Texas Roadhouse

TXRH Q3 2025 Earnings

Reported Nov 6, 2025 at 4:06 PM ET · SEC Source

Q3 25 EPS

$1.25

MISS 2.24%

Est. $1.28

Q3 25 Revenue

$1.44B

BEAT +0.49%

Est. $1.43B

vs S&P Since Q3 25

-8.9%

TRAILING MARKET

TXRH -1.5% vs S&P +7.4%

Market Reaction

Did TXRH Beat Earnings? Q3 2025 Results

Texas Roadhouse delivered a mixed third quarter for fiscal 2025, posting strong top-line growth that masked a notable earnings shortfall as commodity inflation eroded margins. Revenue climbed 12.8% year-over-year to $1.44 billion, edging past the $1.… Read more Texas Roadhouse delivered a mixed third quarter for fiscal 2025, posting strong top-line growth that masked a notable earnings shortfall as commodity inflation eroded margins. Revenue climbed 12.8% year-over-year to $1.44 billion, edging past the $1.43 billion consensus estimate by 0.49%, but diluted EPS of $1.25 fell short of the $1.28 analyst estimate by 2.24%, sliding slightly from $1.26 in the prior-year period. The culprit was clear: commodity inflation of 7.9% drove food and beverage costs to 35.8% of restaurant sales from 33.5%, compressing restaurant margin by 168 basis points to 14.3% despite comparable restaurant sales growth of 6.1% and continued unit expansion. CEO Jerry Morgan acknowledged uncertainty around the duration of inflationary pressures, and the forward-looking picture offers little immediate relief, with management guiding 2026 commodity inflation at approximately 7%. On a brighter note, early Q4 comparable sales rose 5.4%, supported by a 1.7% menu price increase, signaling the company is not standing still in its effort to recapture margin.

Key Takeaways

  • Comparable restaurant sales growth of 6.1% at company restaurants
  • Strong traffic driven by operators
  • Average weekly sales at company restaurants increased to $157,325 from $149,176
  • To-go sales increased to $21,409 per week from $18,914
  • Seven company and two franchise restaurant openings in Q3
  • Restaurant margin dollars increased 1.1% to $204.3 million
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TXRH YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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TXRH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Our operators continued to drive strong traffic this quarter, which helped offset the impact of continued commodity inflation. While the duration of these inflationary pressures remains uncertain, we are committed to running our business with a long-term focus and maintaining our value proposition.”

— Jerry Morgan, Q3 2025 Earnings Press Release