Texas Roadhouse (TXRH) AI Stock Analysis

• Market Cap: $11.07B
• Dividend Yield: 1.61%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.52
• Revenue Growth: 14.40%
• EPS Growth: 12.45%
• Country: US
• Employees: 95,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.25
• Shares Outstanding: 66,146,080
• 10 Day Avg. Volume: 1,459,807
• 30 Day Avg. Volume: 1,145,155
• PEG Ratio: 0.65
• Price to Book (P/B): 8.87
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 30.16
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 16.60
• 1Y Price Target: $189.40
• Price Target Upside: 13.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 6.37
• Revenue Forecast (FY): $5.90B

• Rating: 74 Outperform
• Price Target: $188.00 ▲(12.35% Upside)

Texas Roadhouse's strong financial performance and robust expansion plans are key strengths, driving a positive outlook. However, technical indicators suggest potential short-term weakness, and valuation metrics indicate the stock may be overvalued. Inflationary pressures and margin challenges are notable risks that could impact future profitability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability.

Expansion Plans

Aggressive expansion plans demonstrate confidence in market potential and can drive future revenue growth and market share.

Technology Advancements

Technology upgrades improve operational efficiency and customer experience, supporting long-term competitive advantage.

Negative Factors

Commodity Inflation

Rising commodity costs can pressure margins and profitability, challenging cost management and pricing strategies.

Margin Challenges

Declining margins indicate potential operational inefficiencies or cost pressures, impacting profitability and financial health.

Higher Capital Expenditures

Increased capital expenditures may strain cash flow, requiring careful financial management to support growth without overleveraging.

Texas Roadhouse Business Overview & Revenue Model

Company Description

Texas Roadhouse (TXRH) is a popular American chain of restaurants known for its casual dining experience, specializing in hand-cut steaks, made-from-scratch sides, and fresh-baked bread with cinnamon butter. Founded in 1993 and headquartered in Louisville, Kentucky, the company operates primarily in the restaurant sector, offering a vibrant atmosphere with a Western theme. Texas Roadhouse targets families and groups seeking a hearty meal, providing a menu that includes a variety of steak cuts, ribs, chicken dishes, salads, and desserts, complemented by a selection of alcoholic beverages.

How the Company Makes Money

Texas Roadhouse generates revenue primarily through the sale of food and beverages in its restaurants. The company operates a high-volume dining model, focusing on providing an exceptional dining experience that encourages repeat visits. Key revenue streams include dine-in sales, takeout, and catering services. The chain's strategic emphasis on quality ingredients and customer service drives customer loyalty, contributing to increased sales per location. Additionally, Texas Roadhouse benefits from a loyal customer base and a strong brand presence, supported by effective marketing campaigns and community engagement. The company also maintains cost efficiencies through its supply chain management and in-house food preparation, which help maximize profit margins. Although Texas Roadhouse does not heavily rely on franchising, it does engage in limited partnerships that can enhance brand visibility and reach in various markets.

Texas Roadhouse Financial Statement Overview

Summary

Texas Roadhouse exhibits solid financial health with strong revenue growth and profitability. The balance sheet is stable, with manageable leverage and impressive returns on equity. While cash flow generation is strong, the decline in free cash flow growth highlights the need for enhanced cash management strategies.

Income Statement

Texas Roadhouse has demonstrated strong revenue growth with a 3.11% increase in TTM, supported by a solid gross profit margin of 20.14%. The net profit margin is healthy at 7.72%, indicating effective cost management. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.64 indicates a balanced approach to leverage, while the return on equity is robust at 31.87%, reflecting strong profitability. The equity ratio stands at 44.56%, showcasing a stable financial structure. However, the increase in total debt over the years warrants monitoring.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.04, indicating good cash generation relative to net income. However, the free cash flow growth rate has declined by 5.18%, and the free cash flow to net income ratio is moderate at 50.32%, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.67B	5.37B	4.63B	4.01B	3.46B	2.40B
Gross Profit	973.59M	947.26M	735.08M	653.63M	606.50M	283.59M
EBITDA	716.02M	695.90M	507.47M	459.03M	424.69M	141.22M
Net Income	437.99M	433.59M	304.88M	269.82M	245.29M	31.25M
Balance Sheet
Total Assets	3.26B	3.19B	2.79B	2.53B	2.51B	2.33B
Cash, Cash Equivalents and Short-Term Investments	176.80M	245.22M	104.25M	173.86M	335.64M	363.15M
Total Debt	922.91M	854.47M	770.89M	753.36M	744.84M	831.44M
Total Liabilities	1.79B	1.82B	1.64B	1.50B	1.44B	1.38B
Stockholders Equity	1.45B	1.36B	1.14B	1.01B	1.06B	927.50M
Cash Flow
Free Cash Flow	373.49M	399.29M	217.95M	265.60M	268.13M	76.04M
Operating Cash Flow	742.26M	753.63M	564.98M	511.73M	468.83M	230.44M
Investing Cash Flow	-450.27M	-336.90M	-367.17M	-263.73M	-195.10M	-161.10M
Financing Cash Flow	-312.64M	-275.75M	-267.43M	-409.77M	-301.23M	185.94M

Texas Roadhouse Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 167.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 167.34 is below the 20-day moving average (MA) of 168.90, above the 50-day MA of 167.11, and below the 200-day MA of 174.91, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 86.32 is Negative, 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
TXRH	74 Outperform	$11.07B	25.56	31.55%	1.61%	14.40%	12.45%
CAVA	69 Neutral	$5.48B	40.70	19.84%	―	23.93%	153.50%
EAT	67 Neutral	$5.03B	11.74	249.07%	―	23.18%	138.17%
CAKE	67 Neutral	$2.24B	13.65	39.14%	2.40%	4.90%	27.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DPZ	58 Neutral	$13.86B	23.97	―	1.64%	3.92%	4.98%
WING	58 Neutral	$6.47B	38.02	―	0.47%	15.56%	79.02%

Texas Roadhouse Corporate Events

Texas Roadhouse Earnings Call: Growth Amid Challenges

Texas Roadhouse’s recent earnings call highlighted a dynamic blend of achievements and challenges. The company showcased robust revenue growth and ambitious expansion plans, yet faced hurdles such as commodity inflation and declining margins. Despite these financial pressures, significant strides were made in consumer engagement and development, painting a complex picture of the company’s current standing.

Texas Roadhouse Reports Steady Revenue Growth in Q3 2025

Texas Roadhouse, Inc. is a prominent player in the casual dining sector, known for its Texas-themed restaurants offering American cuisine, with a significant presence in the United States and several international locations.

Texas Roadhouse Declares Quarterly Dividend Amid Revenue Growth

On November 5, 2025, Texas Roadhouse‘s Board of Directors approved a quarterly cash dividend of $0.68 per share, payable on December 30, 2025. The company reported a 12.8% increase in total revenue for the third quarter of 2025 compared to the previous year, despite a slight decrease in net income. The company opened seven new company restaurants and two franchise restaurants during this period. Texas Roadhouse plans to continue its growth strategy through new store development and franchise acquisitions, while managing inflationary pressures and maintaining shareholder value through dividends and share repurchases.

The most recent analyst rating on (TXRH) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Texas Roadhouse stock, see the TXRH Stock Forecast page.