Texas Roadhouse
TXRH on Nasdaq. Texas Roadhouse sells casual dining meals to customers in restaurants worldwide. Market value $10.4bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
We can't read total debt from the filing, so debt is left out.
Should I look at this?
Good business, but not cheap right now
Why it could be worth it
See cheaper Retail & consumer stocks on the list
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $3.78 of spare cash in the past 12 months. A savings account pays about $4.
You pay 21.9 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 28 cents a year. Above 10 is good.
Quality score: 80 of 100. Price score: 57 of 100. Our list needs 70 on quality and 60 on price.
$163.57 a share, 6% above its 1-year low
Over the past year the price has ranged from $153.83 to $216.30.
Dividend: 1.7% a year
Paid every year for at least 5 years
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
| Revenue | |||||
| Revenue | $3.5bn | $4.0bn | $4.6bn | $5.4bn | $5.9bn |
| Operating margin | |||||
| Operating margin | 8.6% | 8.0% | 7.6% | 9.6% | 8.1% |
| Debt to equity | |||||
| Debt to equity | 0.10 | 0.05 | 0.00 | n/a | n/a |
| Shares outstanding | |||||
| Shares outstanding | 0.07bn | 0.07bn | 0.07bn | 0.07bn | 0.07bn |
Health checks
- Free cash flow positive5 of 5 years
- Accounting looks honest (Beneish)Not enough data
- Financial strength (Piotroski)5 of 7 checks we could run
- Profit backed by cash (accruals)Yes
- DebtUnknown
- Revenue growth, five yearsStrong, 19.6% a year
- Buying back its own sharesRoughly flat
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $1.7 billion last quarter, up 11% on a year ago.
- Profit: $122 million, down 2% on a year ago.
- It keeps 8 cents of each $1 of sales as operating profit, down from 9 cents a year earlier.
- Spare cash over the past 12 months: $406 million, up from $373 million.
- 1% fewer shares than a year ago. Each share owns a bit more of the company.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $1.3bn |
| December 2024 | $1.4bn |
| March 2025 | $1.4bn |
| June 2025 | $1.5bn |
| September 2025 | $1.4bn |
| December 2025 | $1.5bn |
| March 2026 | $1.6bn |
| June 2026 | $1.7bn |
| Quarter to | Amount |
|---|---|
| September 2024 | $84m |
| December 2024 | $116m |
| March 2025 | $114m |
| June 2025 | $124m |
| September 2025 | $83m |
| December 2025 | $85m |
| March 2026 | $123m |
| June 2026 | $122m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 27 February 2026
- Next quarterly (estimated, 10-Q)
- 6 November 2026
Who owns it
3 long-term investors we follow own it, up from 2 last quarter. 646 funds in all.
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Royce & AssociatesChuck Royce | $2m | <0.1% | Cut |
| Gotham Asset ManagementJoel Greenblatt | $1m | <0.1% | New |
| First Eagle Investment ManagementMatthew McLennan | $979,290 | <0.1% | Added |
Largest holders overall
- BlackRock$1.3bnCut
- Capital World Investors$838m
- AQR Capital Management$785mAdded
- Vanguard Portfolio Management$592m
- Vanguard Capital Management$573m
- Alliancebernstein L.P.$534mAdded
- State Street$402m
- Victory Capital Management$352mAdded
- FMR$318m
- Wellington Management Group LLP$298mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
4 investors own more than 5%.
- BlackRock, Inc.Passive investor9.3%Since 31 March 2025
- Capital World InvestorsPassive investor6.7%Since 31 March 2026
- AQR Capital Management, LLCPassive investorat least 5.5%(filed with 1 related holder)Since 31 March 2026
- Vanguard Capital ManagementPassive investor5.3%Since 31 March 2026
- AllianceBernstein L.P.Passive investorSold down below 5%Since 31 December 2025
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
BlackRock, Inc. Passive investor | 9.3% | 31 March 2025 | |
Capital World Investors Passive investor | 6.7% | 31 March 2026 | |
AQR Capital Management, LLC Passive investor | at least 5.5% (filed with 1 related holder) | 31 March 2026 | |
Vanguard Capital Management Passive investor | 5.3% | 31 March 2026 | |
AllianceBernstein L.P. Passive investor | Sold down below 5% | 31 December 2025 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 12 sold $10m, $5m of it under preset trading plans.
