Texas Roadhouse Q1 Revenue Rises 12.8% to $1.63B, EPS Up 9.6%
TXRH•Texas Roadhouse reported first-quarter revenue of $1.633 billion, a 12.8% increase, with net income of $123.4 million and diluted EPS of $1.87, up 8.6% and 9.6% respectively. Comparable restaurant sales climbed 7.1% driven by average weekly sales of $174,151, while capex and franchise acquisitions totaled $152 million.
1. Financial Results
For the 13 weeks ended March 31, 2026, Texas Roadhouse generated revenue of $1.633 billion, up 12.8% from last year, with income from operations rising 8.6% to $146.3 million. Net income reached $123.4 million, while diluted EPS grew 9.6% to $1.87 per share.
2. Operating Metrics
Comparable restaurant sales at company locations increased 7.1%, supported by average weekly sales of $174,151, including $25,374 in to-go sales. Restaurant margin dollars climbed 10.5% to $264.4 million despite a 6.2% rise in commodity costs and 3.8% higher labor expenses.
3. Capital Allocation and Growth
During Q1 the company opened four new company-owned and two franchise restaurants, invested $80.2 million in capital expenditures and $71.8 million in franchise acquisitions, paid $49.4 million in dividends and repurchased $28.2 million of common stock.
4. Outlook and Guidance
Through the first five weeks of Q2, comparable sales are up 6.5%, and a 1.9% menu price increase was implemented in April. Management forecasts 6%–7% commodity inflation, 3%–4% labor inflation, 5%–6% store week growth, and approximately $400 million in total capital spending for 2026.
