TXRH

Interested in The Marzetti Company? Here are five stocks we like better. Marzetti shares rose after fiscal Q4 results confirmed a head-and-shoulders chart reversal following a prolonged decline. Revenue slipped 2.2% to $465 million, but margin improvements drove adjusted earnings growth of 9% for the quarter. Strong institutional buying, a 3.45% dividend yield as a Dividend King, and steady buybacks support the stock's potential recovery. The Marzetti Company’s (NASDAQ: MZTI) stock screamed buy after the company's fiscal Q4 release, advancing to confirm a head and shoulders reversal. The stock was down in the quarters leading up to the release, but the Q4 report proved Marzetti’s true strength, which is cash flow production. While the company is temporarily impaired by a recent acquisition, the results showed better-than-expected profitability and improved capacity for capital return. The capital return is the primary factor, as The Marzetti Company is a Dividend King on track to keep raising its distribution annually for many years to come. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? The head and shoulders reversal pattern is one of the stronger signals a chart can give. It marks the end of a downtrend and the start of a new trend; the only question is whether the change is from down to upward or from down to sideways, as may be the case with Marzetti. The company proved its worth; now it needs to regain traction and reinvigorate market appetite. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding The Marzetti Company had a decent quarter despite its mixed results. The top line, which came in at $465 million, was down 2.2% from last year and slightly below consensus, but was affected by two factors. The first is a non-recurring contract in the prior year. The second is the low level of analyst coverage and revision activity—there just aren’t many analysts covering the stock, and activity over the past year has been tepid at best. Reasons for the light coverage include Marzetti's unexciting business model, as it focuses on selling branded sauces and frozen bread products to retail outlets, and a market cap of only $3.2 billion. Organically, business is improving. The company reported a 0.4% systemwide gain, underpinned by a 0.9% increase in the Retail channel, in turn supported by acquisition. The Food Service segment was the weak link, down 5.3% reported but only 0.1% on an adjusted basis, highlighting both the potential for lumpiness in the results and the strength of the diversified model. When consumers aren’t going out, they turn to the in-store version of their favorite restaurant brands, including Chick-fil-A, Olive Garden, and Texas Roadhouse (NASDAQ: TXRH). → DICK's Sporting Goods Faces Pain Now for a Bigger Prize Margin news was the bright spot in the release. The company’s cost-cutting efforts and operational improvements improved gross margin by more than 200 basis points. Higher SG&A and operating costs partially offset the gains, but much of that impact is linked to acquisition and integration and is expected to diminish over time. The takeaway is that adjusted earnings grew by 9% despite the top-line softness, and the stage is set for accelerated earnings growth to continue in upcoming quarters. Institutional activity is as robust as analyst coverage is tepid. The group signals high confidence in the stock’s long-term outlook, dividend payment, and value by owning more than 65% of the shares and buying aggressively in 2026. MarketBeat data reveals virtually no selling over the trailing 12 months, only buying, with buying spiking in tandem with major price drops. Institutional activity ahead of the Q4 release was especially telling, spiking to a multi-quarter high in alignment with the head and shoulders pattern. The likely outcome is that the group continues to drive market support, potentially leading the market into a full reversal by year’s end. The catalyst for a reversal will likely come in the next release and could include potential for margin improvement. The dividend is attractive. Not only is this company a Dividend King, having proven its ability to pay consistently over time regardless of business cycles, but it is yielding a historically high 3.45% as of late August and growing at a mid-single-digit compound annual growth rate (CAGR). Balance sheet highlights show no red flags aside from the slight debt increase from Bachan’s acquisition. Even so, the debt increase is minimal, leaving leverage at approximately 0.2x equity, with a strong cash position and improving equity. The added bonus is share buybacks. The company is not an aggressive acquirer of its own shares, but it reduces the count incrementally each quarter. This adds leverage and supports the stock price rebound outlook. It will take some time, but Marzetti’s cash flow and capital return say its stock price will recover over time—when consumer trends improve, the recovery will accelerate. The company's biggest risks are commodity cost fluctuations, which can impair margins, and food product recalls. Recalls, especially those tied to foodborne illness, can hurt