Texas Roadhouse, Inc.

Q2 FY26Hotels, Restaurants and Leisure

Texas Roadhouse, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹180

Market cap₹11.9K Cr

P/E29.1

Updated30 May 2026

Read4 min read

What the Q2 FY26 call signalled

1 of 3 strong

RevenueRank 3

MarginRank 3

CapexYes

Not discussed on this call: fundraise, order book.

The short version

- First quarter 2026 revenue grew 12.8%, driven by a 6.8% increase in average weekly sales and 5.7% growth in store weeks. - The company reported a 9.6% increase in diluted EPS to $1.87 in Q1 2026, indicating strong start to the year.

From Texas Roadhouse, Inc.'s Q2 FY26 earnings-call transcript · updated 30 May 2026.

Revenue & Sales Performance

Rank 3

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.

Profitability & Margins

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.

See what Texas Roadhouse, Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

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.

Fundraising & Capital Structure

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.

See what Texas Roadhouse, Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

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.

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Frequently Asked Questions

What were Texas Roadhouse, Inc. Q2 FY26 results?

What is Texas Roadhouse, Inc. share price analysis?

Texas Roadhouse, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 29.1 with a market cap of $11,854. Investors should review the full earnings analysis for detailed insights.

Is Texas Roadhouse, Inc. planning capital expenditure?

- Capital expenditures for the full year 2026 are expected to be approximately $400 million, unchanged from prior guidance.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.