Texas Roadhouse Q2 Sales Surpass Expectations, Revenue Up 12.7% YoY

Texas Roadhouse reported Q2 revenue of $1.51 billion, up 12.7% YoY, beating Wall Street's expectations. GAAP profit was $1.86 per share, 2.8% below analyst estimates. The company's CEO attributed the strong comparable restaurant sales growth to positive traffic across all three of its brands. With a market capitalization of $12.23 billion, Texas Roadhouse is one of the larger restaurant chains in the industry, benefiting from a well-known brand and steady revenue growth.

Texas Roadhouse, Inc. (TXRH) reported its second-quarter (Q2) earnings on July 2, 2025, revealing a mixed performance with revenue growth and a slight miss on earnings per share (EPS). The company's Q2 revenue reached $1.51 billion, up 12.7% year-over-year (YoY), surpassing Wall Street's expectations of $1.5 billion [1]. However, the GAAP profit was $1.86 per share, 2.8% below analyst estimates of $1.91 [1].

Key highlights of the Q2 performance include:

- Revenue Growth: Revenue increased by 13% to $1.51 billion, slightly exceeding the estimate of $1.5 billion [1].
- Restaurant Sales: Restaurant and other sales rose by 13% to $1.50 billion, matching estimates [1].
- Franchise Royalties: Franchise royalties and fees climbed 6.9% to $8.08 million, surpassing the estimate of $7.73 million [1].
- Franchise Comparable Sales: Comparable restaurant sales growth was 7%, compared to 6.6% YoY [1].
- Restaurant Margin: The restaurant margin decreased to 17.1% from 18.2% YoY, missing the estimate of 17.6% [1].
- US Franchise Sales: US franchise restaurant comparable sales grew by 5.8%, compared to 8.3% YoY, beating the estimate of 4.45% [1].

CEO Jerry Morgan attributed the strong comparable restaurant sales growth to positive traffic across all three brands. The company opened four company restaurants and one franchise restaurant during Q2 and has plans to acquire eight domestic franchise restaurants as of the beginning of the Q4 2025 and Q1 2026 fiscal periods [2].

Looking ahead, Texas Roadhouse expects positive comparable restaurant sales growth for the full year, including the benefit of menu pricing actions. Total capital expenditures of approximately $400 million are anticipated. Shares of Texas Roadhouse fell 3.2% in postmarket trading [2].

With a market capitalization of $12.23 billion, Texas Roadhouse is one of the larger restaurant chains in the industry, benefiting from a well-known brand and steady revenue growth.

References:
[1] https://www.smartkarma.com/home/newswire/earnings-alerts/texas-roadhouse-txrh-earnings-2q-eps-falls-short-of-estimates-despite-strong-revenue-growth/
[2] https://seekingalpha.com/news/4481827-texas-roadhouse-trades-lower-after-commodity-inflation-impacts-results