Texas Roadhouse

TXRH · Nasdaq · Consumer Discretionary · Financials, fiscal 2016 to 2025

TXRH · Last close · October 26, 2026

$165.82

Texas Roadhouse's revenue rose 9.4% to $5.9 billion in fiscal 2025. Its operating margin was 8.1%, down from 9.6% a year earlier. Free cash flow was $342 million, down 14.3%. It paid out $331 million in dividends and buybacks, 97% of free cash flow. The diluted share count fell 0.8%.

Texas Roadhouse, Inc. Latest fiscal year ended December 30, 2025 10-K filed February 27, 2026 · 0001104659-26-021292 Updated October 9, 2026

Revenue

$5.9B

9.4%

Operating margin

8.1%

1.5 pts

Net income

$414M

6.8%

Free cash flow

$342M

14.3%

Return on capital

33.0%

7.0 pts

Market cap

$10.9B

Oct 26 close

P/E

26.5x

On $6.25 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Texas Roadhouse had no borrowings at the end of 2019 and repaid the current part of its credit line in 2021, so debt lines missing in those years are counted as zero.

What Texas Roadhouse does

Texas Roadhouse runs restaurants. As of December 30, 2025, it owned and operated 714 and franchised another 102, in 49 states, one U.S. territory and ten other countries. It has three restaurant concepts. Texas Roadhouse is a moderately priced, full-service restaurant known for steaks cut by hand daily and cooked to order, plus ribs, seafood, chicken and other dishes. Bubba's 33 serves burgers, pizza and wings with beer and cocktails. Jaggers is a fast-casual burger and chicken concept with drive-thru service.

The company earns money mainly from sales at the restaurants it owns, and also from franchising. Most of the restaurants it owns are Texas Roadhouse (648), with 56 Bubba's 33 and ten Jaggers. It manages its business by concept and reports Texas Roadhouse and Bubba's 33 as its two reportable segments. It also has a separate operating segment for retail initiatives. About 21% of its company restaurants are in Texas and Florida, which ties its results to conditions in those states.

Its strategy is to open new restaurants, make food from scratch and keep service levels high. A manager is expected to check every entrée before it leaves the kitchen. The company was started in 1993 by W. Kent Taylor, who has died, and has its main office in Louisville, Kentucky.

Its biggest risks, as it describes them

Its growth depends on opening new restaurants that are profitable, which is partly outside its control.
Higher food and supply costs, or products becoming hard to get.
Damage to its brands that could cut guest traffic and sales.
Concentration of its restaurants in Texas and Florida, so local conditions there matter more.
Risks from expanding into other countries and from actions of its franchisees.

From Texas Roadhouse's annual report on Form 10-K, filed February 27, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 15.8% a year and net income 15.2% a year, as buybacks cut the share count by 6%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Texas Roadhouse yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Texas Roadhouse's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Texas Roadhouse's cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.9 times depreciation, which holds its free cash flow down) of $524M, net cash of $132M at December 30, 2025 and 66 million diluted shares, from its filings. The scenarios are fitted to Texas Roadhouse: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 13.6% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Restaurants); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 30, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Texas Roadhouse's own revenue growth, as above. Cautious: growth of 7% then 4.5% a year, 2% after year 10, a 10% discount rate. Base: growth of 13.5% then 8% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 20.5% then 12% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $165.82
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Texas Roadhouse's earnings per share of $6.25 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 18×, the middle of Texas Roadhouse's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Brinker International, Domino's, Yum! Brands, Cheesecake Factory.

Earnings growth in the years ahead (% a year) Starts at Texas Roadhouse's revenue growth over the last 3 years, 13.6% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $165.82
Value at this multiple, against the last close: —
Texas Roadhouse's P/E at the last close: 26.5×

