Earnings Preview: Texas Roadhouse
Texas Roadhouse (NASDAQ:TXRH) is gearing up to announce its quarterly earnings on Thursday, 2025-11-06. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Texas Roadhouse will report an earnings per share (EPS) of $1.28.
Investors in Texas Roadhouse are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings History Snapshot
The company's EPS missed by $0.06 in the last quarter, leading to a 6.58% drop in the share price on the following day.
Here's a look at Texas Roadhouse's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.92 | 1.76 | 1.64 | 1.31 |
| EPS Actual | 1.86 | 1.70 | 1.73 | 1.26 |
| Price Change % | -7.00 | 5.00 | -1.00 | 4.00 |
Performance of Texas Roadhouse Shares
Shares of Texas Roadhouse were trading at $162.19 as of November 04. Over the last 52-week period, shares are down 16.9%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analysts' Take on Texas Roadhouse
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Texas Roadhouse.
A total of 8 analyst ratings have been received for Texas Roadhouse, with the consensus rating being Neutral. The average one-year price target stands at $192.38, suggesting a potential 18.61% upside.
Understanding Analyst Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Aramark, Dutch Bros and Cava Group, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Aramark, with an average 1-year price target of $45.0, suggesting a potential 72.25% downside.
- Analysts currently favor an Outperform trajectory for Dutch Bros, with an average 1-year price target of $80.07, suggesting a potential 50.63% downside.
- Analysts currently favor an Neutral trajectory for Cava Group, with an average 1-year price target of $80.32, suggesting a potential 50.48% downside.
Comprehensive Peer Analysis Summary
In the peer analysis summary, key metrics for Aramark, Dutch Bros and Cava Group are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Texas Roadhouse | Neutral | 12.74% | $265.42M | 8.77% |
| Aramark | Buy | 5.72% | $370.11M | 2.35% |
| Dutch Bros | Outperform | 27.97% | $120.04M | 4.15% |
| Cava Group | Neutral | 20.18% | $74.68M | 2.49% |
Key Takeaway:
Texas Roadhouse ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity compared to its peers.
Discovering Texas Roadhouse: A Closer Look
Texas Roadhouse Inc is a restaurant company operating predominantly in the casual dining segment. The company manages its restaurant and franchising operations by concept and, as a result, has identified Texas Roadhouse, Bubba's 33, Jaggers, and retail initiatives as separate operating segments. In addition, it has identified Texas Roadhouse and Bubba's 33 as reportable segments. Maximum revenue for the company is generated from the Texas Roadhouse segment, which is a moderately priced, full-service, casual dining restaurant concept offering steaks, a selection of ribs, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads, and sandwiches.
Key Indicators: Texas Roadhouse's Financial Health
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Texas Roadhouse's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 12.74%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.21%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.77%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.85%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.64, Texas Roadhouse adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Texas Roadhouse visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.