Highlights

  • Q2 2026 total revenue was $1,679,976 thousand, and net income attributable to Texas Roadhouse was $121,933 thousand, or $1.85 diluted.
  • Comparable restaurant sales at company restaurants increased 6.2% and store weeks increased 5.0% in the second quarter of 2026.
  • Restaurant margin was 16.4% of restaurant and other sales, compared with 17.1%, with commodity inflation of 7.0%.
  • The company expects 2026 capital expenditures of approximately $400 million and had $50.0 million of borrowings under its credit facility.

Texas Roadhouse (NASDAQ:TXRH) shares were trading at USD 176.25 on October 28, 2026, up 5.72%, with a relative volume at time of 3.12. The restaurant company filed its Form 10-Q for the second quarter ended June 30, 2026 on August 7, 2026.

Texas Roadhouse, Inc. is a Delaware corporation headquartered in Louisville, Kentucky. The late founder W. Kent Taylor started the company in 1993 with the first restaurant in Clarksville, Indiana. It operates predominantly in the casual dining segment with three concepts: Texas Roadhouse, Bubba's 33 and Jaggers. As of June 30, 2026, there were 832 restaurants in 49 states, one U.S. territory and ten foreign countries, including 732 company restaurants and 100 franchise restaurants. Fiscal year 2026 is 52 weeks in length, and the quarters are 13 weeks.

Second Quarter 2026 Results

Total revenue for the 13 weeks ended June 30, 2026 was $1,680.0 million, compared with $1,512.1 million in Q2 2025, an increase of 11.1%. The company attributed the increase in comparable restaurant sales to higher guest traffic and a higher per person average check.

Income from operations was $142,788 thousand, compared with $146,341 thousand. Net income attributable to Texas Roadhouse was $121,933 thousand, compared with $124,085 thousand, and diluted earnings per share were $1.85, compared with $1.86. Net income decreased $2.2 million, or 1.7%. The company said the increase in restaurant margin dollars was more than offset by increases in pre-opening, depreciation and amortization, and general and administrative expenses.

Restaurant margin, a non-GAAP measure, was $275.1 million, compared with $257.3 million. As a percentage of restaurant and other sales, it decreased to 16.4% from 17.1%, primarily due to commodity inflation of 7.0% and wage and other labor inflation of 3.9%, partially offset by higher sales.

For the 26 weeks, total revenue was $3,313,142 thousand and net income attributable to Texas Roadhouse was $245,366 thousand, compared with $237,747 thousand.

Cash Flow, Credit Facility and Capital Returns

Cash provided by operating activities was $180.1 million in the quarter. Capital allocation spend included capital expenditures of $98.7 million, dividends of $49.3 million and repurchases of common stock of $42.6 million. For the 26 weeks, net cash provided by operating activities was $439,227 thousand. Cash and cash equivalents were $202,427 thousand at the end of the period.

The company declared dividends of $0.75 per share, compared with $0.68 per share a year earlier. In the quarter, it paid $42.6 million to repurchase 253,918 shares. For the 26 weeks, it paid $70.8 million to repurchase 415,133 shares. At June 30, 2026, $309.2 million remained under its authorized stock repurchase program.

Texas Roadhouse has an unsecured revolving credit facility with borrowing capacity of up to $450.0 million, maturing April 24, 2030. At June 30, 2026, it had $50.0 million in outstanding borrowings and $397.6 million of availability, net of $2.4 million of letters of credit. It had no outstanding borrowings at December 30, 2025.

Restaurant Base and Ownership

Of the 732 company restaurants, 712 were wholly owned and 20 were majority owned. The company operated 662 as Texas Roadhouse restaurants, 59 as Bubba's 33 restaurants and 11 as Jaggers restaurants. Of the 100 franchise restaurants, 31 were domestic Texas Roadhouse restaurants, six were domestic Jaggers restaurants, 62 were international Texas Roadhouse restaurants and one was an international Jaggers restaurant.

The company holds contractual arrangements to acquire equity interests in 18 of the 20 majority-owned company restaurants and 32 of the 37 systemwide domestic franchise restaurants at pre-determined formulas.

Outlook

The filing does not provide numerical earnings guidance. The company said it intends to satisfy its capital requirements over the next 12 months with cash on hand, net cash provided by operating activities and, if needed, funds available under its revolving credit facility. In 2026, it expects capital expenditures of approximately $400 million.