brand sales and impair long-term revenue and margins. Competition and private labels also pose a risk, but to a lesser degree. The article "Marzetti Stock Confirms Reversal on Earnings Strength, Dividend Growth" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record full-year net sales and operating income, marking the fourth consecutive year of top-line growth despite a challenging operating environment. Retail segment performance was driven by the successful acquisition of Bachan's and continued momentum in specialty bakery, specifically Texas Roadhouse dinner rolls which grew 28.1% in the quarter. Gross margin expansion for the 12th consecutive quarter was attributed to a multi-year network restructuring, including the sale of the Milpitas facility and optimization of the Horse Cave and College Park plants. Foodservice stability was maintained through strategic partnerships with high-growth national QSR chains like Chick-fil-A, Domino's, and Taco Bell, offsetting declines in smaller accounts. Management identified the salad dressing category as a current soft spot, exacerbated by broader market trends and the recent Cyclospora outbreak affecting produce-adjacent products. Pricing actions implemented in the fiscal first quarter are designed to neutralize moderate commodity inflation, particularly in soybean oil, while maintaining competitive positioning. Projecting mid-single-digit revenue and bottom-line growth for FY27, heavily supported by the full-year contribution and innovation pipeline of the Bachan's brand. Anticipating a 250-basis-point net sales headwind in Q1 FY27 due to the Cyclospora outbreak, with recovery modeled after the 2018 outbreak's four-month 'half-life' trajectory. Forecasting 100 basis points of consolidated gross margin expansion, split equally between Bachan's accretion and ongoing productivity initiatives. Capital expenditure of $90 million is primarily allocated to scaling the College Park facility to support increased manufacturing capacity for Chick-fil-A products. Strategic focus remains on the 'three pillars': accelerating core growth, simplifying the supply chain to expand margins, and targeted M&A or licensing. Recorded an $18.5 million gain from the sale of the closed Milpitas, California manufacturing facility, which significantly impacted reported operating income and tax rates. The Bachan's acquisition added approximately $200 million in long-term debt with an effective interest rate of 4.8% as of June 30. Discontinuation of a temporary supply agreement (TSA) created a 260-basis-point unfavorable impact on reported revenue comparisons. Management flagged a 10-15% expected increase in SG&A for FY27, almost entirely driven by the integration and marketing support for the Bachan's brand. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management utilizes a combination of long-term hedges and recent pricing actions to protect against the 40% year-to-date increase in soybean oil costs. While 5% commodity inflation creates a 50-basis-point dilutive headwind, it is being fully offset by internal cost-savings programs and the higher-margin Bachan's mix. Sales are expected to exceed $100 million in FY27, driven by expanding household penetration from its current 6% and moving into the $3.4 billion mayonnaise category. New product launches, including a Japanese Mayo and a Wing Sauce developed with Marzetti's culinary team, are scheduled for retail resets in the second half of the fiscal year. Texas Roadhouse rolls reached $58 million in annual sales with only 2.5% household penetration, suggesting significant runway to reach the $100 million target. Management is exploring non-restaurant licensing opportunities to diversify the portfolio beyond existing restaurant brand partnerships. The outbreak caused a temporary 30% dip in lettuce sales and a corresponding 11-15% drop in dressing volumes during late July. Recovery is already visible in August data, and management expects the impact to dissipate over a four-month period based on historical media-driven outbreak cycles.

Interested in Texas Roadhouse, Inc.? Here are five stocks we like better. Strong sales momentum: Texas Roadhouse reported nearly $1.7 billion in Q2 2026 revenue, up 11.1% year over year, with same-store sales increasing 6.2% on 3% traffic growth and a 3.2% higher average check. Comparable sales also rose 6.2% during the first five weeks of Q3. Commodity inflation pressured margins: Restaurant margin declined to 16.4% as food and beverage costs rose to 35.4% of sales, driven primarily by 7% commodity inflation. The company lowered its full-year commodity-inflation outlook to about 5% and plans a 1% menu-price increase in Q4. Expansion remains a priority: Texas Roadhouse expects roughly 35 company-owned openings in 2026 and sees potential for approximately 900 U.S. Texas Roadhouse locations. It maintained its approximately $400 million capital-expenditure forecast, focused on new development and restaurant maintenance. 