Texas Roadhouse Reports 12.7% Revenue Growth to $1.51 Billion in Q2 2025

Texas Roadhouse, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenue reaching $1.51 billion, a 12.7% increase from $1.34 billion in the same period last year. This growth was primarily driven by a 7.2% increase in store weeks and a 5.8% rise in comparable restaurant sales, attributed to higher guest traffic and an increase in the average check amount. Net income for the quarter rose to $124.1 million, up 3.3% from $120.1 million in Q2 2024, while diluted earnings per share increased to $1.86 from $1.79.

In terms of operational metrics, Texas Roadhouse's restaurant margin dollars increased by 6.1% to $257.3 million, although the margin percentage decreased to 17.1% from 18.2% due to commodity inflation and labor costs. The company also reported a total of 797 restaurants as of July 1, 2025, including 695 company-owned and 102 franchised locations, reflecting a net increase of 13 restaurants since the previous year. The company has continued to expand its footprint, acquiring 17 domestic franchise restaurants during the first half of 2025 for a total of $93.9 million.

The filing also highlighted strategic developments, including the completion of three franchise acquisitions in Q2 2025, which were part of a broader strategy to enhance net income and earnings per share. The company has maintained a strong focus on capital allocation, with $92.5 million spent on capital expenditures during the quarter, alongside $15.5 million for franchise acquisitions and $45.1 million in dividends. The company’s stock repurchase program, which allows for up to $500 million in repurchases, has also been a key component of its financial strategy.

Texas Roadhouse's operational efficiency is reflected in its ability to manage costs effectively, despite rising food and labor expenses. The company reported food and beverage costs as a percentage of sales increased to 34.0%, driven by commodity inflation, particularly in beef prices. Labor costs also rose due to wage inflation, but the company has been able to offset some of these increases through higher sales and improved labor productivity. The effective tax rate for the quarter was 14.9%, slightly lower than the previous year's rate of 15.0%.

Looking ahead, Texas Roadhouse anticipates continued growth, projecting a store week growth of approximately 5% for the year, bolstered by the recent acquisitions and new openings. The company expects to maintain its focus on enhancing operational efficiency while navigating the challenges posed by inflationary pressures. With a strong cash position and access to a revolving credit facility, Texas Roadhouse is well-positioned to support its growth initiatives and shareholder returns in the coming quarters.