At a glance
Texas Roadhouse Inc is worth $11.47B, about 29 times its fiscal 2025 earnings. Revenue grew 9.4% to $5.88B in fiscal 2025, with 6.9% kept as profit; over 5 years it has grown 19.6% a year. It pays a 1.68% dividend yield, raised every year for at least 5 years, and returned $1.24B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +3.0% over the past year with dividends reinvested and +16.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 57.2% in the 2020 crash (S&P 500: 33.7%) and 25.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 3 months after the lows.
The business in plain English
Texas Roadhouse, Inc. runs restaurants, mostly in casual dining: moderately priced, full-service places a step below fine dining. Its namesake chain serves steaks hand-cut daily and cooked over open grills, plus ribs, chicken, seafood and burgers, with free peanuts and fresh-baked rolls for dine-in guests. Its other brands are Bubba's 33, a sports-themed restaurant known for burgers, pizza and wings, and Jaggers, a fast-casual burger and chicken chain with drive-thru service.
The company makes money by selling meals, and it owns and runs most of its restaurants rather than franchising them. As of December 30, 2025, it operated 714 locations: 648 Texas Roadhouse, 56 Bubba's 33 and ten Jaggers. Franchisees, independent owners who license a brand, ran another 102. Revenue reached $5.88 billion in fiscal 2025, up 9.4%. Texas Roadhouse and Bubba's 33 are the two segments it reports separately, and Texas Roadhouse is by far the larger by restaurant count.
Almost all restaurants are in U.S. states: 755 of 816. Texas alone has 108, and about 21% of company-owned restaurants are in Texas and Florida. All 61 locations abroad and in Puerto Rico are franchised, led by 25 in the Philippines. Nearly all Texas Roadhouse restaurants focus on dinner during the week, and the company skips national TV and print ads in favor of local marketing.
Price history
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TXRH +3.0% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.68B, up 11.1% from a year earlier, and net income was $121.9M (-1.7%).
- For fiscal 2025, revenue was $5.88B (+9.4% year over year; +19.6% a year from FY2020 to FY2025) with a 6.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +19.6% good |
|---|---|
| Operating margin | 8.1% watch |
| Free cash flow margin | 5.8% watch |
| Return on equity (FY2025) | 27.8% good |
| Return on assets (FY2025) | 11.4% good |
| Net cash (cash minus debt) | $152.4M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.40B | $31.3M | $76.0M |
| FY2021 | $3.46B | $245.3M | $268.1M |
| FY2022 | $4.01B | $269.8M | $265.6M |
| FY2023 | $4.63B | $304.9M | $217.9M |
| FY2024 | $5.37B | $433.6M | $399.3M |
| FY2025 | $5.88B | $405.6M | $342.1M |
Valuation snapshot
| Market value | $11.47B |
|---|---|
| P/E ratio | 28.6 |
| Dividend yield | 1.68% |
Rank among 1514 US companies
Market value at each year end
Texas Roadhouse’s market value went from $3.40B at the end of 2016 to $11.47B on Oct 28, 2026, about 3.4 times as much; since the end of 2025 it is up 4%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $11.47B | +4.5% |
| 2025 | $10.98B | -8.8% |
| 2024 | $12.04B | +47.5% |
| 2023 | $8.16B | +34.1% |
| 2022 | $6.09B | -2.1% |
| 2021 | $6.22B | +14.5% |
| 2020 | $5.43B | +38.9% |
| 2019 | $3.91B | -8.5% |
| 2018 | $4.27B | +14.0% |
| 2017 | $3.75B | +10.1% |
| 2016 | $3.40B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TXRH price data to Oct 28, 2026 | +6.6% | +3.0% | +23.3% | +16.3% | +17.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +6.6% |
| 2025 | -6.6% |
| 2024 | +49.8% |
| 2023 | +37.2% |
| 2022 | +4.1% |
| 2021 | +15.7% |
| 2020 | +39.8% |
| 2019 | -3.6% |
| 2018 | +15.1% |
| 2017 | +11.2% |
| 2016 | +37.1% |
| 2015 | +7.9% |
| 2014 | +24.1% |
| 2013 | +68.9% |
| 2012 | +15.8% |
| 2011 | -11.4% |
| 2010 | +52.9% |
| 2009 | +44.9% |
| 2008 | -29.9% |
| 2007 | -16.6% |
| 2006 | -14.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 33% over that stretch · deepest drop along the way 66.2%, back to its old high 15.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 39% over that stretch · deepest drop along the way 57.2%, back to its old high 6.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 6.4% over that stretch · deepest drop along the way 25.9%, back to its old high 2.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 17 sales ($7.6M), 2 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 21, 2026 | Gerald L. Morgan CEO, EXECUTIVE VICE CHAIRMAN, Director | sell (plan) | $3.0M |
| Mar 13, 2026 | Hernan E. Mujica CHIEF TECHNOLOGY OFFICER | sell | $850K |
| Mar 19, 2026 | Regina A. Tobin PRESIDENT | sell | $761K |
| Aug 11, 2026 | Gregory N Moore Director | sell | $625K |
| May 11, 2026 | Curtis Warfield Director | sell | $483K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.3% | Mar 31, 2025 |
| Capital World Investors | 6.7% | Mar 31, 2026 |
| AQR Capital Management, LLC | 5.49% | Mar 31, 2026 |
| Vanguard Capital Management | 5.26% | Mar 31, 2026 |
| AllianceBernstein L.P. | 4.6% | Dec 31, 2025 |
ETFs with the most weight in TXRH
| OSCV Opus Small Cap Value ETF | 2.53% |
| SMIG Bahl & Gaynor Small/Mid Cap Income Growth ETF | 2.17% |
| GRPM Invesco S&P MidCap 400 GARP ETF | 2.15% |
| OUSM ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF | 2.07% |
| GDIV Harbor Dividend Growth Leaders ETF | 1.56% |
| RFG Invesco S&P MidCap 400® Pure Growth ETF | 1.48% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 1.18% |
| FSGS First Trust SMID Growth Strength ETF | 1.07% |
What could go wrong
- Beef inflation is squeezing restaurant margins. Steaks are the core of its menu. The company reported higher-than-normal beef inflation in fiscal 2025 that hurt restaurant margins, and expected it to continue into 2026. Competition may limit menu price increases.
- Heavy exposure to Texas and Florida. About 21% of company-owned restaurants are in Texas and Florida. An economic slowdown, new state rules or other trouble in those two states could hit results harder than at a more spread-out chain.
- Growth depends on costly new restaurants. Growth relies on opening profitable new locations. An average new Texas Roadhouse required about $8.3 million of investment in 2025, expected to reach $8.9 million for 2026 openings. New markets may produce lower sales.
- Rising wages and hard-to-fill jobs. Full-service restaurants need many workers, and the company gives each server few tables. Higher wages or a shortage of staff, especially the managing partners who run each restaurant, could raise costs and slow growth.
- Food safety and reputation scares. A food-borne illness outbreak, viral social media post or negative publicity could keep guests away from many restaurants at once. Health or environmental concerns about eating beef could also shift diners' habits.
- Diners cut back when budgets tighten. Eating out is easy to skip. A weaker economy or shifting tastes could reduce guest visits, and the company competes with many other restaurants for the same diners.
Recent events
- Quarterly results released; Other company announcement
- Shareholder vote results
- Quarterly results released; Other company announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Executive or board change; Other company announcement
- Executive or board change
- Executive or board change
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Other company announcement
For income and retirement investors
Texas Roadhouse has raised its dividend five years in a row, from $0.36 a share in fiscal 2020, a pandemic year when earnings were $0.45 a share, to $2.72 in fiscal 2025. That dividend used about 44% of earnings and 53% of free cash flow (cash left after running and investing in the business). The yield was a modest 1.68% as of October 28, 2026. The company also spent about $545 million buying back shares from fiscal 2021 through 2025, and the share count fell 5.7% between October 2021 and July 2026.
The shares have fallen hard in downturns. They dropped 66% from December 2007 to November 2008, then took about 15 months to recover. In the 2020 COVID crash they fell 57% but recovered within about seven months. In 2022 they fell 26% and recovered in under three months. Single stocks carry more risk than diversified funds, because one company's setbacks are not cushioned by other holdings.
Questions investors ask
How does Texas Roadhouse make money?
Texas Roadhouse makes money by selling meals, and it owns and runs most of its restaurants itself. As of December 30, 2025, it operated 714 company restaurants: 648 Texas Roadhouse steakhouses, 56 Bubba's 33 sports-themed restaurants and ten Jaggers fast-casual spots. Franchisees ran another 102, including 60 Texas Roadhouse restaurants abroad or in Puerto Rico. Revenue was $5.88 billion in fiscal 2025, and net profit came to about 6.9 cents per dollar of sales.
Does Texas Roadhouse raise its dividend every year?
It has for five straight years, with dividends per share rising from $0.36 in fiscal 2020 to $2.72 in fiscal 2025. That is an average gain of about 49.8% a year, though it started from a low, pandemic-hit base. The fiscal 2025 dividend used about 44% of earnings, and the yield was 1.68% as of October 28, 2026. The 10-K cautions that there is no assurance the company will keep paying dividends.
Why did Texas Roadhouse's profit fall in fiscal 2025?
Profit fell even though sales grew, and the company cited beef inflation as a drag on restaurant margins. Revenue rose 9.4% to $5.88 billion in fiscal 2025, but net income dropped 6.5% to $405.6 million. In its 10-K, the company said commodity inflation, especially for beef, ran higher than normal and was expected to continue into 2026. In the quarter ended June 30, 2026, revenue grew 11.1% from a year earlier while net income slipped 1.7%.
Does Texas Roadhouse have a lot of debt?
Very little. As of June 30, 2026, Texas Roadhouse had $50 million of debt and about $202 million of cash and investments, leaving roughly $152 million of net cash (cash minus debt). The company does carry long-term restaurant leases it cannot cancel, which work like fixed obligations. Its credit facility, a borrowing arrangement with lenders, also limits how much more debt it can take on.
How has Texas Roadhouse stock performed over the long term?
Over long periods it has risen strongly, with deep drops along the way. Based on its share price, the stock gained about 17.8% a year over the 10 years to October 28, 2026, and 16.3% a year over five years, but only 3% over one year. It fell 6.56% in calendar 2025. Its worst decline from a peak was 76.6%, and it dropped 26.9% within the year to October 28, 2026. Past returns do not predict future results.