Texas Roadhouse Q1 revenue up 13%, as comparable restaurant sales rose

Texas Roadhouse

07/05/2026 21:30

Overview

U.S. casual dining chain's Q1 revenue rose 13% but slightly missed analyst expectations

Diluted EPS for Q1 rose 10% year-over-year

Comparable restaurant sales increased 7.1%, driven by higher traffic and menu pricing

Outlook

Company expects 2026 commodity inflation of 6% to 7%

Texas Roadhouse sees 2026 store week growth of 5% to 6%, including franchise acquisitions

Company expects 2026 wage and other labor inflation of 3% to 4%

Result Drivers

HIGHER SALES AND TRAFFIC - Comparable restaurant sales rose 7.1% and store weeks increased 5.7%, driven by strong traffic trends and higher average weekly sales

COST INFLATION PRESSURE - Restaurant margin as a percentage of sales fell 36 basis points due to commodity inflation of 6.2% and wage and other labor inflation of 3.8%, partially offset by higher sales

NEW RESTAURANTS AND ACQUISITIONS - Four company restaurants and two franchise restaurants were opened, contributing to store week growth

Company press release: ID:nGNXhSYZh

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$1.63 bln
$1.64 bln (25 Analysts)
Q1 EPS
$1.87
Q1 Net Income
$123.43 mln
Q1Income from operations
$146.34 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 18 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Texas Roadhouse Inc is $190.00, about 19% above its May 6 closing price of $159.69

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)