Texas Roadhouse (TXRH) AI Stock Analysis

• Market Cap: $12.51B
• Dividend Yield: 1.63%
• Average Volume (3M): 819.63K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.46
• 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: 888,815
• 30 Day Avg. Volume: 819,635
• 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: 0.95
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 12.19
• Enterprise Value/Ebitda: 16.53
• 1Y Price Target: $190.04
• Price Target Upside: -1.84% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 6.64
• Revenue Forecast (FY): $6.52B

• Rating: 70 Outperform
• Price Target: $208.00 ▲(7.44% Upside)

TXRH scores well primarily on strong financial health (profitability, high ROE, and moderate leverage) and a supportive earnings outlook driven by traffic/revenue strength and expansion. The score is held back by margin/commodity inflation pressures, a somewhat rich P/E with only modest yield, and mixed technicals with price still below the 200-day average.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates expanding market reach and product adoption, strengthening the company's position in the competitive restaurant industry.

Expansion Plans

Aggressive expansion plans indicate strong growth potential and confidence in market demand, enhancing long-term revenue prospects.

Leadership Changes

Strategic leadership changes are expected to drive operational excellence and support the company's growth trajectory, ensuring robust financial management.

Negative Factors

Commodity Inflation

Rising commodity costs, particularly beef prices, could pressure margins and impact profitability, challenging cost management efforts.

Margin Challenges

Decreasing margins due to inflation and operational shifts may hinder profitability, necessitating strategic adjustments to maintain financial health.

Capital Expenditures

High capital expenditures could strain cash flow and limit financial flexibility, impacting the company's ability to invest in other growth opportunities.

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 sale of food and beverages in its restaurants. The company's revenue model is built around its casual dining experience, which encourages repeat visits and customer loyalty. Key revenue streams include dine-in services, takeout, and catering options. Additionally, Texas Roadhouse benefits from its strategic focus on high-quality ingredients and value pricing, which attract a broad customer base. The company also engages in promotional campaigns and seasonal menu offerings to drive sales. While Texas Roadhouse does not typically rely on significant external partnerships, its strong brand recognition and reputation help maintain a loyal customer base, contributing to consistent earnings growth.

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	5.83B	5.37B	4.63B	4.01B	3.46B	2.40B
Gross Profit	975.31M	947.26M	735.08M	653.63M	606.50M	283.59M
EBITDA	718.98M	695.90M	507.47M	459.03M	424.69M	141.22M
Net Income	436.75M	433.59M	304.88M	269.82M	245.29M	31.25M
Balance Sheet
Total Assets	3.27B	3.19B	2.79B	2.53B	2.51B	2.33B
Cash, Cash Equivalents and Short-Term Investments	108.17M	245.22M	104.25M	173.86M	335.64M	363.15M
Total Debt	933.74M	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	1.46B	1.36B	1.14B	1.01B	1.06B	927.50M
Cash Flow
Free Cash Flow	340.53M	399.29M	217.95M	265.60M	268.13M	76.04M
Operating Cash Flow	747.14M	753.63M	564.98M	511.73M	468.83M	230.44M
Investing Cash Flow	-483.89M	-336.90M	-367.17M	-263.73M	-195.10M	-161.10M
Financing Cash Flow	-344.29M	-275.75M	-267.43M	-409.77M	-301.23M	185.94M

Texas Roadhouse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 193.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 193.6 is above the 20-day moving average (MA) of 176.71, above the 50-day MA of 171.20, and above the 200-day MA of 174.21, indicating a bullish trend. The MACD of 5.47 indicates Negative momentum. The RSI at 74.81 is Negative, neither overbought nor oversold. The STOCH value of 98.41 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
CAVA	73 Outperform	$8.19B	62.06	19.84%	―	23.93%	153.50%
TXRH	70 Outperform	$12.51B	28.88	31.55%	1.63%	14.40%	12.45%
EAT	70 Neutral	$7.35B	17.28	249.07%	―	23.18%	138.17%
DPZ	68 Neutral	$13.77B	23.81	―	1.63%	3.92%	4.98%
CAKE	66 Neutral	$3.00B	18.27	39.14%	2.11%	4.90%	27.14%
WING	65 Neutral	$7.63B	44.83	―	0.45%	15.56%	79.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Texas Roadhouse Corporate Events

Texas Roadhouse updates executive compensation with performance incentives

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.

Texas Roadhouse Appoints New CFO and Leadership Team

On December 1, 2025, Texas Roadhouse announced the appointment of Michael Lenihan as Chief Financial Officer, effective December 3, 2025. Lenihan, with nearly 30 years of finance experience, will oversee key financial functions at the company. Additionally, Keith Humpich was promoted to Chief Accounting and Financial Services Officer, and Sean Renfroe was named General Counsel, both effective December 3, 2025. These appointments reflect the company’s strategic focus on strengthening its leadership team to support its growth and operational excellence.

The most recent analyst rating on (TXRH) stock is a Buy 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 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.