2026 Food Inflation Outlook: This ETF Could Outperform Texas Roadhouse (NASDAQ:TXRH) reported second-quarter 2026 revenue of nearly $1.7 billion as same-store sales rose 6.2%, supported by 3% traffic growth and a 3.2% increase in average check. The restaurant operator said average weekly sales exceeded $175,000 for the first time in its 33-year history. Revenue increased 11.1% from a year earlier, driven by a 5.9% rise in average weekly sales and a 5% increase in store weeks. Diluted earnings per share declined 0.7% to $1.85, while restaurant margin dollars increased 6.9% to $275 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth MarketBeat Week in Review – 02/16 - 02/20 Chief Executive Officer Jerry Morgan said the company’s company restaurants generated average weekly sales of more than $183,000 during the quarter. Across the system, average weekly sales were more than $177,000, including more than $25,000 in to-go sales, which represented 14.3% of weekly sales. Texas Roadhouse said comparable sales growth continued through the first five weeks of the third quarter, rising 6.2%, while average weekly restaurant sales reached $168,000. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High MCD and TXRH: 2 Low-Risk Restaurant Stocks With Upside Morgan attributed the traffic performance to restaurant execution, including service, food quality and operational investments designed to improve both dine-in and to-go experiences. He cited pay-at-the-table capabilities, upgrades to guest-management systems and digital kitchens as factors supporting sales growth. Chief Financial Officer Mike Lenihan said labor productivity also continued to improve. Labor hours grew at roughly 25% of the rate of comparable traffic growth in the second quarter. Lenihan said the trend reflects several factors, including technology investments, staffing practices, employee tenure and the growth of to-go sales. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management said it does not set labor-productivity targets for restaurant operators, though Lenihan said the company hopes the favorable trend continues. Texas Roadhouse also said demand was particularly strong during Mother’s Day and Father’s Day. Morgan said 90% of restaurants set a daily sales record on one of the company’s three major holiday occasions: Valentine’s Day, Mother’s Day or Father’s Day. A handful of locations generated more than $100,000 in single-day sales on one of those holidays, he said. Restaurant margin as a percentage of sales declined 66 basis points from a year earlier to 16.4%, despite a 1.9% increase in restaurant margin dollars per store week to more than $29,000. Food and beverage costs reached 35.4% of sales, up 136 basis points year over year, primarily due to 7% commodity inflation. The company said the pressure was partly offset by the 3.2% increase in average check. Texas Roadhouse lowered its full-year 2026 commodity-inflation outlook to approximately 5%, from a previous range of 6% to 7%. The revised outlook was primarily driven by lower sirloin prices. The company expects commodity inflation of 2% to 3% in the third quarter before an expected increase to about 5% in the fourth quarter. Michael Bailen, vice president of investor relations, said Texas Roadhouse had approximately 80% of its overall commodity basket locked for the third quarter and about 40% locked for the fourth quarter. Management said beef supply remains tight and demand remains strong, while the expected reopening of the Mexican border later in the year is unlikely to provide a meaningful near-term supply benefit. Labor costs improved as a percentage of sales by 40 basis points to 32.5%. Labor dollars per store week rose 4.7%, reflecting 3.9% wage and other labor inflation and 0.8% growth in labor hours. The company maintained its full-year wage and other labor inflation outlook of 3% to 4%. Other operating costs improved by 28 basis points to 14.2% of sales, aided by higher sales and a $1.1 million net benefit related to the company’s general liability insurance reserve. Texas Roadhouse plans to implement a 1% menu price increase at the beginning of the fourth quarter. Lenihan said the action would result in 2.9% pricing in both the fourth quarter and the first quarter of 2027. Morgan said the company will continue to take a conservative approach to menu pricing, weighing structural inflation against its goal of maintaining an everyday value proposition. He said pricing decisions are reviewed twice each year with input from restaurant operators and local markets. Second-quarter overall mix was negative by about 40 basis points, though dining-room mix turned slightly positive. Bailen said the growing mix of to-go sales offset the dining-room improvement. During the first five weeks of the third quarter, overall mix was flat as dining-room mix improved further and to-go mix also became more favorable. The company expects to open about 35 company-owned locations in 2026, with nine openings completed during the second quarter: five Texas Roadhouse restaurants, three Bubba’s 33 locations and one Jaggers location. Six company openings are planned for the third quarter, with the remaining openings weighted toward the fourth quarter. Texas Roadhouse ended the quarter with 755 system-wide