Company	Last close	Earnings per share	P/E today
Cheesecake FactoryCAKE	$110.13	$3.69	29.8×
Texas RoadhouseTXRH	$165.82	$6.25	26.5×
Yum! BrandsYUM	$149.47	$7.95	18.8×
Brinker InternationalEAT	$187.98	$10.87	17.3×
Domino'sDPZ	$313.32	$18.15	17.3×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	336	174	104	245	135
Debt incl. finance leases	103	53	3	3	3
Net debt (negative means net cash)	−233	−121	−101	−242	−132
Net debt to EBITDA	−0.6x	−0.3x	−0.2x	−0.3x	−0.2x
Debt to equity	0.1x	0.1x	0.0x	0.0x	0.0x
Interest coverage	93.3x	207.0x	316.3x	579.7x	483.9x
Current ratio	0.9x	0.6x	0.5x	0.6x	0.5x
Quick ratio	0.9x	0.6x	0.4x	0.6x	0.5x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Texas Roadhouse shares on the open market, and 12 insiders sold $9.9 million, $5.0 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 26, 2026	Lloyd Paul MarshallChief Growth Officer	Sold	500	$204.65	$102,325	Form 4
Aug 25, 2026	Hugh J CarrollDirector	Sold	650	$203.99	$132,594	Form 4
Aug 21, 2026	Gerald L. MorganCEO, Executive Vice Chairman, Director	Sold plan	15,000	$202.17	$3.0 million	Form 4
Aug 17, 2026	Donna E EppsDirector	Sold	820	$206.56	$169,379	Form 4
Aug 17, 2026	Keith HumpichChief Acct & Fin Svcs Offcr	Sold	819	$204.11	$167,166	Form 4
Aug 11, 2026	Gregory N MooreDirector	Sold	3,000	$208.32	$624,960	Form 4
Jul 2, 2026	Sean G RenfroeGeneral Counsel	Sold plan	426	$192.53	$82,018	Form 4
May 26, 2026	Christopher C. ColsonChief Business & Admin Officer	Sold	499	$179.22	$89,431	Form 4
May 18, 2026	Jane Grote AbellDirector	Sold	339	$177.43	$60,149	Form 4
May 14, 2026	Lloyd Paul MarshallChief Growth Officer	Sold	1,000	$178.34	$178,340	Form 4
May 11, 2026	Curtis WarfieldDirector	Sold	2,640	$183.05	$483,252	Form 4
May 11, 2026	Gregory N MooreDirector	Sold	1,250	$178.14	$222,675	Form 4

The latest 12 of 21 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Fail	Fail
Current ratio rose	Fail	Pass	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Pass	Fail
F-score	7 of 8	7 of 8	4 of 8
Accruals ratio	−9.4%	−10.3%	−9.4%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Texas Roadhouse side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Texas Roadhouse	FY25	9.4%	8.1%	5.8%	33.0%	−0.2x	4
Brinker International	FY26	7.9%	10.7%	9.6%	66.0%	0.4x	8	Compare
Domino's	FY25	5.0%	19.3%	13.6%	92.2%	4.5x	8	Compare
Yum! Brands	FY25	8.8%	31.3%	19.9%	54.8%	4.1x	6	Compare
Cheesecake Factory	FY25	4.8%	5.0%	4.1%	20.5%	1.4x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	1,991	2,220	2,457	2,756	2,398	3,464	4,015	4,632	5,373	5,878
Revenue growth	10.1%	11.5%	10.7%	12.2%	−13.0%	44.4%	15.9%	15.4%	16.0%	9.4%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	172	186	188	212	24	297	320	354	516	475
Net income	116	132	158	174	31	245	270	314	444	414
Diluted EPS (US$)	1.63	1.84	2.20	2.46	0.45	3.50	3.97	4.54	6.47	6.10
Diluted shares (millions)	71	72	72	71	70	70	68	67	67	66
Cash flow
Cash from operations	257	286	353	374	230	469	512	565	754	730
Capital expenditure	165	162	156	214	154	201	246	347	354	388
Free cash flow	92	125	197	160	76	268	266	218	399	342
Dividends paid	52	58	68	102	25	84	124	147	163	180
Share buybacks	4	0	0	140	13	52	213	50	80	150
Acquisitions	0	16	2	2	11	0	33	39	0	108
Stock-based compensation	26	27	34	36	29	38	37	34	47	48
Balance sheet at fiscal year end
Cash and short-term investments	113	151	210	108	363	336	174	104	245	135
Debt incl. finance leases	52	52	2	2	242	103	53	3	3	3
Total assets	1,180	1,331	1,469	1,984	2,325	2,512	2,526	2,793	3,191	3,550
Total liabilities	422	479	509	1,052	1,382	1,438	1,498	1,636	1,817	2,068
Shareholders' equity	750	839	946	916	928	1,058	1,013	1,142	1,358	1,461
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	8.6%	8.4%	7.6%	7.7%	1.0%	8.6%	8.0%	7.6%	9.6%	8.1%
Net margin	5.8%	5.9%	6.4%	6.3%	1.3%	7.1%	6.7%	6.8%	8.3%	7.0%
Free cash flow margin	4.6%	5.6%	8.0%	5.8%	3.2%	7.7%	6.6%	4.7%	7.4%	5.8%
Return on capital	18.0%	19.0%	21.7%	22.8%	2.9%	30.9%	31.7%	31.6%	40.0%	33.0%
Return on equity	16.3%	16.6%	17.7%	18.7%	3.4%	24.7%	26.1%	29.1%	35.5%	29.4%
Return on assets	10.4%	10.5%	11.3%	10.1%	1.4%	10.1%	10.7%	11.8%	14.8%	12.3%
Net debt to EBITDA	−0.2x	−0.3x	−0.7x	−0.3x	−0.8x	−0.6x	−0.3x	−0.2x	−0.3x	−0.2x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Texas Roadhouse's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Texas Roadhouse.