Texas Roadhouse, Inc. (TXRH) AI Stock Analysis

Founded in 1993 and headquartered in Louisville, Kentucky, Texas Roadhouse, Inc. operates and franchises casual dining restaurants in the United States and internationally. Operating under the Texas Roadhouse, Bubba's 33, and Jaggers brands, the company offers a menu featuring hand-cut steaks, ribs, chicken dishes, and freshly baked bread in a Western-themed environment. As of December 2021, the company operated 566 restaurants across the U.S. along with 101 franchise locations. In addition to core restaurant operations, the company participates in community involvement and charitable initiatives.

Between FY2021 and FY2025, revenue expanded from $3.46B to $5.88B, reflecting a 5-year revenue CAGR of 19.6% from FY2020 to FY2025. Annual net income increased from $245.3M in FY2021 to a peak of $433.6M in FY2024, before declining to $405.6M in FY2025 as gross margin contracted from 17.6% to 12.4%. Operating margin finished FY2025 at 8.6%, compared to 9.6% in FY2024. Over the trailing twelve months, revenue totaled $6.23B with net margin at 6.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.1% year-over-year, while quarterly earnings declined 0.5%.

As of June 30, 2026, Texas Roadhouse held $202.4M in cash and short-term investments against total debt of $1.09B, resulting in net debt of $885.1M. Shareholders' equity stood at $1.56B, yielding a debt-to-equity ratio of 0.70, while the current ratio was 0.46. In FY2025, operating cash flow reached $730.1M and free cash flow was $342.1M. Capital allocation in FY2025 included $388.0M for capital expenditures, $180.3M for dividends, and $150.4M for share buybacks, contributing to a 5-year share count reduction of 5.8%.

At a last close of $168.40, Texas Roadhouse has a market cap of $11.05B and an enterprise value of $11.71B. The stock trades at a trailing P/E of 26.9x and a forward P/E of 21.0x, above the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its EV-to-EBITDA multiple is 16.6x versus the peer median of 11.1x, and its price-to-sales is 1.8x against 0.7x. Over the past year, the stock returned -0.9% compared to a 16.8% return for the S&P 500 (SPY), though its 5-year return of 106.7% outperformed SPY's 83.0%.

Texas Roadhouse pays a quarterly dividend with an annualized forward payout of $3.00, yielding 1.78% at a payout ratio of 46.9%. The company has paid dividends for 16 consecutive years and achieved a 5-year annualized dividend growth rate of 49.8%. The most recent ex-dividend date was September 1, 2026.

Wall Street analysts maintain 17 Strong Buy, 2 Buy, 8 Hold, 0 Sell, and 1 Strong Sell ratings on the stock. The mean price target of $210.33 implies 24.9% upside compared to the last close of $168.40. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $6.53B and EPS of $6.53, reflecting 7.1% EPS growth. Texas Roadhouse beat EPS estimates in 1 of the last 4 quarters, with its next earnings report scheduled for November 5, 2026.

This page is an AI-written research summary of Texas Roadhouse, Inc. (TXRH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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