Texas Roadhouse

TXRH Q2 2025 Earnings

Reported Aug 7, 2025 at 4:06 PM ET · SEC Source

Q2 25 EPS

$1.86

MISS 2.49%

Est. $1.91

Q2 25 Revenue

$1.51B

BEAT +0.66%

Est. $1.50B

vs S&P Since Q2 25

-25.3%

TRAILING MARKET

TXRH -12.2% vs S&P +13.1%

Market Reaction

Did TXRH Beat Earnings? Q2 2025 Results

Texas Roadhouse delivered a mixed second quarter for the 13 weeks ended July 1, 2025, posting strong top-line growth that masked a modest earnings shortfall as beef inflation weighed on margins. Revenue climbed 12.7% year-over-year to $1.51 billion, … Read more Texas Roadhouse delivered a mixed second quarter for the 13 weeks ended July 1, 2025, posting strong top-line growth that masked a modest earnings shortfall as beef inflation weighed on margins. Revenue climbed 12.7% year-over-year to $1.51 billion, edging past the $1.50 billion consensus estimate by 0.66%, while comparable restaurant sales rose 5.8% across company locations with positive traffic across all three brands. Diluted EPS of $1.86, up 4.0% from the prior-year period, fell short of the $1.91 consensus by 2.49%, as food and beverage costs as a percentage of sales jumped to 34.0% from 32.7%, driven by commodity inflation of 5.2% with beef prices, which represent the majority of the commodity basket, commanding particular attention on the earnings call. Restaurant margin contracted 108 basis points to 17.1% despite a 6.1% rise in margin dollars. Management updated its full-year commodity inflation outlook to approximately 5%, incorporating estimated tariff impacts, while reiterating store week growth of roughly 5% and noting that comparable restaurant sales for the first five weeks of Q3 rose 5.3%.

Key Takeaways

  • Comparable restaurant sales increased 5.8% at company restaurants
  • Positive traffic across all three brands
  • Average weekly sales at company restaurants increased to $167,350 from $158,991
  • To-go sales grew to $22,243 per week from $19,975
  • Restaurant margin dollars increased 6.1% to $257.3 million
  • Share repurchases contributed to EPS growth
  • Texas Roadhouse comparable restaurant sales up 5.9%
  • Bubba's 33 comparable restaurant sales up 4.3%
24/7 Wall St

TXRH YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

TXRH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands. While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands.”

— Jerry Morgan, Q2 2025 Earnings Press Release