Texas Roadhouse (TXRH) FY 2025 earnings at a glance

Texas Roadhouse (TXRH) has wrapped up FY 2025 with fourth quarter revenue of US$1.5 billion and basic EPS of US$1.28, while full-year trailing twelve month revenue came in at US$5.9 billion and EPS at US$6.11. The company reported quarterly revenue moving from US$1.44 billion in Q4 2024 to US$1.48 billion in Q4 2025, alongside basic EPS shifting from US$1.74 to US$1.28. This sets the backdrop for how investors may assess the latest results in the context of trailing earnings and margin pressure. Overall, the figures indicate a business that is still producing solid revenue and EPS, with margins and profitability levels likely to be a central focus in this earnings season.

See our full analysis for Texas Roadhouse.

With the headline numbers on the table, the next step is to consider how this earnings profile aligns with the most widely discussed narratives around Texas Roadhouse, and where the figures may challenge elements of the current story.

6.9% net margin puts costs in focus

• On a trailing basis, Texas Roadhouse generated US$5.9b in revenue and US$405.6 million of net income, which works out to a 6.9% net profit margin compared with 8.1% a year earlier.
• Consensus narrative expects cost management and scale efficiencies to support margin strength over time. However, the current 6.9% margin and Q4 net income of US$84.6 million highlight that ongoing pressures from items such as commodity and wage inflation are still visible and create tension with the idea of sustained margin gains.

Unit growth to 816 restaurants supports sales story

• The restaurant base increased from 784 locations at the end of 2024 to 816 on a trailing basis, alongside trailing revenue of US$5.9b, which ties the top line closely to steady new openings.
• Supporters of the bullish view point to expansion of concepts such as Bubba's 33 and Jaggers and steady guest traffic. The rise in total restaurants from 772 in Q3 2024 to 816 on a trailing basis aligns with that growth angle, even as bears focus on issues such as declining alcohol mix and limited delivery that could limit how much revenue each new unit ultimately contributes.

🐂 Texas Roadhouse Bull Case

P/E of ~25.6x and DCF gap fuel debate

• At a share price of US$157.93 and a trailing EPS of about US$6.11, the stock trades on a P/E of roughly 25.6x, compared with a DCF fair value of US$213.16 and a single analyst price target of US$193.60 that both sit above the current price.
• Bears highlight that the P/E of around 25.6x stands above the US Hospitality industry average of 20.6x and point to the margin slip from 8.1% to 6.9%. This combination of a premium multiple with softer recent profitability gives some grounding to the cautious view, even though models in this dataset indicate the shares sit about 25.9% below DCF fair value and below the US$193.60 analyst target.

🐻 Texas Roadhouse Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Texas Roadhouse on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed signals or a clear opportunity, either way it pays to review the details yourself and weigh both sides quickly. Start with the 3 key rewards and 2 important warning signs.

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Texas Roadhouse pairs a 6.9% net margin and lower year on year profitability with a P/E above the US Hospitality average, which raises valuation questions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.