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; Texas Roadhouse averaged $180,000 weekly sales, Bubba's 33 $125,000, and Jaggers $71,000.

• Opened four company-owned and two franchise restaurants in Q1; 22 more under construction and international partners opened one location.

• 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 bps to 16.3% due to commodity and labor inflation.

• Food and beverage costs rose to 35.3% of sales, up 122 bps due to 6.2% commodity inflation, mainly higher beef costs.

• Labor as a percentage of sales improved 46 bps to 32.9%, with labor dollars per store week up 5.4% and wage inflation at 3.8%.

• Cash flow from operations was $259.1 million, offset by $158 million in capex, dividends, and share repurchases, plus $71.8 million for franchise acquisition.

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

Outlook and guidance

• 2026 guidance: commodity inflation 6–7% (Q2 peak at 7–8%), wage and labor inflation 3–4%, store week growth 5–6%, and capital expenditures ~$400 million.

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

• Full-year G&A expense expected to increase low double digits; depreciation expense to rise low teens percent.

• Menu prices increased by 1.9% in early April.

• Comparable restaurant sales for the first five weeks of Q2 2026 increased 6.5% year-over-year.