Texas Roadhouse (TXRH) investor relations material

Executive summary

• Achieved nearly $5.9 billion in revenue for 2025, with all three brands posting positive sales and traffic growth; full-year revenue up 9.4% to $5.88 billion.

• Marked 60 consecutive quarters of comparable restaurant sales growth, excluding 2020; comparable restaurant sales increased 4.2% in Q4 and 4.9% for the year.

• Opened the 800th system-wide restaurant and acquired 20 franchise locations; nine company and one franchise restaurant opened in Q4, with 28 company and four franchise restaurants opened in 2025.

• Completed rollout of Digital Kitchen and upgraded Guest Management Systems across all restaurants.

• Raised over $40 million for local schools and nonprofits through Dine to Donate fundraisers.

Financial highlights

• Same-store sales increased 4.9% for the full year, with 2.8% traffic growth; fourth quarter revenue grew 3.1% to $1.48 billion.

• Consolidated average unit volume exceeded $8.4 million; average weekly sales at company restaurants in Q4 were $160,021.

• Restaurant margin dollars in Q4 decreased 15.6% to $204.8 million; full-year margin dollars down 1.1% to $905.7 million.

• Diluted EPS decreased 26.1% in Q4 to $1.28 and 5.8% for the year; full-year net income down 6.5% to $405.6 million.

• Ended the year with over $130 million in cash and $730 million in operating cash flow.

Outlook and guidance

• Expecting approximately 35 company restaurant openings in 2026, plus six international and four domestic franchise units.

• Comparable restaurant sales for the first seven weeks of 2026 up 8.2% year-over-year.

• Commodity inflation guidance for 2026 is 7%, with beef inflation as the main driver; wage and labor inflation expected at 3%-4%.

• Capital expenditure guidance for 2026 is approximately $400 million.

• Full year 2026 income tax rate forecast updated to 14%-15%.