Texas Roadhouse Reports 4.9% Same-Store Sales Growth and 26% EPS Decline
Texas Roadhouse’s 2025 revenue reached nearly $5.9 billion with same-store sales growing 4.9%. Q4 EPS declined 26.1% to $1.28 as restaurant margin dollars fell 15.6% and food & beverage costs rose to 36.4% of sales, and management forecasts 7% commodity inflation with a 1.9% menu increase in Q2 2026.
1. Full-Year 2025 Performance
Texas Roadhouse generated nearly $5.9 billion in revenue for 2025, marking a 4.9% increase in same-store sales and average unit volumes above $8.4 million. The company opened its 800th restaurant and achieved 60 consecutive quarters of comparable sales growth across all three brands.
2. Q4 Results and Margin Pressure
Fourth-quarter revenue rose 3.1% with average weekly sales up 4%, but restaurant margin dollars fell 15.6% to $205 million and EPS slid 26.1% to $1.28. Food and beverage costs climbed to 36.4% of sales, driven by 9.5% commodity inflation in beef and entree shifts.
3. Operational Investments and Community Initiatives
The rollout of the Digital Kitchen and upgraded guest management systems reached completion, and handheld devices supported to-go capacity of about $22,000 weekly. The company purchased its Louisville support center, raised over $40 million for schools through Dine to Donate and provided 1.2 million meals to veterans.
4. 2026 Guidance and Capital Returns
Management projects roughly 7% commodity inflation for 2026, plans a 1.9% menu price increase in Q2, and expects $400 million in capital expenditures. Texas Roadhouse generated over $730 million of operating cash flow in 2025 and returned $180 million in dividends and $150 million in buybacks.