Texas Roadhouse Sees 8.2% Q1 Comp Lift, Plans April Price Hikes
Texas Roadhouse reported an 8.2% increase in same-store sales during the first seven weeks of Q1, outpacing the 5.9% analyst expectation. Q4 EPS came in at $1.28 versus $1.50 consensus and comps rose 4.2%, with management maintaining its 2026 outlook and planning April price hikes to offset 7% commodity inflation.
1. Early Q1 Sales Surge
Texas Roadhouse reported an 8.2% increase in same-store sales over the first seven weeks of Q1, surpassing the 5.9% increase analysts had forecast for the full quarter. The stronger-than-expected demand prompted a 5% jump in shares during after-hours trading.
2. Fourth Quarter Results Miss
In Q4, same-store sales rose 4.2%, below the 5.4% consensus estimate, while EPS of $1.28 fell short of the $1.50 expected. These misses highlighted softer traffic late in the quarter amid shifting consumer confidence.
3. Commodity Cost Headwinds
Elevated beef costs have emerged as a significant drag on profitability, with commodity inflation running near 7% year over year. Management cited sustained cost pressures as the primary factor weighing on margins in the quarter.
4. Outlook and Pricing Strategy
Management reaffirmed its full-year 2026 guidance, expecting continued positive comparable restaurant sales growth alongside roughly 7% commodity inflation. To mitigate rising costs, the company plans to implement price increases in April aimed at preserving margin without undermining demand.