locations across the United States and 10 foreign countries. The company expects to open about 20 Texas Roadhouse restaurants in 2026. Bubba’s 33 ended the quarter with 59 restaurants in 16 states and recently opened its 60th location, its first in Iowa. The company expects at least 10 Bubba’s 33 openings this year. Jaggers opened its 11th company location during the quarter and is expected to have four company openings for the full year. Management said its Texas Roadhouse development pipeline extends through 2029 and reiterated its view that the U.S. market can support approximately 900 Texas Roadhouse restaurants. The company has 20 locations open in California and six more in development, Morgan said. Texas Roadhouse ended the quarter with $202 million in cash. Cash flow from operations totaled $180 million during the quarter, offset by $191 million of capital expenditures, dividends and share repurchases. The company maintained its 2026 capital-expenditure forecast of approximately $400 million, with new development and maintenance of existing restaurants remaining its capital-allocation priorities. The company maintained forecasts for a low-double-digit percentage increase in full-year general and administrative expenses and a low-teen percentage increase in depreciation expense. It updated its full-year effective tax-rate outlook to approximately 14%, from a prior range of 14% to 15%. Texas Roadhouse also cautioned that calendar shifts involving Halloween and Christmas are expected to reduce fourth-quarter same-store sales growth by approximately 75 basis points. Texas Roadhouse, Inc is a casual dining restaurant chain specializing in hand‐cut steaks, fall‐off‐the‐bone ribs, chicken, seafood and house specialties. Each restaurant features a Western‐themed décor, open kitchens and a signature line dance presentation of fresh, made‐from‐scratch sides and breads. The company emphasizes an energetic dining experience, focusing on hospitality, value and a family‐friendly environment. The concept was created in 1993 by founder Kent Taylor, who sought to combine high‐quality steaks with an approachable, community‐oriented atmosphere. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Texas Roadhouse Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

For the quarter ended June 2026, Texas Roadhouse (TXRH) reported revenue of $1.68 billion, up 11.1% over the same period last year. EPS came in at $1.85, compared to $1.86 in the year-ago quarter. The reported revenue represents a surprise of +0.29% over the Zacks Consensus Estimate of $1.68 billion. With the consensus EPS estimate being $1.90, the EPS surprise was -2.63%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Texas Roadhouse performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable restaurant sales growth - Company restaurants: 6.2% versus 5.8% estimated by five analysts on average. Number of restaurants opened - Total: 10 versus 11 estimated by four analysts on average. Restaurants at the end - Franchise - Total: 100 compared to the 101 average estimate based on four analysts. Store weeks - Franchise restaurants: 1,205 versus 1,274 estimated by four analysts on average. Restaurants at the end - Total: 832 versus the four-analyst average estimate of 833. Store weeks - Company restaurants: 9,457 compared to the 9,458 average estimate based on four analysts. Franchise-owned restaurants-Comparable restaurant sales growth: 4.4% versus the four-analyst average estimate of 5.5%. Restaurants at the end - Company - Total: 732 versus the four-analyst average estimate of 732. Number of restaurants opened - Franchise: 1 versus the four-analyst average estimate of 5. Number of restaurants opened - Company: 9 versus the four-analyst average estimate of 6. Revenue- Franchise royalties and fees: $7.06 million compared to the $8.27 million average estimate based on five analysts. The reported number represents a change of -12.6% year over year. Revenue- Restaurant and other sales: $1.67 billion versus $1.67 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change. View all Key Company Metrics for Texas Roadhouse here>>> Shares of Texas Roadhouse have returned +14.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Approached $1.7 billion in Q2 2026, with revenue growth of 11.1%. Comparable Sales: Increased 6.2% in Q2, driven by 3% traffic growth and a 3.2% increase in average check. Average Weekly Sales: Exceeded $175,000 company-wide; Texas Roadhouse company restaurants averaged over $183,000; Bubba's 33 averaged over $129,000; Jaggers exceeded $76,000. Restaurant Margin: Restaurant margin dollars increased 6.9% to $275 million; margin as a percentage of total sales decreased 66 basis points to 16.4%. Diluted EPS: Decreased 0.7% to $1.85. Commodity Inflation: 7% in Q2; full-year 2026 guidance reduced from 6%-7% to approximately 5%. Labor Inflation: 3.9% in Q2, in line with expectations; full-year guidance maintained at 3%-4%. Food and Beverage Costs: 35.4% of total sales, a 136-basis point increase year-over-year. Labor Costs: 32.5% of total sales, a 40-basis point improvement year-over-year. Other Operating