(TXRH) Texas Roadhouse - Overview
Sector: Consumer Cyclical | Industry: Restaurants | Exchange: NASDAQ (USA) | Market Cap: 11.672m USD | Total Return: -9.7% in 12m
Avg Turnover: 202M
EPS Trend: 88.6%
Qual. Beats: 1
Rev. Trend: 99.5%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
Confidence
Texas Roadhouse, Inc. (TXRH) is a casual dining operator managing a portfolio of brands including its flagship Texas Roadhouse, Bubbas 33, and Jaggers. Headquartered in Louisville, Kentucky, the company utilizes a business model focused on high-volume dinner service and a menu centered on hand-cut steaks, ribs, and made-from-scratch sides. The company maintains a mix of corporate-owned and franchised locations across the United States and select international markets.
The casual dining sector is characterized by labor-intensive operations and high sensitivity to commodity price fluctuations, particularly beef and poultry. Unlike many competitors that rely on lunch traffic, Texas Roadhouse traditionally generates a significant portion of its revenue through a dinner-only strategy during weekdays to optimize labor costs and kitchen efficiency. Investors can examine detailed valuation metrics for this business model on ValueRay.
- Comparable restaurant sales growth driven by consistent guest traffic and pricing
- Beef commodity inflation and labor costs pressure operating restaurant margins
- Strategic expansion of Bubba’s 33 and Jaggers brands diversifies revenue streams
- High consumer sensitivity to discretionary spending impacts casual dining frequency
- Digital ordering and Roadhouse Pay adoption improve operational efficiency and throughput
| Net Income: 415.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -2.25 > 1.0 |
| NWC/Revenue: -7.03% < 20% (prev -7.25%; Δ 0.22% < -1%) |
| CFO/TA 0.21 > 3% & CFO 751.4m > Net Income 415.3m |
| Net Debt (839.7m) to EBITDA (709.8m): 1.18 < 3 |
| Current Ratio: 0.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (66.1m) vs 12m ago -0.89% < -2% |
| Gross Margin: 14.01% > 18% (prev 0.17%; Δ 1.38k% > 0.5%) |
| Asset Turnover: 179.2% > 50% (prev 172.3%; Δ 6.90% > 0%) |
| Interest Coverage Ratio: 138.0 > 6 (EBITDA TTM 709.8m / Interest Expense TTM 3.59m) |
| A: -0.12 (Total Current Assets 362.4m - Total Current Liabilities 788.8m) / Total Assets 3.57b |
| B: 0.42 (Retained Earnings 1.52b / Total Assets 3.57b) |
| C: 0.15 (EBIT TTM 495.1m / Avg Total Assets 3.38b) |
| D: 0.74 (Book Value of Equity 1.52b / Total Liabilities 2.04b) |
| Altman-Z'' = 2.37 = BBB |
| DSRI: 0.96 (Receivables 53.8m/50.9m, Revenue 6.06b/5.50b) |
| GMI: 1.24 (GM 14.01% / 17.43%) |
| AQI: 1.16 (AQ_t 0.13 / AQ_t-1 0.11) |
| SGI: 1.10 (Revenue 6.06b / 5.50b) |
| TATA: -0.09 (NI 415.3m - CFO 751.4m) / TA 3.57b) |
| Beneish M = -2.76 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 178.05 with a total of 739,098 shares traded.
Over the past week, the price has changed by -0.22%,
over one month by +11.13%,
over three months by -1.29% and
over the past year by -9.71%.
Texas Roadhouse has received a consensus analysts rating of 3.68. Therefore, it is recommended to hold TXRH.
- StrongBuy: 9
- Buy: 1
- Hold: 18
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 196.7 | 10.5% |
P/E Forward = 27.4725
P/S = 1.9249
P/B = 7.6941
P/EG = 2.2906
Revenue TTM = 6.06b USD
EBIT TTM = 495.1m USD
EBITDA TTM = 709.8m USD
Long Term Debt = 50.0m USD (from longTermDebt, last quarter)
Short Term Debt = 31.8m USD (from shortTermDebt, last quarter)
Debt = 1.05b USD (from shortLongTermDebtTotal, last quarter) (leases 1.00b already included)
Net Debt = 839.7m USD (calculated: Debt 1.05b - CCE 214.6m)
Enterprise Value = 12.5b USD (11.7b + Debt 1.05b - CCE 214.6m)
Interest Coverage Ratio = 138.0 (Ebit TTM 495.1m / Interest Expense TTM 3.59m)
EV/FCF = 34.69x (Enterprise Value 12.5b / FCF TTM 360.6m)
FCF Yield = 2.88% (FCF TTM 360.6m / Enterprise Value 12.5b)
FCF Margin = 5.95% (FCF TTM 360.6m / Revenue TTM 6.06b)
Net Margin = 6.85% (Net Income TTM 415.3m / Revenue TTM 6.06b)
Gross Margin = 14.01% ((Revenue TTM 6.06b - Cost of Revenue TTM 5.21b) / Revenue TTM)
Gross Margin QoQ = 13.11% (prev 10.70%)
Tobins Q-Ratio = 3.50 (Enterprise Value 12.5b / Total Assets 3.57b)
Interest Expense / Debt = 0.34% (Interest Expense 3.59m / Debt 1.05b)
Taxrate = 14.31% (21.0m / 147.0m)
NOPAT = 424.3m (EBIT 495.1m * (1 - 14.31%))
Current Ratio = 0.46 (Total Current Assets 362.4m / Total Current Liabilities 788.8m)
Debt / Equity = 0.69 (Debt 1.05b / totalStockholderEquity, last quarter 1.52b)
Debt / EBITDA = 1.18 (Net Debt 839.7m / EBITDA 709.8m)
Debt / FCF = 2.33 (Net Debt 839.7m / FCF TTM 360.6m)
Total Stockholder Equity = 1.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.28% (Net Income 415.3m / Total Assets 3.57b)
RoE = 28.21% (Net Income TTM 415.3m / Total Stockholder Equity 1.47b)
RoCE = 32.53% (EBIT 495.1m / Capital Employed (Equity 1.47b + L.T.Debt 50.0m))
RoIC = 15.15% (NOPAT 424.3m / Invested Capital 2.80b)
WACC = 7.55% (E(11.7b)/V(12.7b) * Re(8.21%) + D(1.05b)/V(12.7b) * Rd(0.34%) * (1-Tc(0.14)))
Discount Rate = 8.21% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.31 | Cagr: -0.67%
[DCF] Terminal Value 74.21% ; FCFF base≈373.9m ; Y1≈348.9m ; Y5≈319.1m
[DCF] Fair Price = 63.97 (EV 5.04b - Net Debt 839.7m = Equity 4.20b / Shares 65.7m; r=8.35% [WACC [floored]]; 5y FCF grow -8.44% → 2.50% )
EPS Correlation: 88.61 | EPS CAGR: 17.78% | SUE: 1.17 | # QB: 1
Revenue Correlation: 99.54 | Revenue CAGR: 13.33% | SUE: -0.20 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.81 | Chg30d=+4.83% | Revisions=+73% | Analysts=27
EPS next Quarter (2026-09-30): EPS=1.31 | Chg30d=-0.16% | Revisions=-17% | Analysts=28
EPS current Year (2026-12-31): EPS=6.40 | Chg30d=+1.97% | Revisions=+50% | GrowthEPS=+5.0% | GrowthRev=+11.2%
EPS next Year (2027-12-31): EPS=7.63 | Chg30d=+0.27% | Revisions=+0% | GrowthEPS=+19.2% | GrowthRev=+9.3%
[Analyst] Revisions Ratio: +73%