TXRH · Texas Roadhouse, Inc.

Texas Roadhouse delivered strong first quarter 2026 results, with revenue growing 12.8% to $1.63 billion and diluted EPS rising 9.6% to $1.87 — both exceeding the prior year’s already robust performance. The growth was fueled by a 7.1% increase in comparable restaurant sales and 5.7% growth in store weeks, reflecting solid traffic trends and disciplined new unit expansion. However, restaurant margin as a percentage declined 36 basis points to 16.3%, driven by persistent cost pressures: commodity inflation of 6.2% and wage/labor inflation of 3.8%. Management noted these were partially offset by higher sales and a 1.9% menu price increase implemented in early April. The company also advanced its development pipeline, opening four company and two franchise restaurants in Q1, with seven company units opened YTD and 22 more under construction. Capital allocation remained disciplined: $80.2 million in capex, $71.8 million in franchise acquisitions, $28.2 million in share repurchases, and $49.4 million in dividends. Guidance for full-year 2026 was updated only for commodity inflation (now 6–7%), while reaffirming positive comp sales, 5–6% store week growth, and ~$400 million in total capex. The $0.75 quarterly dividend — up from $0.68 in Q1 2025 — underscores continued confidence in free cash flow generation and commitment to shareholder returns. Forward-looking statements caution that macroeconomic conditions, supply chain constraints, and labor availability remain key risks to execution.