Texas Roadhouse (TXRH) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 12.8% year-over-year to $1.63 billion, with same-store sales up 7.1% and traffic growth of 4.5%.

• Net income increased 8.6% to $123.4 million, and diluted EPS rose 9.6% to $1.87, supported by higher restaurant margin dollars and share repurchases.

• All brands delivered positive comparable sales growth; average weekly sales reached $180,000 at Texas Roadhouse, $125,000 at Bubba's 33, and $71,000 at Jaggers.

• Opened four company-owned and two franchise restaurants in Q1 2026; 22 more under construction.

• Recognized for best restaurant experience in Datassential 500 Awards for the second consecutive year.

Financial highlights

• Restaurant margin dollars increased 10.5% to $264.4 million, though margin percentage declined 36 basis points to 16.3% due to commodity and labor inflation.

• Food and beverage costs rose to 35.3% of sales, mainly from 6.2% commodity inflation; labor costs decreased to 32.9% due to productivity gains.

• Cash flow from operations was $259.1 million, offset by $158 million in capex, dividends, and share repurchases.

• Capital expenditures totaled $80.2 million; $71.8 million spent on franchise acquisitions.

• Quarterly dividend increased to $0.75 per share.

Outlook and guidance

• 2026 guidance includes commodity inflation of 6–7%, wage and labor inflation of 3–4%, store week growth of 5–6%, and capital expenditures of ~$400 million.

• Q2 2026 expected to be the peak for commodity inflation at 7–8%; menu prices increased by 1.9% in early April.

• Expect approximately 35 company-owned openings and additional franchise and international locations in 2026.

• Effective tax rate projected at 14–15% for 2026.

• G&A and depreciation expenses forecasted to increase at low double-digit and low teen percentages, respectively.