Texas Roadhouse (TXRH) AI Stock Analysis

• Market Cap: $12.09B
• Dividend Yield: 1.41%
• Average Volume (3M): 790.48K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.60
• Revenue Growth: 15.09%
• EPS Growth: 31.24%
• Country: US
• Employees: 95,000
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Restaurants
• EPS (TTM): 1.86
• Shares Outstanding: 66,341,650
• 10 Day Avg. Volume: 780,166
• 30 Day Avg. Volume: 790,484
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 13.16
• Enterprise Value/Ebitda: 16.81
• 1Y Price Target: $202.11
• Price Target Upside: 10.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 74 Outperform
• Price Target: $207.00 ▲(13.59% Upside)

Texas Roadhouse's overall stock score is driven by strong financial performance and positive earnings call highlights, including revenue growth and successful expansion. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. Inflationary pressures on commodities and labor costs pose risks to margins, which investors should monitor closely.

Positive Factors

Expansion Plans

TXRH is on track to open around 30 co-op stores in fiscal year 2025, indicating expansion plans.

Revenues

Revenues of $1.45B outpaced consensus estimates driven by better-than-expected same-store sales of 3.5%.

Technology Advancements

The digital kitchen is now in approximately 65% of units with a full rollout expected by year-end, enhancing operational efficiency.

Negative Factors

Commodity Inflation

Texas Roadhouse increased its full-year commodity inflation outlook to 4% due to stronger consumer demand and potential tariff-related frictions.

Cost Pressures

Cost pressures for Texas Roadhouse delivered 40bps of downside for the quarter, resulting in EPS below consensus.

Traffic Trends

Data suggest a soft patch for traffic without upcoming catalysts to reverse the trend or interrupt narratives of competitive pressures.

Texas Roadhouse Business Overview & Revenue Model

Company Description

Texas Roadhouse, Inc. is an American chain of casual dining restaurants specializing in steaks and promoting a Southwestern and Texan theme. Founded in 1993 and headquartered in Louisville, Kentucky, the company operates more than 600 locations across the United States and internationally. The menu primarily features a variety of seasoned and hand-cut steaks, ribs, chicken, and seafood, complemented by a selection of sides and freshly baked bread. Texas Roadhouse is known for its lively, family-friendly atmosphere and commitment to providing high-quality meals at an affordable price.

How the Company Makes Money

Texas Roadhouse generates revenue primarily through the operation of its restaurants, where it earns money from the sale of food and beverages. The company's revenue model is centered on providing a distinctive dining experience with high-quality meals, which encourages repeat customer visits and enhances word-of-mouth marketing. Key revenue streams include dine-in services, takeout orders, and gift card sales. Additionally, Texas Roadhouse benefits from its franchise model, where franchisees pay royalty fees based on a percentage of their sales. The company's earnings are also influenced by efficient supply chain management, strategic location selection, and maintaining a strong brand reputation in the competitive casual dining sector.

Texas Roadhouse Financial Statement Overview

Summary

Texas Roadhouse exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is stable with moderate leverage, and strong cash flow generation supports ongoing operations and investments.

Income Statement

Texas Roadhouse has demonstrated strong revenue growth, with a notable increase from $4.01 billion in 2022 to $5.49 billion in TTM 2025, reflecting a positive growth trajectory. The gross profit margin has shown consistency, maintaining around 16.5% in TTM 2025. The net profit margin has slightly improved to 7.9% in TTM 2025. EBIT and EBITDA margins have remained strong at 9.5% and 12.9% respectively, indicating efficient operational performance.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.66 in TTM 2025, showing a reasonable level of leverage. Return on equity (ROE) is strong at 31.5%, reflecting effective use of equity capital. The equity ratio stands at 43.2%, indicating a stable financial structure, but there is room for improvement in reducing liabilities.

Cash Flow

Operating cash flow to net income ratio is robust at 1.72 in TTM 2025, indicating strong cash generation relative to net income. The free cash flow to net income ratio has improved to 1.09, showing efficient cash management. Free cash flow growth is positive, with a notable increase from $399.3 million in 2024 to $471.3 million in TTM 2025.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.37B	4.63B	4.01B	3.46B	2.40B
Gross Profit	947.26M	735.08M	653.63M	606.50M	283.59M
EBITDA	695.90M	507.47M	459.03M	424.69M	143.98M
Net Income	433.59M	304.88M	269.82M	245.29M	31.25M
Balance Sheet
Total Assets	3.19B	2.79B	2.53B	2.51B	2.33B
Cash, Cash Equivalents and Short-Term Investments	245.22M	104.25M	173.86M	335.64M	363.15M
Total Debt	854.47M	773.69M	753.36M	722.89M	812.17M
Total Liabilities	1.82B	1.64B	1.50B	1.44B	1.38B
Stockholders Equity	1.36B	1.14B	1.01B	1.06B	927.50M
Cash Flow
Free Cash Flow	399.29M	217.95M	265.60M	268.13M	76.04M
Operating Cash Flow	753.63M	564.98M	511.73M	468.83M	230.44M
Investing Cash Flow	-336.90M	-367.17M	-263.73M	-195.10M	-161.10M
Financing Cash Flow	-275.75M	-267.43M	-409.77M	-301.23M	185.94M

Texas Roadhouse Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 182.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXRH, the sentiment is Neutral. The current price of 182.23 is below the 20-day moving average (MA) of 185.58, below the 50-day MA of 188.73, and above the 200-day MA of 181.45, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 30.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TXRH.

Texas Roadhouse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	77 Outperform	$3.07B	18.96	41.01%	1.73%	4.77%	38.24%
TXRH	74 Outperform	$12.09B	28.10	33.55%	1.41%	15.09%	31.24%
WING	72 Outperform	$9.45B	56.58	-16.09%	0.30%	22.74%	87.07%
EAT	71 Outperform	$7.05B	21.95	314.08%	―	19.80%	117.96%
SHAK	66 Neutral	$4.87B	243.31	4.16%	―	13.13%	-25.05%
Sector *	61 Neutral	$16.54B	10.12	-9.02%	3.34%	1.44%	-22.51%
PZZA	55 Neutral	$1.32B	17.02	-20.16%	4.40%	-2.77%	4.01%

Texas Roadhouse Corporate Events

Texas Roadhouse Holds Annual Shareholders Meeting

On May 15, 2025, Texas Roadhouse, Inc. held its Annual Meeting of Shareholders, where several key decisions were made. The election of directors saw all nominees successfully appointed to the board. Additionally, the selection of KPMG LLP as the independent auditors for fiscal year 2025 was ratified. The executive compensation package was approved, while a shareholder proposal for the disclosure of the company’s Consolidated EEO-1 Report was not passed.

The most recent analyst rating on (TXRH) stock is a Hold with a $184.00 price target. To see the full list of analyst forecasts on Texas Roadhouse stock, see the TXRH Stock Forecast page.

Texas Roadhouse Approves Quarterly Cash Dividend

On May 7, 2025, Texas Roadhouse‘s Board of Directors approved a quarterly cash dividend of $0.68 per share, to be distributed on July 1, 2025. The company reported a 9.6% increase in total revenue for the first quarter of 2025 compared to the previous year, with comparable restaurant sales rising by 3.5%. Despite challenges such as commodity and labor inflation, Texas Roadhouse opened eight new restaurants and continued its capital allocation strategy, including significant investments in franchise acquisitions and share repurchases. CEO Jerry Morgan emphasized the company’s commitment to growth through new store development and capital returns to shareholders.