Texas Roadhouse's $560M Volume Surges to 165th Rank Amid 6.58% Plunge After Earnings Miss

On August 8, 2025, Texas Roadhouse (TXRH) traded with a volume of $0.56 billion, marking a 107.85% surge from the previous day, ranking 165th in the market. The stock closed down 6.58%, reflecting significant investor sentiment shifts.

The decline follows Texas Roadhouse’s second-quarter earnings report, which revealed a profit shortfall despite a 12.7% year-over-year revenue increase to $1.51 billion. Earnings per share came in at $1.86, below the $1.91 Wall Street target. Adjusted EBITDA and gross profit margin also underperformed, with the latter dropping 1.1 percentage points to 17.6%. These results highlighted margin compression, signaling operational challenges amid revenue growth.

Analysts noted the stock’s subdued volatility, with only five moves exceeding 5% in the past year. The sharp drop suggests the market viewed the earnings as a meaningful negative catalyst. A prior 5.3% rally in May 2025, driven by macroeconomic optimism, contrasts with the current sell-off. The stock has fallen 3.8% year-to-date and trades 15.1% below its November 2024 52-week high.

Historical performance underscores the stock’s long-term potential: a $1,000 investment five years ago would now be worth $2,894. However, near-term concerns over inflationary pressures—particularly rising protein costs, which constitute over 50% of its commodity basket—remain a drag. The company reaffirmed its commitment to menu price adjustments to offset these costs.

A backtested strategy of purchasing the top 500 high-volume stocks and holding them for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights liquidity-driven momentum’s role in short-term gains, though volatility and rapid reversals pose inherent risks for such strategies.