Committee of Texas Roadhouse’s board approved a comprehensive adjustment to 2026 compensation for its principal executive, financial, accounting officers and other named executives, aligning base salary increases with parameters used for support center employees. Effective January 8, 2026, annual base salaries were raised, led by CEO Jerry Morgan at $1.475 million, and the committee also set 2026 short-term cash incentive targets tied to pre-tax profits, comparable restaurant traffic growth and store week growth, with payouts ranging from zero up to 200% of target for most executives and 150% of target for one executive. The committee further authorized sizable equity awards, including service-based restricted stock units vesting in 2027, performance-based restricted stock units vesting in 2029 contingent on achieving earnings-per-share growth of 33% versus 2025 and pre-tax profit goals, and long-term service stock units vesting between 2028 and 2031 with post-vesting sale restrictions for certain officers. The package underscores Texas Roadhouse’s emphasis on performance-linked and long-duration equity incentives to retain leadership, align executives with shareholder value creation, and support the company’s growth and profitability objectives over the medium and long term.

The most recent analyst rating on (TXRH) stock is a Hold with a $175.00 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.

Texas Roadhouse’s overall stock score reflects strong financial performance and positive corporate developments, tempered by technical indicators suggesting bearish momentum and valuation concerns. The company’s robust expansion plans and strategic leadership changes are significant positives, while inflationary pressures and margin challenges present risks.

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 specializing in steakhouse-style, full-service restaurants, with a focus on high-volume, family-oriented dining and growth in comparable restaurant traffic and new store openings.

Average Trading Volume: 1,008,841

Technical Sentiment Signal: Buy

Current Market Cap: $11.13B

For a thorough assessment of TXRH stock, go to TipRanks’ Stock Analysis page.