Texas Roadhouse Earnings Reach $1.36 a Share as Customer Traffic Slows Late in Third Quarter

Key Facts

Texas Roadhouse reported diluted earnings per share of $1.36 in the third quarter of 2026, compared with $1.25 in the same period a year earlier. Net income attributable to the company rose to $89.361 million from $83.172 million, according to its filing with the U.S. Securities and Exchange Commission. But comparable sales growth was slower than a year earlier, rising 4.3% versus 6.1% in the third quarter of 2025. Operating weeks for stores increased 5.1% during the quarter. Chief Executive Jerry Morgan said the company entered the period with strong momentum, before customer traffic weakened late in the quarter.

Restaurant margin improved alongside sales growth, with margin dollars rising 11.9% to $228.6 million from $204.3 million in the year-earlier period. Margin as a percentage of restaurant sales increased 30 basis points to 14.6%. The company said commodity inflation was 2.0% during the period, while wage and other labor inflation was 4.1%. The figures show gains in margin dollars and as a percentage of sales despite the higher input costs reported by the company. It also said more than 30 restaurants across its brands were under construction.

In the first five weeks of the fourth quarter, comparable restaurant sales rose 1.5% from the same period in 2025. The company implemented a menu price increase of about 1.0% at the start of the quarter. These early indicators point to slower comparable-sales growth than the 4.3% recorded in the third quarter, though the data cover different periods. The filing provided no other figure for sales during the rest of the quarter. The five-week results remain the first publicly reported operating signal for the new period.

Management provided preliminary guidance for 2027, including positive comparable-sales growth and an increase in store weeks of between 5.0% and 6.0%. It also forecast commodity inflation of about 4.0% and capital expenditures of approximately $425 million. On shareholder returns, the board approved a quarterly cash dividend of $0.75 per share on November 4. The dividend is scheduled to be paid on December 29, 2026, to shareholders of record on December 1. TXRH shares closed at $196.45 in the November 4 session, according to EL7 data.