Costs: 14.2% of sales, 28 basis points better than Q2 2025. G&A Expenses: Increased 15.4% year-over-year, coming in at 4.3% of revenue. Depreciation Expense: Increased 15% year-over-year, coming in at 3.5% of revenue. Cash Flow: Cash flow from operations was $180 million in Q2; cash position at quarter end was $202 million. Capital Expenditures: Full-year 2026 guidance unchanged at approximately $400 million. Store Locations: Texas Roadhouse ended Q2 with 755 system-wide locations; Bubba's 33 had 59 restaurants (60th opened after quarter end); Jaggers opened its 11th company location. Development: On track for approximately 35 company-owned openings in 2026; nine occurred in Q2 (five Texas Roadhouses, three Bubba's 33, one Jaggers). Effective Tax Rate: 13.5% for Q2; full-year guidance updated to approximately 14%. To-Go Sales: Represented more than $25,000 per week, or 14.3% of total weekly sales. Warning! GuruFocus has detected 9 Warning Signs with CYRX. Is TXRH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Texas Roadhouse Inc (NASDAQ:TXRH) reported strong top-line momentum with same-store sales increasing 6.2%, including 3% traffic growth, and average weekly sales exceeding $175,000 for the first time in company history. The company is reducing its full-year 2026 commodity inflation guidance from 6%-7% to approximately 5%, driven by lower sirloin prices and a favorable outlook for the second half of the year. Labor productivity continues to improve, with labor hours growing at approximately 25% of comparable traffic growth, aided by technology investments like digital kitchens and a strong managing partner program. The development pipeline remains robust, with plans to open approximately 35 company-owned restaurants in 2026, including 20 Texas Roadhouse locations, and a full pipeline extending into 2029. The company's diversified brand portfolio is performing well, with Bubba's 33 and Jaggers both showing strong average weekly sales and growth potential, including a new Bubba's 33 location in Iowa. Texas Roadhouse Inc (NASDAQ:TXRH) continues to see strong demand on key holidays, with 90% of restaurants setting daily sales records on Mother's Day, Father's Day, or Valentine's Day, highlighting strong brand trust and guest loyalty. Restaurant margin as a percentage of total sales decreased 66 basis points to 16.4% in the second quarter, pressured by 7% commodity inflation, particularly in beef. The company expects a negative impact of approximately 75 basis points to fourth-quarter same-store sales growth due to holiday shifts, including Halloween and Christmas Day moving to different days of the week. Diluted earnings per share decreased 0.7% year-over-year to $1.85, despite revenue growth of 11.1%, reflecting margin pressure and higher costs. G&A expenses increased 15.4% in the second quarter, and the company continues to forecast a low double-digit percentage increase in total G&A dollar expense for the full year 2026. Overall menu mix was negative 40 basis points in the second quarter, driven by a lower average check in the to-go business, although dining room mix turned positive. The company is taking a conservative 1% menu price increase in the fourth quarter, which may not fully offset structural inflation, potentially impacting profitability in the near term. Q: How does Texas Roadhouse plan to approach menu price increases in a scenario where inflation moderates more meaningfully, especially after absorbing significant inflation over the last couple of years?A: Jerry Morgan (CEO) stated that the company maintains a conservative approach to pricing, evaluating it on a biannual basis through discussions with operators. He emphasized that keeping value on the menu is critical for taking care of staff, guests, and shareholders. The company will assess structural inflation and community-specific conditions before making decisions, believing this philosophy has paid off historically. Q: Can you provide a breakdown of the food and beverage margin bridge regarding commodity impact versus check impact versus entree mix, and what typically happens to entree mix and traffic as grocery beef prices retrace?A: Michael Bailen (VP of Investor Relations) explained that the company benefits from traffic and steak category sales when retail beef prices are high. While it's hard to predict if traffic trends will change if beef prices come down, he noted that Texas Roadhouse has historically maintained strong traffic through multiple cycles. High beef prices introduce new guests to the brand, and the company believes they will return even in a lower inflationary environment. Q: What drove the favorable commodity inflation in the second quarter versus your forecast, and how much visibility do you have on contracts for the back half of the year?A: Michael Bailen (VP of Investor Relations) attributed the improvement to sirloin prices moving lower in June, which was the biggest benefit to commodity expectations. The company now expects 2% to 3% inflation in Q3, stepping back up to approximately 5% in Q4. Regarding contracts, they are about 80% locked for Q3 and 40% locked for