Loading...
•
Sep 30, 2025
Texas Roadhouse Q3 2025 Earnings Report
Texas Roadhouse, Inc. announced financial results for the third quarter ended September 30, 2025.
Key Takeaways
Texas Roadhouse reported a slight decrease in net income and diluted EPS for Q3 2025 compared to the prior year, primarily due to higher depreciation and amortization expenses. However, total revenue increased by 12.8%, driven by strong comparable restaurant sales and higher restaurant margin dollars, despite ongoing commodity and wage inflation.
Total revenue increased by 12.8% to $1.436 billion in Q3 2025.
Diluted earnings per share decreased by 0.8% to $1.25.
Comparable restaurant sales at company restaurants increased by 6.1%.
Restaurant margin percentage decreased by 168 basis points to 14.3% due to commodity and wage inflation.
Revenue by Segment
Forward Guidance
Management updated and reiterated expectations for 2025 and provided initial expectations for 2026, focusing on positive comparable restaurant sales growth, store week growth, and managing inflation.
Positive Outlook
- Positive comparable restaurant sales growth expected for 2025, including menu pricing benefits.
- Store week growth of approximately 5% expected for 2025.
- Positive comparable restaurant sales growth expected for 2026, including 2025 menu pricing benefits.
- Store week growth of 5% to 6% expected for 2026, including franchise acquisitions.
- Capital allocation strategy remains unchanged, funding new store development and enhancing shareholder value.
Challenges Ahead
- Commodity inflation of approximately 6% expected for 2025.
- Wage and other labor inflation of approximately 4% expected for 2025.
- Commodity inflation of approximately 7% expected for 2026.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...