Texas Roadhouse (TXRH) investor relations material

Executive summary

• Q2 2026 revenue rose 11.1% year-over-year to $1.68 billion, with same-store sales up 6.2% and traffic growth of 3%.

• Net income for Q2 was $121.9 million, down 1.7% year-over-year; diluted EPS was $1.85, down 0.7%.

• Average weekly sales exceeded $175,000 for the first time; system-wide locations reached 755 in the U.S. and 10 foreign countries.

• Bubba's 33 and Jaggers brands continued to perform well, with strong new openings and sales momentum.

• The company opened nine company and one franchise restaurant in Q2; 13 company and three franchise restaurants opened in the first half.

Financial highlights

• Comparable restaurant sales increased 6.2% in Q2; restaurant margin dollars grew 6.9% to $275 million, but margin percentage declined to 16.4% due to 7% commodity inflation.

• Labor as a percentage of sales improved to 32.5%; other operating costs improved 28 basis points.

• Cash flow from operations was $180.1 million in Q2 and $439.2 million for the first half.

• Capital expenditures totaled $98.7 million in Q2 and $178.8 million for the first half; $71.8 million spent on franchise acquisitions.

• Dividends paid were $49.3 million in Q2 and $98.7 million for the first half; share repurchases totaled $42.6 million in Q2 and $70.8 million for the first half.

Outlook and guidance

• Management expects 2026 commodity inflation of ~5%, wage and labor inflation of 3–4%, and an effective tax rate of ~14%.

• Store week growth projected at 5–6%, including franchise acquisitions; total capital expenditures expected to be ~$400 million.

• Anticipated 75 basis point negative impact to Q4 same-store sales growth due to holiday shifts.

• Comparable restaurant sales for the first five weeks of Q3 2026 increased 6.2% year-over-year.