Q4, which is consistent with their position at this time last year. Q: Can you confirm if the 1% pricing increase puts you around 3% for Q4, and can you discuss mix trends in Q2 and expectations for Q3 and Q4?A: Mike Lenihan (CFO) confirmed that with the 1% increase in Q4, pricing will be 2.9%, and the same will carry into Q1 of next year. Michael Bailen added that Q2 mix was about 40 basis points negative overall, but dining room mix turned positive. In the first five weeks of Q3, mix trends have continued to improve with the vast majority of pricing flowing through, which is beneficial to profitability. Q: What is the company's long-term view on the number of Texas Roadhouse units the market can support, given rising volumes and density potential?A: Jerry Morgan (CEO) reiterated the company's previous guidance of approximately 900 restaurants, stating they are not changing that at this time. The company remains focused on opening about 20 restaurants per year with highly successful openings, and they are confident that America wants more Texas Roadhouse locations. Q: Can you provide more color on the continued traffic outperformance, specifically how much is driven by increased guest frequency versus new households coming to the brand?A: Jerry Morgan (CEO) noted that the company doesn't necessarily measure traffic that way. Instead, they focus on providing great guest experiences, which leads to word-of-mouth referrals. They have a first-time guest program to create relationships and exceed expectations. The company positions itself as locally owned and operated, with operators building strong community relationships, which has been key to their success. Q: Regarding the smaller brands, what are you seeing with Bubba's 33 new store performance, and with Jaggers, do you think about changing from a franchise model to a company-operated model?A: Jerry Morgan (CEO) said Bubba's 33 openings have done extremely well, with a focus on food, experience, and consistency. For Jaggers, the company has learned a lot from franchise partnerships and will continue to build both company-owned and franchise locations. Mike Lenihan (CFO) added that having both franchise partners and company ownership is beneficial at this stage of Jaggers' life cycle, as they learn from their strong franchise operators. Q: Can you share any learnings from the first-party delivery test conducted in a few stores?A: Jerry Morgan (CEO) described it as a micro test of four stores across different parts of the country. The test is still very early, and they view it as a fact-finding mission to understand operational complexities. He noted that they haven't gathered a lot of learnings to share yet, but the test is beneficial for educational purposes in case operators become curious about delivery. Q: Can you decompose Bubba's same-store sales performance by isolating newer units versus legacy units to understand where the brand is heading?A: Michael Bailen (VP of Investor Relations) explained that with only 60 restaurants, the company focuses more on the performance of newer restaurants, which embody recent learnings. They take a long-term approach rather than quarter-to-quarter. When comparing Bubba's at 60 restaurants to where Texas Roadhouse was at the same stage, some metrics are extremely encouraging, which is where they believe the focus should be. Q: Did the World Cup have any impact on same-store sales in Q2, and does the brand exposure inspire you to accelerate international franchise growth?A: Mike Lenihan (CFO) stated there was no significant measurable impact on sales across the system, though some individual restaurants saw benefits on game days. However, the World Cup provided positive social media exposure from first-time guests, which has been helpful in conversations with international franchise prospects and sales efforts. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Texas Roadhouse (TXRH) is back in focus after Wall Street analysts outlined expectations for upcoming quarterly results, highlighting consensus forecasts for earnings per share of $1.90 and revenue of $1.68 billion. See our latest analysis for Texas Roadhouse. At a share price of $208.50, Texas Roadhouse has seen a 12.09% 1 month share price return and a 21.67% year to date share price return. Its 5 year total shareholder return of 150.05% provides additional context for current earnings expectations by relating them to both recent momentum and established performance. If you are looking beyond restaurants for the next potential opportunity, this could be a good moment to scan 22 top founder-led companies Texas Roadhouse has delivered strong long term shareholder returns and sits close to recent highs after its latest move. The business looks solid, so how much of that strength already sits in today’s share price? Texas Roadhouse last closed at $208.50 while the most followed narrative estimates a fair value of $200.35, so the story centers on what justifies that gap. Read the complete narrative. Want to see what kind of revenue climb and margin shift Texas Roadhouse would need to support that valuation gap? The full narrative