Texas Roadhouse (TXRH) AI Stock Analysis

• Market Cap: $11.75B
• Dividend Yield: 1.48%
• Average Volume (3M): 980.42K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.55
• Revenue Growth: 14.59%
• EPS Growth: 18.98%
• Country: US
• Employees: 95,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Restaurants
• EPS (TTM): 1.86
• Shares Outstanding: 66,450,615
• 10 Day Avg. Volume: 1,096,268
• 30 Day Avg. Volume: 980,422
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 13.73
• Enterprise Value/Ebitda: 18.66
• 1Y Price Target: $199.82
• Price Target Upside: 14.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 74 Outperform
• Price Target: $194.00 ▲(10.96% Upside)

Texas Roadhouse's overall stock score reflects strong financial performance and positive earnings call sentiment, indicating robust growth potential. However, technical indicators suggest bearish momentum, and the valuation appears high, which may limit upside potential. The company's strategic expansion and operational efficiency are key strengths, but inflationary pressures on margins remain a concern.

Positive Factors

Menu strategy

Management effectively highlighted value platforms on the menu, appealing to value-focused consumers.

Sales performance

Texas Roadhouse saw stronger than expected revenues with same-store sales growth driven by traffic gains.

Traffic and demand

Traffic increased by 4%, which is impressive and indicates strong customer interest.

Negative Factors

Commodity costs

Texas Roadhouse updated their full year commodity inflation outlook to 5% from 4%, driven by higher beef costs and tariff pressures.

Earnings pressure

Beef inflation affected earnings, causing a slight margin miss.

Inflation impact

Greater than expected cost of goods sold pressure due to accelerated beef inflation impacted profitability.

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: Negative
• Last Price: 174.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXRH, the sentiment is Negative. The current price of 174.84 is below the 20-day moving average (MA) of 178.15, below the 50-day MA of 183.70, and below the 200-day MA of 180.88, indicating a bearish trend. The MACD of -2.66 indicates Negative momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$11.75B	27.05	32.28%	1.48%	14.59%	18.98%
WING	69 Neutral	$9.08B	53.49	-16.09%	0.34%	22.74%	87.07%
EAT	66 Neutral	$7.20B	19.47	186.74%	―	21.95%	146.44%
SHAK	66 Neutral	$4.51B	227.48	4.16%	―	13.13%	-25.05%
CAKE	65 Neutral	$3.09B	18.96	41.01%	1.74%	4.77%	38.24%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
PZZA	60 Neutral	$1.59B	21.25	-20.16%	3.78%	-1.46%	8.10%

Texas Roadhouse Corporate Events

Texas Roadhouse Announces Key Leadership Appointments

On August 14, 2025, Texas Roadhouse, Inc. announced several key leadership appointments as part of its long-term succession planning. Gerald L. Morgan was appointed as Executive Vice Chairman while continuing his role as CEO, and Christopher C. Colson’s title was updated to Chief Business and Administrative Officer to reflect new responsibilities. Lloyd Paul Marshall was named Chief Growth Officer, tasked with overseeing the Bubba’s 33 concept and other growth functions. Additionally, Hugh J. Carroll, President of International, was appointed to the Board, with plans to retire at the end of 2025. These changes are aimed at strengthening the company’s leadership and supporting its strategic growth initiatives.

The most recent analyst rating on (TXRH) stock is a Hold with a $188.00 price target. To see the full list of analyst forecasts on Texas Roadhouse stock, see the TXRH Stock Forecast page.

Texas Roadhouse Q2 2025 Financial Results Announced

Texas Roadhouse, Inc. announced its financial results for the second quarter of 2025, showing a 12.7% increase in total revenue compared to the previous year. The company also declared a quarterly cash dividend of $0.68 per share, to be paid on September 30, 2025. The results highlighted a 5.8% increase in comparable restaurant sales and the opening of five new restaurants. Despite facing commodity and labor inflation, the company maintained growth in earnings per share and restaurant margin dollars. The company continues to focus on expanding its footprint and enhancing shareholder value through strategic capital allocation and franchise acquisitions.

The most recent analyst rating on (TXRH) stock is a Hold with a $188.00 price target. To see the full list of analyst forecasts on Texas Roadhouse stock, see the TXRH Stock Forecast page.

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.