Texas Roadhouse Q2 revenue slightly beats estimates on higher comparable sales
TXRH•Cost pressures weighed on margins and EPS
Commodity inflation of 7.0% and wage and other labor inflation of 3.9% reduced restaurant margin percentage and contributed to lower EPS.
Opening new company and franchise restaurants also helped revenue growth, but increased pre-opening and administrative expenses.
Q2 results top revenue estimates on higher comparable sales
U.S. casual dining chain Texas Roadhouse said second-quarter revenue rose 11% and slightly beat analyst expectations, as higher comparable restaurant sales and increased store weeks drove record average weekly sales and boosted restaurant margin dollars.
Diluted earnings per share for the quarter fell 0.7% year-over-year amid higher expenses.
The company also raised its quarterly dividend to $0.75 per share.
2026 outlook and analyst coverage
Texas Roadhouse expects 2026 commodity inflation of about 5%, store week growth of 5% to 6%, and wage and labor inflation of 3% to 4%.
The current average analyst rating on the shares is "buy", with 14 "strong buy" or "buy", 14 "hold", and no or recommendations.
