)
Overview
<ul>
<li>U.S. casual dining chain’s Q1 revenue rose 13% but slightly missed analyst expectations</li>
<li>Diluted EPS for Q1 rose 10% year-over-year</li>
<li>Comparable restaurant sales increased 7.1%, driven by higher traffic and menu pricing</li>
</ul>
Outlook
<ul>
<li>Company expects 2026 commodity inflation of 6% to 7%</li>
<li>Texas Roadhouse sees 2026 store week growth of 5% to 6%, including franchise acquisitions</li>
<li>Company expects 2026 wage and other labor inflation of 3% to 4%</li>
</ul>
Result Drivers
<ul>
<li>HIGHER SALES AND TRAFFIC - Comparable restaurant sales rose 7.1% and store weeks increased 5.7%, driven by strong traffic trends and higher average weekly sales</li>
<li>COST INFLATION PRESSURE - Restaurant margin as a percentage of sales fell 36 basis points due to commodity inflation of 6.2% and wage and other labor inflation of 3.8%, partially offset by higher sales</li>
<li>NEW RESTAURANTS AND ACQUISITIONS - Four company restaurants and two franchise restaurants were opened, contributing to store week growth Company press release:</li>
</ul>
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q1 Slight $1.63 $1.64
Revenue Miss* bln bln (25
Analysts
)
<h3>Q1 EPS $1.87</h3>
Q1 Net $123.43
Income mln
Q1Income $146.34
from mln
operatio
ns
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
<ul>
<li>The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 13 “strong buy” or “buy”, 18 “hold” and no “sell” or “strong sell”</li>
<li>The average consensus recommendation for the restaurants &amp; bars peer group is “buy”</li>
<li>Wall Street’s median 12-month price target for Texas Roadhouse Inc is $190.00, about 19% above its May 6 closing price of $159.69</li>
<li>The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 27 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)</li>
</ul>

TXRH

Texas Roadhouse Q1 revenue up 13%, as comparable restaurant sales rose