Texas Roadhouse’s first quarter saw a strong positive reaction from the market, reflecting management’s emphasis on traffic growth and operational consistency. The company attributed its performance to a 7.1% rise in same-store sales, powered by a notable 4.5% increase in guest traffic and continued menu appeal. CEO Jerry Morgan underscored that “traffic and mix trends show that our guests continue to trust us to provide an experience worthy of their time and money,” highlighting the brand’s enduring value proposition amidst a competitive landscape.
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Texas Roadhouse (TXRH) Q1 CY2026 Highlights:
- Revenue: $1.63 billion vs analyst estimates of $1.64 billion (12.8% year-on-year growth, in line)
- Adjusted EPS: $1.87 vs analyst estimates of $1.80 (4% beat)
- Adjusted EBITDA: $203.2 million vs analyst estimates of $197.1 million (12.4% margin, 3.1% beat)
- Operating Margin: 9%, in line with the same quarter last year
- Locations: 822 at quarter end, up from 792 in the same quarter last year
- Same-Store Sales rose 7.1% year on year (3.7% in the same quarter last year)
- Market Capitalization: $11.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Texas Roadhouse’s Q1 Earnings Call
- Christopher Carril (KeyBanc Capital Markets) asked for more detail on the 6%-7% commodity inflation guidance and the outlook for beef costs. CFO Mike Lenihan said supply issues remain, but recent demand shifts and improved visibility allowed for the updated outlook.
- Andrew North (Baird) inquired about the timing and magnitude of peak commodity inflation in Q2. Lenihan responded that Q2 is expected to see 7%-8% inflation, moderating later in the year due to contract lapses and forecasted market trends.
- Zachary Fadem (Wells Fargo) questioned the sustainability of traffic outperformance versus the industry. Lenihan highlighted consistent monthly traffic gains and credited operational execution for maintaining a healthy gap over peers.
- Sara Senatore (Bank of America) asked about the rising To-Go mix and its drivers. CEO Jerry Morgan pointed to improvements in digital ordering and operational reliability as key factors, with technology streamlining the off-premise experience.
- Jeffrey Farmer (Gordon Haskett) pressed for further labor productivity gains. Lenihan noted ongoing improvements but said future gains would likely be incremental, with technology and To-Go growth supporting efficiency.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be focused on (1) the pace of new restaurant openings and their contribution to overall sales, (2) the company’s ability to manage commodity and wage inflation through the remainder of the year, and (3) continued growth in To-Go and digital ordering channels. Execution on technology rollouts and the evolving menu pricing strategy will also be important markers for sustained momentum.
Texas Roadhouse currently trades at $180, up from $157.93 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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