Overview

• U.S. casual dining chain's Q1 revenue rose 13% but slightly missed analyst expectations

• Diluted EPS for Q1 rose 10% year-over-year

• Comparable restaurant sales increased 7.1%, driven by higher traffic and menu pricing

Outlook

• Company expects 2026 commodity inflation of 6% to 7%

• Texas Roadhouse sees 2026 store week growth of 5% to 6%, including franchise acquisitions

• Company expects 2026 wage and other labor inflation of 3% to 4%

Result Drivers

• HIGHER SALES AND TRAFFIC - Comparable restaurant sales rose 7.1% and store weeks increased 5.7%, driven by strong traffic trends and higher average weekly sales

• COST INFLATION PRESSURE - Restaurant margin as a percentage of sales fell 36 basis points due to commodity inflation of 6.2% and wage and other labor inflation of 3.8%, partially offset by higher sales

• NEW RESTAURANTS AND ACQUISITIONS - Four company restaurants and two franchise restaurants were opened, contributing to store week growth

Company press release: ID:nGNXhSYZh

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 18 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Texas Roadhouse Inc is $190.00, about 19% above its May 6 closing price of $159.69

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago

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