Texas Roadhouse Reports 12.8% Revenue Growth to $1.63 Billion in Q1 2026

Texas Roadhouse, Inc. reported a significant increase in financial performance for the first quarter of 2026, with total revenue rising by 12.8% to $1.63 billion, compared to $1.45 billion in the same period last year. This growth was primarily driven by a 7.1% increase in comparable restaurant sales and a 5.7% increase in store weeks, attributed to both new store openings and the acquisition of franchise restaurants. The company's net income also saw an increase of 8.6%, reaching $123.4 million, up from $113.7 million in Q1 2025, while diluted earnings per share rose to $1.87 from $1.70.

Operationally, Texas Roadhouse expanded its footprint, operating 723 restaurants and franchising an additional 99 as of March 31, 2026, compared to 688 company-owned and 104 franchised restaurants a year earlier. The company opened four new Texas Roadhouse locations and acquired five domestic franchise restaurants during the quarter. The increase in guest traffic and a higher average check contributed to the growth in sales, with to-go sales also rising to 14.6% of total restaurant sales, up from 13.6% in the prior year.

The company faced challenges with rising costs, particularly in food and beverage, which increased to 35.3% of restaurant sales due to commodity inflation of 6.2%. Labor costs also saw a rise, although as a percentage of sales, they decreased to 32.9% from 33.3% in the previous year. Despite these pressures, the restaurant margin increased by 10.5% to $264.4 million, although the margin percentage slightly declined to 16.3% from 16.6% due to the aforementioned inflationary pressures.

In terms of strategic developments, Texas Roadhouse completed the acquisition of five domestic franchise restaurants for $71.7 million, aligning with its long-term strategy to enhance net income and earnings per share. The company also maintained a robust capital allocation strategy, with capital expenditures totaling $80.2 million, including investments in new restaurant openings and refurbishments. The company declared a quarterly cash dividend of $0.75 per share, up from $0.68 in the previous year, reflecting its commitment to returning value to shareholders.

Looking ahead, Texas Roadhouse anticipates continued growth, projecting a store week growth of 5% to 6% across all concepts for 2026. The company expects to manage inflationary pressures while maintaining its focus on expanding its restaurant base and enhancing operational efficiency. With a strong cash position and access to a revolving credit facility, Texas Roadhouse is well-positioned to support its growth initiatives and navigate the evolving market landscape.