lays out a detailed set of growth, profitability and future earnings assumptions that connect current traffic trends, digital execution and unit expansion to a higher long term earnings base and a richer future earnings multiple. Result: Fair Value of $200.35 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Texas Roadhouse still faces meaningful risks from elevated beef costs and rising wage inflation, which could pressure margins and challenge the current overvaluation story. Find out about the key risks to this Texas Roadhouse narrative. While the popular narrative pegs Texas Roadhouse at about 4.1% above its fair value, the SWS DCF model points in a different direction. On this cash flow view, the stock at $208.50 sits about 3.6% below an estimated fair value of $216.27. Which story do you think is closer to how the market will price it over time? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Texas Roadhouse for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. The mixed signals around Texas Roadhouse make the story interesting, not settled, so take a moment to review the data and balance both sides. To see the specific trade off between the risks investors are worried about and the rewards they are excited about, go straight to the 2 key rewards and 2 important warning signs If you stop at Texas Roadhouse, you risk missing other stocks that could fit your goals just as well. Put the same focus on your wider watchlist. Spot potential value opportunities early by checking companies that show up in the 51 high quality undervalued stocks and could meet your quality and price discipline. Prioritise resilience by reviewing companies in the 79 resilient stocks with low risk scores that align with a more defensive approach when markets turn choppy. Hunt for future standouts by scanning the screener containing 17 high quality undiscovered gems and see which lesser known stocks might deserve a place on your radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TXRH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Texas Roadhouse (TXRH) came out with quarterly earnings of $1.85 per share, missing the Zacks Consensus Estimate of $1.9 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.63%. A quarter ago, it was expected that this restaurant chain would post earnings of $1.87 per share when it actually produced earnings of $1.87, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Texas Roadhouse, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.68 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Texas Roadhouse shares have added about 25.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Texas Roadhouse has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Texas Roadhouse was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.32 on $1.59 billion in revenues for the coming quarter and $6.45 on $6.55 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Wendy's (WEN), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This hamburger chain is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -44.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Wendy's' revenues are expected to be $564.56 million, up 0.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report The Wendy's Company (WEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Declares Quarterly Dividend of $0.75 per Share LOUISVILLE, Ky., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH) today announced financial results for the 13 and 26 weeks ended June 30, 2026. Financial Results Financial results for the 13 and 26 weeks ended June 30, 2026 and July 1, 2025 were as follows: Results at company restaurants for the 13 weeks ended June 30, 2026, as compared to the prior year as applicable, included the following: Comparable restaurant sales increased 6.2% and store weeks increased 5.0%; Average weekly sales were $177,252 of which $25,369 were to-go sales as compared to average weekly sales of $167,350 of which $22,243 were to-go sales in the prior year; Restaurant margin dollars increased 6.9% to $275.1 million from $257.3 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 66 basis points to 16.4% as commodity inflation of 7.0% and wage and other labor inflation of 3.9% were partially offset by higher sales; Diluted earnings per share decreased 0.7% primarily driven by higher general and administrative expenses and higher depreciation and amortization expenses partially offset by higher restaurant margin dollars and the impact of share repurchases; Nine company restaurants and one franchise restaurant were opened; and Cash provided by operating activities was $180.1 million and capital allocation spend included capital expenditures of $98.7 million, dividends of $49.3 million, and repurchases of common stock of $42.6 million. Results at company restaurants for the 26 weeks ended June 30, 2026, as compared to the prior year as applicable, included the following: Comparable restaurant sales increased 6.7% and store weeks increased 5.3%; Average weekly sales were $175,708 of which $25,371 were to-go sales as compared to average weekly sales of $165,228 of which $22,195 were