| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 42 | 26.5x | 17.3x | Around median | |
Growth | 68 | 9.9% | 7.1% | Top tier | |
Quality | 64 | 16.7% | 4.5% | Around median | |
Safety | 84 | 1.3x | 2.6x | Top tier | |
Capital Return | 84 | 1.72% | 0.06% | Top tier | |
Momentum | 52 | -9.8% | -1.6% | Around median | |
Sentiment | 62 | 20 | 3 | Around median |
The floor: what the company is worth if growth stopped today
54% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Texas Roadhouse operates restaurants under the Texas Roadhouse, Bubba's 33, and Jagers brands, combining company-owned restaurants with franchise partners. The main brand's business centers on hand-cut steaks, food prepared in the restaurants, and fresh bread, with dine-in and takeout service. At the end of Q2 of fiscal 2026 (ended 2026-06-30), the Texas Roadhouse network included approximately 755 restaurants in the United States and 10 foreign countries, compared with 59 Bubba's 33 restaurants and 11 company-owned Jaggers restaurants. These counts illustrate the main brand's weight in the business, while the two smaller brands provide an additional avenue for expansion.
According to EL7 data, revenue was approximately 1.7 billion dollars in Q2 of fiscal 2026, net income was 121.9 million dollars, and diluted earnings per share were 1.86 dollars. Gross margin was 22.0%, and operating margin as calculated by EL7 was approximately 8.5% for the same period; a reliable comparison of year-over-year revenue growth or year-over-year margin changes is unavailable because sources define the revenue line item differently. Net income in Q2 of fiscal 2025 was approximately 126.7 million dollars, while diluted earnings per share remained at 1.86 dollars, alongside a decline in diluted shares to 65.9 million from 66.6 million, a decrease of 1.0% compared with the same quarter of the previous fiscal year.
Comparable sales rose 6.2% in Q2 of fiscal 2026 compared with the same quarter of the previous fiscal year, supported by traffic growth of 3% and a 3.2% increase in average check, while takeout accounted for 14.3% of average weekly sales. According to EL7 data, operating cash flow was approximately 803.3 million dollars for the trailing 12 months through 2026-06-30, compared with net income of 419.5 million dollars for the same period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the trailing 12 months through 2026-06-30 was 221.3 million dollars, making restaurant expansion and maintenance costs an influential factor in the cash remaining after investment.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-05
Comparable sales growth in Q3 of fiscal 2026 at the 6.2% threshold compared with the same quarter of the previous fiscal year
Commodity inflation in Q3 of fiscal 2026 at the upper guidance limit of 3%
Company-owned restaurant openings in Q3 of fiscal 2026 at the planned 6 restaurants
The median analyst price target was 216 dollars, with a range of 175 dollars to 235 dollars, a low-confidence indicative estimate based on four analysts that reflects growth expectations; this method is inherently inclined toward optimism. The industry multiple valuation was 147 dollars, with a range of 99 dollars to 249 dollars, based on next year's earnings and a median multiple of 20.2 across 32 companies, measuring Texas Roadhouse's value when its earnings are priced like those of its peers. The discounted cash flow model valuation was 77 dollars, with a range of 58 dollars to 108 dollars, at a discount rate of 8.7%; it measures expected cash generation and is inherently inclined toward conservatism. The no-growth valuation was 59 dollars at the same discount rate, representing the result of holding current after-tax operating profit constant forever. The cash flow and no-growth methods are relatively close at the lower end, while analyst targets are above the industry multiple valuation; the divergence reflects differences in the weight assigned to expected growth, earnings comparisons with peers, cash generated, and the continuation of earnings without growth.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Comparable sales rose 6.2% in Q2 of fiscal 2026 (ended 2026-06-30), compared with the same quarter of the previous fiscal year. The increase was split between traffic growth of 3% and a 3.2% rise in average check, showing the contribution of actual demand alongside the average check. In the 2026-08-06 update, management announced that comparable sales growth continued at 6.2% during the first five weeks of Q3 of fiscal 2026 compared with the same period of the previous fiscal year.
Commodity inflation reached 7% in Q2 of fiscal 2026 (ended 2026-06-30), and beef prices and supply were a major focus of management's outlook. On 2026-08-06, management lowered its commodity inflation forecast for fiscal 2026 to approximately 5% from a range of 6% to 7%, benefiting from improving prices for sirloin cuts. However, it expected inflation of approximately 5% in Q4 of fiscal 2026 after a range of 2% to 3% in Q3 of fiscal 2026, with prices locked in for only approximately 40% of the commodity basket for the fourth quarter. The effect of the 1% menu price increase at the beginning of Q4 of fiscal 2026 therefore remains tied to the course of costs and continued traffic.
Automated analysis for informational purposes only — not investment advice.
Bubba's 33 had approximately 59 restaurants across 16 states at the end of Q2 of fiscal 2026 (ended 2026-06-30), while the number of company-owned Jaggers restaurants was 11. On 2026-08-06, management targeted at least 10 Bubba's 33 openings and 4 company-owned Jaggers openings during fiscal 2026. Management confirmed that Bubba's 33 faces stronger competition and needs to strengthen local marketing, while it sees room to combine direct ownership and franchising at Jaggers. Texas Roadhouse remains clearly the largest brand, with 755 restaurants in its network at the end of Q2 of fiscal 2026.
According to EL7 data, operating cash flow was approximately 803.3 million dollars for the trailing 12 months through 2026-06-30, compared with net income of 419.5 million dollars for the same period, a cash conversion ratio of 191%. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the trailing 12 months through 2026-06-30 was approximately 221.3 million dollars. This shows strong cash generation, with investment in restaurants absorbing a significant portion of operating cash flow. On 2026-08-06, management maintained fiscal 2026 capital expenditure guidance at approximately 400 million dollars, prioritizing new restaurant development and maintenance of existing restaurants.
Takeout accounted for 14.3% of average weekly sales in Q2 of fiscal 2026 (ended 2026-06-30). On 2026-08-06, management linked growth in this business to ease of ordering and pickup and meal completeness, along with its contribution to improved labor productivity. However, its rising share contributed to an overall negative sales mix effect of approximately 40 basis points in Q2 of fiscal 2026, despite a slightly positive dine-in mix. In the 2026-08-06 update, management described the direct delivery test at four restaurants as still limited and in the learning phase, so it does not yet represent an approved broad expansion.