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Texas Roadhouse, Inc. (TXRH) Fundamental Analysis & AI Grade 2026

TXRH Nasdaq Retail-Eating Places DE CIK: 0001289460
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
72% Confidence
N/A
B
72% Conf
Pending
Analysis scheduled

📊 TXRH Key Takeaways

Revenue: $1.6B
Net Margin: 7.6%
Free Cash Flow: $178.9M
Current Ratio: 0.46x
Debt/Equity: 0.03x
EPS: $1.87
AI Grade: B with 72% confidence
Texas Roadhouse, Inc. (TXRH) receives a B fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.6B, net profit margin of 7.6%, and return on equity (ROE) of 8.1%, Texas Roadhouse, Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete TXRH stock analysis for 2026.

Is Texas Roadhouse, Inc. (TXRH) a Good Investment?

Claude

Texas Roadhouse demonstrates solid operational efficiency with 9.4% revenue growth and strong free cash flow generation ($178.9M, 11% FCF margin), supported by minimal debt burden (D/E 0.03x). However, net income declined 2.1% and EPS fell 5.7% YoY despite revenue growth, signaling margin compression, compounded by liquidity concerns evident in low current (0.46x) and quick (0.40x) ratios.

Texas Roadhouse, Inc. Key Strengths (TXRH)

Claude
  • + Strong revenue growth of 9.4% YoY demonstrates market demand and expansion capability
  • + Exceptional free cash flow generation of $178.9M with 11.0% FCF margin indicates efficient capital deployment
  • + Fortress-like balance sheet with minimal debt ($50M LT debt, D/E 0.03x) and exceptional interest coverage of 407.6x
  • + Solid operating margins of 9.0% and net margins of 7.6% appropriate for casual dining sector

TXRH Stock Risks: Texas Roadhouse, Inc. Investment Risks

Claude
  • ! Profitability decline (NI -2.1%, EPS -5.7% YoY) despite revenue growth signals margin compression from labor, commodity, or operational cost pressures
  • ! Weak liquidity position with current ratio of 0.46x and quick ratio of 0.40x indicates potential short-term cash flow challenges
  • ! Modest returns on equity (8.1%) and assets (3.5%) suggest limited shareholder value creation relative to asset base
  • ! Casual dining sector faces structural headwinds from labor cost inflation, competitive intensity, and shifting consumer preferences

Key Metrics to Watch

Claude
  • * Operating margin trends and unit-level profitability to assess cost control and pricing power
  • * Liquidity metrics (current ratio, cash conversion cycle) for sustainability of dividend and capital programs
  • * Same-store sales growth and traffic patterns to differentiate organic growth from price inflation

Texas Roadhouse, Inc. (TXRH) Financial Metrics & Key Ratios

Revenue
$1.6B
Net Income
$123.4M
EPS (Diluted)
$1.87
Free Cash Flow
$178.9M
Total Assets
$3.6B
Cash Position
$214.6M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

TXRH Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 9.0%
Net Margin 7.6%
ROE 8.1%
ROA 3.5%
FCF Margin 11.0%

TXRH vs Consumer Sector: How Texas Roadhouse, Inc. Compares

How Texas Roadhouse, Inc. compares to Consumer sector averages

Net Margin
TXRH 7.6%
vs
Sector Avg 8.0%
TXRH Sector
ROE
TXRH 8.1%
vs
Sector Avg 18.0%
TXRH Sector
Current Ratio
TXRH 0.5x
vs
Sector Avg 1.5x
TXRH Sector
Debt/Equity
TXRH 0.0x
vs
Sector Avg 0.8x
TXRH Sector

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. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
8.1%
Sector avg: 18%
Net Profit Margin
7.6%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.03x
Sector avg: 0.8x

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

Current Ratio
0.46x
Quick Ratio
0.40x
Debt/Equity
0.03x
Debt/Assets
57.0%
Interest Coverage
407.64x
Long-term Debt
$50.0M

TXRH Revenue & Earnings Growth: 5-Year Financial Trend

TXRH 5-year financial data: Year 2021: Revenue $3.5B, Net Income $174.5M, EPS $2.46. Year 2022: Revenue $4.0B, Net Income $31.3M, EPS $0.45. Year 2023: Revenue $4.6B, Net Income N/A, EPS $3.50. Year 2024: Revenue $5.4B, Net Income N/A, EPS $3.97. Year 2025: Revenue $5.9B, Net Income N/A, EPS $4.54.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
11.0%
Free cash flow / Revenue

TXRH Quarterly Earnings & Performance

Quarterly financial performance data for Texas Roadhouse, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.4B $116.1M $1.70
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

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Texas Roadhouse, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$259.1M
Cash generated from operations
Stock Buybacks
$28.2M
Shares repurchased (TTM)
Capital Expenditures
$80.2M
Investment in assets
Dividends Paid
$49.4M
Returned to shareholders

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
May 28, 2026 4 xslF345X06/form4-05282026_080501.xml View →
May 22, 2026 8-K txrh-20260521x8k.htm View →
May 19, 2026 4 xslF345X06/form4-05192026_080501.xml View →
May 15, 2026 4 xslF345X06/form4-05152026_080501.xml View →
May 13, 2026 4 xslF345X06/form4-05132026_080503.xml View →

Frequently Asked Questions about TXRH

What is the AI rating for TXRH?

Texas Roadhouse, Inc. (TXRH) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TXRH's key strengths?

Claude: Strong revenue growth of 9.4% YoY demonstrates market demand and expansion capability. Exceptional free cash flow generation of $178.9M with 11.0% FCF margin indicates efficient capital deployment.

What are the risks of investing in TXRH?

Claude: Profitability decline (NI -2.1%, EPS -5.7% YoY) despite revenue growth signals margin compression from labor, commodity, or operational cost pressures. Weak liquidity position with current ratio of 0.46x and quick ratio of 0.40x indicates potential short-term cash flow challenges.

What is TXRH's revenue and growth?

Texas Roadhouse, Inc. reported revenue of $1.6B.

Does TXRH pay dividends?

Texas Roadhouse, Inc. pays dividends, with $49.4M 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 $1.87.

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 grade reflects both perspectives for balanced insights.

What is TXRH's fundamental grade?

Based on our AI fundamental analysis in June 2026, Texas Roadhouse, Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TXRH stock overvalued or undervalued?

Valuation metrics for TXRH: ROE of 8.1% (sector avg: 18%), net margin of 7.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

What is TXRH's AI grade for 2026?

Our dual AI analysis gives Texas Roadhouse, Inc. a combined B grade 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 $259.1M, with capital expenditures of $80.2M. FCF margin is 11.0%.

How does TXRH compare to other Consumer stocks?

Vs Consumer sector averages: Net margin 7.6% (avg: 8%), ROE 8.1% (avg: 18%), current ratio 0.46 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI