Texas Roadhouse, Inc. Q2 FY26 Earnings Analysis

- First quarter 2026 revenue grew 12.8%, driven by a 6.8% increase in average weekly sales and 5.7% growth in store weeks. - Comparable sales increased 7.1% in Q1, supported by 4.5% traffic growth and a 2.6% increase in average check. - The company expects continued year-over-year growth in margin dollars per store week, assuming ongoing positive traffic trends. - Off-premise (To-Go) business is accelerating, contributing incrementally to margin dollars and supporting overall revenue growth. - New unit volumes, especially at Bubba’s 33, remain strong with strategies to sustain and grow customer base through operational excellence and local marketing. - Technology investments (digital kitchen, upgraded handheld tablets) aim to improve operational efficiency and customer experience, supporting higher volume capacity. - Continued cautious pricing increases expected, aiming to balance inflation pressures without sacrificing value perception. - Full year 2026 outlook includes strong sales momentum sustained into the second quarter and beyond.

- The company reported a 9.6% increase in diluted EPS to $1.87 in Q1 2026, indicating strong start to the year. - Full-year 2026 expectations remain positive with continued growth in sales, traffic, and margin dollars. - Labor productivity improvements and controlled commodity inflation (now guided down to 6-7%) support margin expansion. - Restaurant margin dollars and margin percent are expected to leverage further with positive traffic trends and pricing flow-through. - Full-year G&A and depreciation expenses are expected to increase in the low double-digit and low teen percentages, respectively. - Pricing increases have been planned through the year, with 3.6% in Q2 and Q3, and 1.9% (plus additional pricing if needed) in Q4. - Management remains confident in delivering steady earnings growth while investing in growth initiatives and returning capital to shareholders.

- Capital expenditures for the full year 2026 are expected to be approximately $400 million, unchanged from prior guidance. - In the first quarter of 2026, capital expenditures totaled $158 million. - Investments continue in digital kitchen technologies and upgraded handheld tablets to enhance restaurant operations and guest experience. - The company acquired 5 California franchise restaurants for $72 million, indicating strategic expansion. - Strong cash flow and healthy cash balances provide flexibility to invest in growth while returning capital to shareholders.

- There is no mention of any current or planned new fundraising through debt or equity in the provided transcript. - The company ended Q1 2026 with $215 million in cash and generated $259 million in cash flow from operations. - Capital expenditures for 2026 are expected to be approximately $400 million, unchanged from prior guidance. - The company also invested $72 million in acquiring 5 California franchise restaurants. - Strong cash balance and healthy cash flow provide flexibility to invest in growth and return capital to shareholders. - No indications or discussions about issuing new debt or equity were noted in the remarks or Q&A.

- The transcript does not explicitly mention current or expected orderbook or pending orders. - However, there is strong emphasis on to-go/digital orders: To-Go represented more than $25,000 or 14.6% of total weekly sales in Q1. - Digital kitchen technologies support higher volume of to-go orders without impacting dine-in. - Operators are dedicating resources to enhance to-go business and guest order accuracy. - Comparable sales growth driven by 4.5% traffic and 2.6% increase in average check. - Early Q2 comparable sales are strong at 6.5%, indicating sustained demand. - No specific backlog or orderbook figures disclosed in the call.