Key Highlights

  • TXRH shares traded down 1.60% at $166.51, with the 50-day moving average moving below the 200-day average.
  • Second-quarter revenue rose 11.1% to $1.68 billion, and Texas Roadhouse comparable restaurant sales increased 6.5%.
  • Restaurant margin was 16.4% of sales, down 66 basis points, as commodity inflation reached 7.0% in the quarter.
  • Diluted earnings per share were $1.85 against $1.86 a year earlier, while first-half earnings rose 4.2%.
  • Management now expects 2026 commodity inflation of about 5% and reiterated capital expenditures of roughly $400 million.

Texas Roadhouse (NASDAQ:TXRH) shares are trading down 1.60% at $166.51, and the stock's 50-day simple moving average has moved below its 200-day, a pattern technical analysts call a death cross. The company has a market capitalization of $10.93 billion.

The signal is derived from past prices and does not reflect operating results. Texas Roadhouse operates the Texas Roadhouse steakhouse chain along with the Bubba's 33 and Jaggers brands, and it reported second-quarter results on August 6.

Comparable Sales Growth Keeps Traffic Trends Firm

Revenue for the quarter ended June 30 was $1.68 billion, up 11.1% from $1.51 billion a year earlier. Comparable restaurant sales at Texas Roadhouse rose 6.5%, against 5.9% in the prior-year quarter, while Bubba's 33 rose 1.3%, against 4.3%. Company-wide comparable sales rose 6.2%.

Average weekly sales were $177,252, up from $167,350, and to-go sales averaged $25,369 per week, up from $22,243. Management cited continued strong traffic trends, although the release did not quantify traffic or average check. Comparable sales for the first five weeks of the third quarter were up 6.2%.

Commodity Inflation Compresses the Restaurant Margin

Restaurant margin dollars rose 6.9% to $275.1 million, but margin as a share of restaurant and other sales fell 66 basis points to 16.4% from 17.1%. Commodity inflation was 7.0% in the quarter and 6.6% for the first half, while wage and other labor inflation was 3.9%.

Diluted earnings per share were $1.85, against $1.86 a year earlier. For the first six months, earnings per share were $3.72, up 4.2% from $3.57, and restaurant margin was 16.4%, down from 16.9%.

Outlook Trims Inflation Expectations and Keeps Capital Returns Going

The company updated its 2026 commodity inflation outlook to about 5% and reiterated wage and other labor inflation of 3% to 4%. It continues to expect positive comparable sales growth, including menu pricing, and store week growth of 5% to 6%, including franchise acquisitions.

Capital expenditures are planned at roughly $400 million. During the second quarter, the company opened nine company restaurants and one franchise restaurant, bringing first-half openings to 13 company and three franchise locations.

Cash and equivalents were $202.4 million at June 30. Long-term debt was $50.0 million, drawn on the revolving credit facility, compared with none at year-end.

The company repurchased $42.6 million of stock in the second quarter and $70.8 million in the first half. It declared a quarterly dividend of $0.75 per share, payable on September 29 to holders of record on September 1.

Signal Versus Results

The death cross reflects past price action, while the reported figures show double-digit revenue growth alongside a narrower restaurant margin. The next report will show how comparable sales hold after the 6.2% start to the third quarter and whether commodity inflation tracks the lower 2026 outlook. This review is limited to reported results and company guidance and does not assess valuation.