Texas Roadhouse (TXRH) AI Stock Analysis

• Market Cap: $12.70B
• Dividend Yield: 1.31%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.63
• Revenue Growth: 15.09%
• EPS Growth: 31.24%
• Country: US
• Employees: 95,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Restaurants
• EPS (TTM): 1.70
• Shares Outstanding: 66,341,650
• 10 Day Avg. Volume: 1,336,469
• 30 Day Avg. Volume: 1,230,705
• PEG Ratio: 2.46
• Price to Book (P/B): 8.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.08
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 13.32
• Enterprise Value/Ebitda: 5.07
• 1Y Price Target: $190.50
• Price Target Upside: 1.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $195.00 ▲( 4.22% Upside)

Texas Roadhouse's strong financial performance and strategic expansion plans contribute positively to its overall score. While the technical indicators suggest caution due to potential overbought conditions, the company's robust revenue growth and effective cost management are significant strengths. Valuation remains a concern, with a relatively high P/E ratio, but the company's strategic initiatives and dividend policy support a favorable outlook.

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%.

Sales Performance

Same-store sales rebounded strongly in March to drive record average weekly sales for all three brands.

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 and Competition

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., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names. As of December 28, 2021, it operated 566 domestic restaurants and 101 franchise restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

How the Company Makes Money

Texas Roadhouse generates revenue primarily through the operation of its restaurants, where sales of food and beverages are the main source of income. The company's revenue model is based on high customer volume, driven by its reputation for quality, value, and service. Key revenue streams include dine-in sales, carry-out services, and catering options. Additionally, Texas Roadhouse benefits from its loyalty programs and gift card sales, which encourage repeat business. The company also engages in franchising some of its locations, providing an additional source of revenue through franchise fees and royalties. Overall, the company's earnings are bolstered by its strategic location selection, strong brand identity, and operational efficiencies that help maintain profitability.

Texas Roadhouse Financial Statement Overview

Summary

Texas Roadhouse presents a strong financial profile with notable revenue and profit growth, stable leverage ratios, and excellent cash flow generation. The company continues to expand its profitability and maintain a solid balance sheet, positioning it well for future growth. However, increasing debt levels should be monitored to ensure long-term financial stability.

Income Statement

Texas Roadhouse demonstrates robust revenue growth with a significant increase of 16% from 2023 to 2024. Gross profit margin is strong at 32.4%, and net profit margin has improved to 8.1%, indicating efficient cost management. The EBIT margin of 9.6% and EBITDA margin of 13% further reflect healthy operational performance. Overall, the income statement shows a trajectory of increasing profitability and growth.

Balance Sheet

The balance sheet of Texas Roadhouse is solid, with a manageable debt-to-equity ratio of 0.63. The company maintains a strong equity ratio of 42.6%, showcasing a stable financial position. Return on equity is impressive at 31.9%, indicating efficient use of shareholder funds. However, the total debt has increased, which could pose potential risks if growth slows.

Cash Flow

Texas Roadhouse shows strong cash flow performance, with a substantial increase in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is robust at 1.74, while the free cash flow to net income ratio stands at 1.74, indicating excellent cash generation. Overall, the cash flow statement suggests effective cash management and a solid liquidity position.

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
	EBIT
516.52M	353.99M	320.20M	297.19M	23.84M
	EBITDA
695.90M	507.47M	459.03M	424.69M	143.98M
	Net Income Common Stockholders
433.59M	304.88M	269.82M	245.29M	31.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
245.22M	104.25M	173.86M	335.64M	363.15M
	Total Assets
3.19B	2.79B	2.53B	2.51B	2.33B
	Total Debt
854.47M	773.69M	753.36M	722.89M	812.17M
	Net Debt
609.25M	669.44M	579.50M	387.25M	449.02M
	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: Positive
• Last Price: 187.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 187.1 is above the 20-day moving average (MA) of 177.51, above the 50-day MA of 171.05, and above the 200-day MA of 176.78, indicating a bullish trend. The MACD of 6.65 indicates Negative momentum. The RSI at 63.03 is Neutral, neither overbought nor oversold. The STOCH value of 81.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXRH.

Texas Roadhouse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	76 Outperform	$12.70B	29.51	33.55%	1.31%	15.09%	31.24%
CAKE	73 Outperform	$2.66B	16.84	46.60%	2.01%	4.42%	48.23%
WING	70 Outperform	$9.15B	54.99	-16.09%	0.31%	30.98%	112.65%
EAT	68 Neutral	$6.67B	19.85	314.08%	―	19.80%	117.96%
SHAK	68 Neutral	$5.00B	397.22	2.70%	―	14.07%	-47.47%
PZZA	62 Neutral	$1.34B	17.28	-20.16%	4.51%	-2.77%	4.01%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%

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.

Texas Roadhouse Secures New Credit Facility Agreement

On April 24, 2025, Texas Roadhouse, Inc. entered into a new five-year unsecured revolving credit facility agreement with a syndicate of commercial lenders led by JPMorgan Chase Bank and PNC Bank. This agreement replaces the previous credit facility from 2017, allowing the company to borrow up to $450 million, with an option to increase by an additional $250 million. The credit facility includes financial covenants and a maturity date of April 24, 2030. At the time of the agreement, no borrowings were made, and the previous credit facility was terminated without any amounts drawn.