Texas Roadhouse, Inc. reported a total revenue of $1.436 billion for the third quarter of 2025, marking a 12.8% increase from $1.273 billion in the same period last year. This growth was primarily driven by a 6.8% increase in store weeks and a 6.1% rise in comparable restaurant sales, attributed to higher guest traffic and an increase in the average check per person. However, net income for the quarter decreased by 1.5% to $83.2 million, down from $84.4 million in Q3 2024, as rising food and beverage costs, along with increased depreciation and amortization expenses, offset the revenue gains.
In terms of operational metrics, Texas Roadhouse's restaurant margin increased by $2.2 million to $204.3 million, although the margin percentage fell to 14.3% from 16.0% year-over-year. The decline in margin percentage was largely due to commodity inflation of 7.9% and labor inflation of 3.9%. The company also reported a diluted earnings per share of $1.25, a slight decrease from $1.26 in the prior year, reflecting the impact of share repurchases on earnings.
Strategically, Texas Roadhouse completed the acquisition of 17 domestic franchise restaurants for a total of $94.2 million during the first nine months of 2025. This move aligns with the company's long-term strategy to enhance net income and earnings per share. Additionally, the company acquired its previously leased office buildings in Louisville, Kentucky, for $22.8 million, further consolidating its operational footprint.
As of September 30, 2025, Texas Roadhouse operated 702 restaurants and franchised an additional 104 locations across 49 states and ten countries. The company’s workforce included a total of 66,228,169 shares outstanding, with a retained earnings balance of $1.460 billion. The company also reported a cash balance of $108.2 million, down from $245.2 million at the end of 2024, reflecting increased capital expenditures and share repurchases.
Looking ahead, Texas Roadhouse anticipates continued growth in store weeks and comparable sales, projecting a 5% increase in store week growth across all concepts for 2025. The company expects to maintain its focus on capital expenditures, estimating around $400 million for the year, which will support new restaurant openings and refurbishments. The effective tax rate is projected to be approximately 14.5% for 2025, with expectations of commodity inflation around 6% for the year.
About Texas Roadhouse, Inc.
Texas Roadhouse, Inc. is a restaurant company specializing in casual dining with a focus on high-quality, freshly prepared steaks, ribs, seafood, and American favorites. Operating primarily in the U.S. and internationally, it employs an owner-operator model emphasizing community engagement, value, and exceptional service. The company manages multiple concepts, franchises restaurants, and leverages proprietary recipes, local marketing, and digital systems to deliver a consistent guest experience.
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