📊 TXRH Key Takeaways
Is Texas Roadhouse, Inc. (TXRH) a Good Investment?
Texas Roadhouse exhibits strong financial fundamentals with zero long-term debt, exceptional returns on equity (27.8%), and robust free cash flow of $342M. However, the company faces concerning margin compression with net income declining 2.1% YoY while revenue grows 9.4%, suggesting operational headwinds from labor/food cost inflation that warrant close monitoring.
Why Buy Texas Roadhouse, Inc. Stock? TXRH Key Strengths
- Pristine balance sheet with zero long-term debt and debt-to-equity of 0.00x
- Strong cash generation with $730M operating cash flow and $342M free cash flow covering 5.8% FCF margin
- Exceptional returns metrics: ROE of 27.8% and ROA of 11.4% demonstrate capital efficiency
- Solid revenue growth of 9.4% YoY showing market demand and expansion capability
TXRH Stock Risks: Texas Roadhouse, Inc. Investment Risks
- Profitability declining: net income down 2.1% and diluted EPS down 5.7% YoY despite revenue growth signals margin compression
- Low liquidity ratios with current ratio of 0.50x and quick ratio of 0.45x indicate tight working capital management
- Operating leverage appears negative; 9.4% revenue growth not translating to earnings growth suggests cost inflation outpacing pricing power
Key Metrics to Watch
- Operating margin and net margin trend - critical to confirm stabilization or recovery from compression
- Diluted EPS trajectory - whether declining trend reverses with sustained revenue growth
- Free cash flow and capital allocation efficiency - ensuring capex spending of $388M delivers future returns
Texas Roadhouse, Inc. (TXRH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TXRH Profit Margin, ROE & Profitability Analysis
TXRH vs Consumer Sector: How Texas Roadhouse, Inc. Compares
How Texas Roadhouse, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Texas Roadhouse, Inc. Stock Overvalued? TXRH Valuation Analysis 2026
Based on fundamental analysis, Texas Roadhouse, Inc. appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Texas Roadhouse, Inc. Balance Sheet: TXRH Debt, Cash & Liquidity
TXRH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Texas Roadhouse, Inc.'s revenue has grown significantly by 70% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.54 reflects profitable operations.
TXRH Revenue Growth, EPS Growth & YoY Performance
TXRH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | $84.9M | $1.25 |
| Q2 2025 | $1.3B | $123.1M | $1.79 |
| Q1 2025 | $1.3B | $116.0M | $1.69 |
| Q3 2024 | $1.1B | $65.6M | $0.95 |
| Q2 2024 | $1.2B | $84.4M | $1.22 |
| Q1 2024 | $1.2B | $88.6M | $1.28 |
| Q3 2023 | $993.3M | $64.0M | $0.93 |
| Q2 2023 | $1.0B | $72.4M | $1.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Texas Roadhouse, Inc. Dividends, Buybacks & Capital Allocation
TXRH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Texas Roadhouse, Inc. (CIK: 0001289460)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 10, 2026 | DEF 14A | txrh-20260521xdef14a.htm | View → |
| Mar 20, 2026 | 4 | xslF345X06/form4-03202026_080301.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/form4-03182026_080305.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/form4-03182026_080303.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/form4-03132026_080301.xml | View → |
❓ Frequently Asked Questions about TXRH
What is the AI rating for TXRH?
Texas Roadhouse, Inc. (TXRH) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXRH's key strengths?
Claude: Pristine balance sheet with zero long-term debt and debt-to-equity of 0.00x. Strong cash generation with $730M operating cash flow and $342M free cash flow covering 5.8% FCF margin.
What are the risks of investing in TXRH?
Claude: Profitability declining: net income down 2.1% and diluted EPS down 5.7% YoY despite revenue growth signals margin compression. Low liquidity ratios with current ratio of 0.50x and quick ratio of 0.45x indicate tight working capital management.
What is TXRH's revenue and growth?
Texas Roadhouse, Inc. reported revenue of $5.9B.
Does TXRH pay dividends?
Texas Roadhouse, Inc. pays dividends, with $180.3M distributed to shareholders in the trailing twelve months.
Where can I find TXRH SEC filings?
Official SEC filings for Texas Roadhouse, Inc. (CIK: 0001289460) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TXRH's EPS?
Texas Roadhouse, Inc. has a diluted EPS of $6.10.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TXRH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Texas Roadhouse, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TXRH stock overvalued or undervalued?
Valuation metrics for TXRH: ROE of 27.8% (sector avg: 18%), net margin of 6.9% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy TXRH stock in 2026?
Our dual AI analysis gives Texas Roadhouse, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TXRH's free cash flow?
Texas Roadhouse, Inc.'s operating cash flow is $730.1M, with capital expenditures of $388.0M. FCF margin is 5.8%.
How does TXRH compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 6.9% (avg: 8%), ROE 27.8% (avg: 18%), current ratio 0.50 (avg: 1.5).
Why is TXRH's return on equity (ROE) so high?
Texas Roadhouse, Inc. has a return on equity of 27.8%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 6.9% net margin.