Texas Roadhouse 2025 Q2 Earnings Net Income Rises 2.9%

Texas Roadhouse reported its fiscal 2025 Q2 earnings on August 8, 2025, delivering results that reflect ongoing operational resilience amid inflationary pressures. The company’s revenue and net income both grew year-over-year, though stock price performance has lagged recently. Management maintained guidance, reflecting confidence in sustained performance and long-term growth.

Texas Roadhouse reported fiscal 2025 Q2 earnings on August 8, 2025. The company’s total revenue increased by 12.7% year-over-year to $1.51 billion, with strong performance across its core operations. The company’s restaurant and other sales accounted for the lion’s share of its revenue, reaching $1.50 billion, while franchise royalties and fees added $8.08 million. Of the total royalty revenue, $7.47 million came from ongoing royalty payments, and franchise fees contributed an additional $612,000. This demonstrates the growing strength of the Texas Roadhouse brand and its franchise model.

Texas Roadhouse reported net income of $126.69 million in 2025 Q2, reflecting a 2.9% increase from $123.08 million in the same period the previous year. Earnings per share (EPS) also rose slightly to $1.87, up from $1.80 in 2024 Q2. These results highlight the company’s ability to maintain profitability despite ongoing cost pressures. The company has now posted positive earnings for over 20 years in the same quarter, underscoring its strong operational discipline and brand value.

The stock price of Texas Roadhouse has experienced a downward trend in recent periods. Over the latest trading day, shares declined by 0.63%, while weekly performance saw a 5.54% drop, and the month-to-date decline reached 7.36%. Despite the negative short-term price movement, historical data shows that a strategy of purchasing shares after a revenue raise on the earnings report date and holding for 30 days has delivered strong returns. Over the past three years, this strategy achieved an overall return of 116.57%, significantly outperforming the benchmark return of 47.91%. The excess return of 68.66% highlights the potential for investors to capitalize on positive earnings momentum. The strategy also demonstrated a compound annual growth rate (CAGR) of 29.78% and a maximum drawdown of 0.00%, reflecting robust risk-adjusted performance.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, highlighted strong comparable restaurant sales driven by positive traffic trends across all three brands. While acknowledging ongoing challenges from commodity and wage inflation, Morgan emphasized the company’s commitment to value preservation, operational excellence, and disciplined capital allocation. He also noted the recent milestone of opening the 800th system-wide restaurant and expressed optimism about future growth through new store development and strategic franchise acquisitions.

Texas Roadhouse updated its 2025 outlook, anticipating approximately 5% commodity cost inflation, including tariffs, and 4% wage and labor inflation. The company expects an effective tax rate of about 15%. Management reiterated its guidance for positive comparable sales growth, store week growth of approximately 5%, and total capital expenditures of around $400 million.

Among the top non-earnings related news stories in the three weeks following August 8, 2025, the Nigerian used car market saw a significant boom as owners increasingly sold off private vehicles due to economic hardship. Additionally, Man United finalized an €85 million deal for striker Šeško, signaling continued investment in their squad. In Nigerian politics, the Abia State chapter of the People’s Democratic Party mocked the resignation of a former deputy governor from the party, stating they would not miss his contributions.