Texas Roadhouse (TXRH) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 9.5% YoY to $1.573B; comparable sales increased 4.3%, with 0.7% traffic growth, and diluted EPS rose 8.6% to $1.36.

• Restaurant margin dollars increased 11.9% to $228.6M, with the margin rate up 30 bps to 14.6%.

• A false social media hoax weighed on September sales; management reported improving sales and traffic trends through October and early November.

Financial highlights

• Q3 net income attributable to shareholders rose 7.4% to $89.4M; operating income increased 6.2% to $103.0M.

• Q3 average weekly sales were $163,980, including $23,628 in to-go sales, versus $157,325 and $21,409 a year earlier.

• 2026 YTD revenue was $4.886B, net income was $334.7M, and diluted EPS was $5.08; net cash from operations was $585.9M.

Outlook and guidance

• Q4 comparable sales rose 1.5% through the first five weeks; Halloween timing reduced comps by ~30 bps, and holiday calendar shifts are expected to reduce Q4 comp growth by ~75 bps.

• A ~1.0% menu price increase began at the start of Q4; 2026 store-week growth is forecast at 5.0%-5.5%, including franchise acquisitions.

• Commodity inflation is forecast at ~5.0% in 2026 and ~4.0% in 2027; wage and other labor inflation at 3.5%-4.0% and ~3.0%, respectively.

• 2027 store-week growth is expected at 5.0%-6.0%; effective tax rates are expected at ~13.0% in both 2026 and 2027.

• Capital expenditures are expected at ~$440M in 2026 and ~$425M in 2027; ~80% of remaining 2026 commodity costs were locked.