to-go sales in the prior year; Restaurant margin dollars increased 8.6% to $539.5 million from $496.6 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 52 basis points to 16.4% as commodity inflation of 6.6% and wage and other labor inflation of 3.9% were partially offset by higher sales; Diluted earnings per share increased 4.2% primarily driven by higher restaurant margin dollars and the impact of share repurchases partially offset by higher depreciation and amortization expenses and higher general and administrative expenses; 13 company restaurants and three franchise restaurants were opened; and Cash provided by operating activities was $439.2 million and capital allocation spend included capital expenditures of $178.8 million, franchise acquisitions of $71.8 million, dividends of $98.7 million, and repurchases of common stock of $70.8 million. Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “We are excited about the momentum in our business this quarter as continued strong traffic trends drove record average weekly sales. These results are a testament to the hard work, passion, and ownership mentality of our operators and their commitment to our mission, values, and purpose of Serving Communities Across America and the World.” Morgan added, “Looking ahead, we continue to expect meaningful growth opportunities across all three of our brands. With a strong development pipeline, healthy balance sheet, and our disciplined capital allocation approach, we remain focused on expanding our footprint, investing in our people, and executing Legendary Food and Legendary Service that sets us apart. We believe this focus positions us well to continue creating long-term value for our shareholders.” 2026 Outlook Comparable restaurant sales at company restaurants for the first five weeks of the third quarter of our 2026 fiscal year increased 6.2% compared to 2025. Management updated the following expectations for 2026: Commodity inflation of approximately 5%; and An effective income tax rate of approximately 14%. Management reiterated the following expectations for 2026: Positive comparable restaurant sales growth, including the benefit of menu pricing actions; Store week growth of 5% to 6%, including the benefit from franchise acquisitions; Wage and other labor inflation of 3% to 4%; and Total capital expenditures of approximately $400 million. Cash Dividend Payment On August 5, 2026, the Company’s Board of Directors approved the payment of a quarterly cash dividend of $0.75 per share of common stock. This payment will be distributed on September 29, 2026, to shareholders of record at the close of business on September 1, 2026. Non-GAAP Measures The Company prepares the unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). Within the press release, the Company makes reference to restaurant margin (in dollars, as a percentage of restaurant and other sales, and per store week). Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin should not be considered in isolation, or as an alternative, to income from operations. This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non-restaurant-level costs that support operations, but do not have a direct impact on restaurant-level operational efficiency and performance, including pre-opening and general and administrative expenses. The Company excludes pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results. The Company excludes depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as they represent a non-cash charge for the investment in restaurants. The Company excludes impairment and closure expenses as it believes this provides a clearer perspective of ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in the industry. A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables. Conference Call Texas Roadhouse, Inc. is hosting a conference call today, August 6, 2026, at 5:00 p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company’s website at investor.texasroadhouse.com. Listeners may also access the call by dialing (833) 461-5787 and using conference ID 639749828. A replay of the webcast will be available on the Company’s Investor Relations website shortly after the conclusion of the call. About the Company Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 830 restaurants system-wide in 49 states, one U.S. territory, and ten foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com. Forward-looking Statements Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, conditions beyond management’s control such as weather, natural disasters, disease outbreaks, epidemics, or pandemics impacting customers or food supplies; labor or supply chain shortages or limited availability of staff or product needed to meet the Company’s business standards; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and the impact of tariffs; food safety and food-borne illness concerns; and other factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under “Part I—Item 1A. Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 30, 2025. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law. ___________________ ___________________