Texas Roadhouse Inc. reported fourth‑quarter 2025 revenue of $1.48 billion, a 3.1% year‑over‑year increase, but the figure fell short of the consensus estimate of $1.50 billion by $20 million, or about 1.2%. Diluted earnings per share for the quarter were $1.28, missing the consensus estimate of $1.53 by $0.25, a 16.3% shortfall.
Full‑year 2025 revenue was $5.878 billion, up 3.1% from $5.678 billion in 2024. The company’s full‑year diluted EPS was $6.10, compared with $6.47 in 2024, reflecting the impact of higher commodity and labor costs on profitability.
Restaurant margin for Q4 2025 was 13.9%, down from 17.0% in Q4 2024, a compression driven primarily by a 9.5% rise in commodity inflation—especially beef costs—and a 2.9% increase in wage inflation. The company’s management said that these cost pressures offset the benefit of higher sales and menu pricing, leading to the margin decline.
Comparable restaurant sales grew 4.2% and traffic increased 1.9%, underscoring continued demand for the brand. The multi‑brand expansion, including Bubba’s 33 and Jaggers, helped diversify the revenue mix, while investments in operational technology are intended to mitigate rising labor costs.
CEO Jerry Morgan noted that the company had a strong finish thanks to operators driving traffic growth, but that commodity inflation continues to pressure margins. He added that the company remains committed to preserving its value proposition and focusing on operational excellence. Management also said the company had just completed its sixtieth consecutive quarter of comparable restaurant sales growth, a streak that dates back to 2010. Michael Bailen, the company’s investor‑relations vice president, explained that the extra week in the fourth quarter reduced revenue growth by about 9% and earnings growth by about 12%.
The company raised its quarterly dividend to $0.75 per share and said it expects commodity inflation of roughly 7% in 2026, with a planned 1.9% menu price increase in Q2. These guidance points suggest management’s confidence in maintaining profitability while navigating ongoing cost pressures.
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