Texas Roadhouse Q4 Sales Rise 4.2% While Margins Drop Three Points
Texas Roadhouse posted Q4 same-store sales growth of 4.2% on a 1.9% traffic gain, and full-year 2025 results showed a 4.9% boost in same-store sales with traffic up 2.8%. Restaurant-level margins fell three percentage points due to elevated beef costs, prompting a 1.9% menu-price increase.
1. Quarterly and Annual Sales Growth
Texas Roadhouse delivered another quarter of consistent growth, with Q4 same-store sales up 4.2% driven by a 1.9% increase in customer traffic. For the full year 2025, same-store sales climbed 4.9% on a 2.8% traffic gain, underscoring the chain’s sustained demand momentum.
2. Margin Pressure and Price Hike
Elevated U.S. beef prices caused restaurant-level margins to contract by three percentage points in Q4, the largest quarterly drop in recent years. Management has approved a 1.9% menu-price increase to offset persistent cost pressures and protect profitability.
3. Tariff Ruling and Protein Cost Outlook
The U.S. Supreme Court struck down prior broad tariff authority, leading to a new 10% global import tariff scheduled for 150 days under alternative rules. This temporary measure may perpetuate high protein costs for casual-dining operators until Congressional action or tariff expiry.