Texas Roadhouse, Inc.TXRH
NasdaqGS•Consumer Cyclical•Restaurants
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It operates through Texas Roadhouse, Bubba's 33, and Others segments. The company's restaurants offer seasoned and aged steaks, ribs, seafood, chicken, pork chops, pulled pork, and vegetable plates, as well as an assortment of hamburgers, salads, and sandwiches; and pizza, wings, and various appetizers and dinner entrées. The company also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers brands. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
Texas Roadhouse, Inc. (TXRH) reported trailing twelve months revenue of $6.06B as of March 2026, a 10.3% increase year-over-year. Quarterly revenue reached $1.63B, reflecting continued top-line momentum.
Texas Roadhouse, Inc. generated $424.27M in TTM net income, with quarterly EBITDA of $203.18M. The operating margin contracted from 9.3% to 9.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (9.0%) and net margin (7.7%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 8.0% a year ago, reflecting increased costs or interest expense.
TXRH trades at a P/E of 25.2x (in line with broad market averages) and a P/S of 1.8x. The price-to-book ratio of 7.1x indicates a significant premium over book value.
The company generated $178.91M in free cash flow over the trailing twelve months, a 11.6% increase year-over-year, indicating cash generation ability. The balance sheet shows $3.57B in total assets with $50.00M in long-term debt against $1.52B in stockholders equity for a debt-to-equity ratio of 0.0, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~8.7% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 30.4% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~22.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 15.1% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.