Texas Roadhouse (TXRH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $1.51 billion, up 12.7% year-over-year, driven by 5.8% same-store sales growth and strong traffic across all brands.

• Net income increased 3.3% to $124.1 million, with diluted EPS up 4.0% to $1.86, reflecting higher sales and share repurchases.

• Opened the 800th system-wide restaurant and completed several franchise acquisitions, with further expansion planned for Bubba's 33 and Jaggers.

• Announced a 1.7% menu price increase for Q4 to offset inflation while maintaining value.

• Four company restaurants and one franchise restaurant were opened in Q2; 12 company and one franchise restaurant opened in the first half.

Financial highlights

• Restaurant and other sales increased 12.8% year-over-year in Q2 2025; comparable restaurant sales up 5.8%.

• Restaurant margin dollars grew 6.1% to $257.3 million, though margin percentage declined 108 bps to 17.1% due to commodity and labor inflation.

• Food and beverage costs rose to 34% of sales, up 131 bps year-over-year, mainly from beef inflation.

• Labor as a percentage of sales increased slightly to 32.9%, with labor dollars per store week up 5.4%.

• Average weekly sales per company restaurant reached $167,350 in Q2, with $22,243 from to-go sales.

Outlook and guidance

• Full-year inflation guidance raised to ~5%, with beef inflation peaking at 7% in Q3 and moderating to 4-5% in Q4.

• Wage and labor inflation guidance lowered to ~4% for the year.

• Capital expenditure guidance maintained at ~$400 million for 2025.

• Effective tax rate for 2025 updated to ~15%.

• Store week growth of ~5% expected for 2025, including a 2% benefit from franchise acquisitions.