$TXRH · Texas Roadhouse, Inc.
Texas Roadhouse reported Q3 FY2026 (13 weeks ended September 29, 2026) results: total revenue $1.573B (+9.5% YoY), net income $89.4M (+7.4%), and diluted EPS $1.36 (+8.6%). Comparable restaurant sales rose 4.3% and restaurant margin expanded 30 bps to 14.6%. The board declared a quarterly dividend of $0.75 per share, payable December 29, 2026 to holders of record December 1, 2026.
- Q3 revenue $1.573B, up 9.5% YoY; diluted EPS $1.36, up 8.6% YoY.
- Comparable restaurant sales rose 4.3% in Q3; store weeks up 5.1%.
- Restaurant margin expanded 30 bps to 14.6% on commodity inflation of 2.0% and labor inflation of 4.1%.
- Quarterly dividend raised to $0.75 per share from $0.68 a year ago.
- Q4-to-date comparable sales up just 1.5% after a ~1.0% menu price increase.
Extended-hours last trade $184.30, down 3.91% vs the $191.79 regular close, as investors weighed the late-quarter traffic softening and weak Q4-to-date comps against the EPS beat.
A solid EPS beat is overshadowed by a late-quarter traffic slowdown and weak Q4-to-date comps, a potential early warning for casual-dining demand.
Casual-dining peers face the same consumer-spending and inflation pressures; TXRH's 4.3% comp growth still outpaces most of the segment despite the late-quarter slowdown.
CEO flagged softening traffic late in Q3 and Q4-to-date comps of just 1.5% after a ~1.0% price increase, implying negative underlying traffic. Commodity inflation of ~5.0% and wage/labor inflation of 3.5-4.0% continue to pressure margins.