- Marshall Lloyd PaulCHIEF GROWTH OFFICERSold
- Date
- 26 August 2026
- Shares
- 500
- Price
- $204.65
- Value
- $102,325
- Carroll Hugh JDirectorSold
- Date
- 25 August 2026
- Shares
- 650
- Price
- $203.99
- Value
- $132,594
- Morgan Gerald L.CEO, EXECUTIVE VICE CHAIRMAN, DirectorSoldunder a preset trading plan
- Date
- 21 August 2026
- Shares
- 15,000
- Price
- $202.17
- Value
- $3m
- Humpich KeithCHIEF ACCT & FIN SVCS OFFCRSold
- Date
- 17 August 2026
- Shares
- 819
- Price
- $204.11
- Value
- $167,166
- EPPS DONNA EDirectorSold
- Date
- 17 August 2026
- Shares
- 820
- Price
- $206.56
- Value
- $169,379
- MOORE GREGORY NDirectorSold
- Date
- 11 August 2026
- Shares
- 3,000
- Price
- $208.32
- Value
- $624,960
- Renfroe Sean GGENERAL COUNSELSoldunder a preset trading plan
- Date
- 2 July 2026
- Shares
- 426
- Price
- $192.53
- Value
- $82,018
- Colson Christopher C.CHIEF BUSINESS & ADMIN OFFICERSold
- Date
- 26 May 2026
- Shares
- 499
- Price
- $179.22
- Value
- $89,431
- Abell Jane GroteDirectorSold
- Date
- 18 May 2026
- Shares
- 339
- Price
- $177.43
- Value
- $60,149
- Marshall Lloyd PaulCHIEF GROWTH OFFICERSold
- Date
- 14 May 2026
- Shares
- 1,000
- Price
- $178.34
- Value
- $178,340
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 26 August 2026 | Marshall Lloyd Paul CHIEF GROWTH OFFICER | Sold | 500 | $204.65 | $102,325 |
| 25 August 2026 | Carroll Hugh J Director | Sold | 650 | $203.99 | $132,594 |
| 21 August 2026 | Morgan Gerald L. CEO, EXECUTIVE VICE CHAIRMAN, Director | Sold under a preset trading plan | 15,000 | $202.17 | $3m |
| 17 August 2026 | Humpich Keith CHIEF ACCT & FIN SVCS OFFCR | Sold | 819 | $204.11 | $167,166 |
| 17 August 2026 | EPPS DONNA E Director | Sold | 820 | $206.56 | $169,379 |
| 11 August 2026 | MOORE GREGORY N Director | Sold | 3,000 | $208.32 | $624,960 |
| 2 July 2026 | Renfroe Sean G GENERAL COUNSEL | Sold under a preset trading plan | 426 | $192.53 | $82,018 |
| 26 May 2026 | Colson Christopher C. CHIEF BUSINESS & ADMIN OFFICER | Sold | 499 | $179.22 | $89,431 |
| 18 May 2026 | Abell Jane Grote Director | Sold | 339 | $177.43 | $60,149 |
| 14 May 2026 | Marshall Lloyd Paul CHIEF GROWTH OFFICER | Sold | 1,000 | $178.34 | $178,340 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
What could go wrong
Cheap for a reason is the question the numbers cannot answer.
Whether the price already reflects the risks is what the deep dive is for.
What changed in the risks this year
Companies must list what could hurt them each year. These are the parts that changed since last year’s report.
If we fail to protect the reputation of our brands, our guest traffic, sales, and overall financial performance could be materially adversely affected.
