Texas Roadhouse Q2: 11% Revenue Growth Meets Beef-Driven Margin Squeeze
TXRH sits 37% above its 52-week low of $153.825.
Summary
Texas Roadhouse posted Q2 2026 revenue of $1.68B, an 11.1% increase, on comparable sales growth of 6.2%. Net income dipped to $121.9M as beef inflation pressured margins. The company repurchased $42.6M in stock and disclosed new insider trading plans.
Key Events · Earnings and Guidance · TXRH
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Q2 Revenue Up 11.1%
Total revenue reached $1.68B, driven by 6.2% comparable restaurant sales growth and a 5.0% increase in store weeks.
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Margins Squeezed by Beef Inflation
Restaurant margin fell to 16.4% from 17.1% a year ago, as commodity inflation of 7.0%—primarily higher beef costs—outpaced menu price increases.
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Net Income Slightly Lower
Net income attributable to Texas Roadhouse was $121.9M, or $1.85 per diluted share, compared to $124.1M, or $1.86 per share, in Q2 2025.
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Share Repurchases Continue
The company repurchased $42.6M of common stock in Q2, with $309.2M remaining under its $500M authorization.
Analysis · TXRH · Trade & Services
Solid top-line momentum carried Texas Roadhouse through the quarter, with comparable sales climbing 6.2%, but the story was tempered by commodity inflation that pushed restaurant margins down to 16.4% from 17.1% a year ago. Net income edged lower to $121.9M. The company continued returning cash to shareholders, repurchasing $42.6M in stock and paying a $0.75 quarterly dividend. In a routine disclosure worth noting given the stock's proximity to its 52-week high, CEO Gerald Morgan and another officer adopted 10b5-1 trading plans.
At the time of this filing, TXRH was trading at $210.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $13.7B. The 52-week trading range was $153.83 to $213.26. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.