Could happenReputational harm could arise from a wide range of factors, including concerns about food quality or safety; food-borne illness claims; tampering or contamination incidents; poor health inspection results; supply chain or processing issues involving us or our vendors; facility conditions; guest complaints; alcohol related incidents; litigation; security breaches or technology failures; employee and/or labor relations concerns, including, but not limited to, allegations of harassment, discrimination, retaliation, or other misconduct; alleged violations of laws, regulations, or industry standards; and politically motivated accusations or other negative publicity. The actions of third parties, including our suppliers, franchisees, and our licensees in retail initiatives, also presents reputational risk outside of our direct control. Moreover, the rapid and broad dissemination of information through social media and other digital channels can amplify adverse events, sometimes without regard to accuracy or context, making it more difficult to mitigate or remediate negative impressions quickly or effectively.
Read moreOur failure or inability to enforce our trademarks or other proprietary rights could adversely affect our competitive position or the value of our brand.
Could happenOur brand value also depends on protection of trade secrets (including recipes, supplier relationships, and operational know-how), copyrights (including app, website, and marketing content), domain names, software, and, where applicable, rights of publicity. Protecting these assets can be difficult, particularly in jurisdictions with limited enforcement. Use of open-source software, third-party content, and artificial intelligence ("AI") in our technology and marketing may impose license obligations or usage restrictions and may increase the risk of third-party IP claims or content moderation obligations. Our inability to register or protect our marks and other proprietary rights in foreign jurisdictions could adversely affect our competitive position in international markets.
Read moreOur expansion into international markets presents increased economic, political, regulatory, and other risks.
Could happenWe are also subject to governmental regulations throughout the world which includes complying with local laws, regulations, and customs in foreign jurisdictions; regulatory requirements or tariffs on goods needed to construct and/or operate our restaurants; compliance with U.S. laws such as the Foreign Corrupt Practices Act, and similar laws in foreign jurisdictions; differences in the registration and/or enforceability of intellectual property and contract rights; adverse tax consequences, profit repatriation, and other restrictions on the transfer of funds; and different and more stringent user protection, data protection, privacy, and other laws. Our failure to manage any of these risks successfully could harm our existing or future international operations and our overall business and results of our operations.
Read moreCorporate responsibility matters could adversely affect our brand, business, results of operations, and financial condition.
Could happenIn addition, some individuals, shareholder activists, government officials, and regulators have expressed opposing views and actions with respect to ESG matters which includes the proposal or enactment of "Anti-ESG" policies and initiatives. Strong opinions continue to be publicly expressed both for and against diversity and inclusion and ESG initiatives and positions taken by many corporations, including our Company, are tracked, monitored, and subject to heightened scrutiny from consumers, investors, advocacy groups, and public figures, potentially leading to consumer boycotts, negative publicity campaigns, litigation, and reputational harm. Negative reputational incidents or perceptions about the Company could adversely impact our business and results of operations by reducing sales, damaging business relationships, and negatively impacting employee retention and recruiting efforts.
Read moreYou should not rely on past changes in our average unit volume or our comparable restaurant sales as an indication of our future results of operations because they may fluctuate significantly.
You should not rely on past changes in our average unit volume or comparable restaurant sales as an indication of our future results of operations, as these metrics may fluctuate significantly over time. A wide range of factors, both within and beyond our control, have historically influenced, and will likely continue to influence, average unit volume and comparable restaurant sales. These factors include, among others, the level of consumer awareness and perception of our restaurant concepts with respect to quality, price, value, and service; the effectiveness of our business strategy; our ability to sustain higher levels of to-go sales and differentiate our concepts within off-premise channels; and the impact of competition both from other restaurants (including fast-casual and quick-service establishments) and alternative food service providers, such as delivery services, meal kits, and grocery stores. Additional factors that can affect our performance include our ability to implement menu price increases without negatively impacting guest traffic or average check size; general economic conditions, adverse weather patterns and natural disasters; seasonal consumer trends; the introduction of new menu items and changes in pricing; a loss of parking or access rights resulting from government action or private transactions; and negative publicity related to food safety, health concerns, service quality, or the integrity of our suppliers’ food processing.
Read more
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.