TXRH

Texas Roadhouse, Inc.

Fundamental data last updated:October 12, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Restaurants

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names. As of December 28, 2021, it operated 566 domestic restaurants and 101 franchise restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

 


VALUATION

P/E

29.10

Market Cap ($M USD)

$12.05B

Forward P/E

16.80

PEG

0.23

PRICE TO SALES

1.99

PRICE TO BOOK

7.97

EV / EBITDA

18.16

5-Year Average P/E

Free Cash Flow Yield

2.99%

DCF Value

$83.08

Graham Number

$57.11

Price to FCF

33.41

EV to FCF

35.74

Earnings Yield

3.44%

FCF Yield

2.99%

DIVIDEND

Yield

1.52%

Annual Payout

$2.79

Payout Ratio

44.42%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.30

Next Year EPS Growth Estimate

$10.91

Next Year Revenue Growth Estimate

$9.08B

Return on Equity (ROE)

28.21%

FREE CASH FLOW

Operating Margin

8.26%

Debt-to-Equity

1.29

Piotroski F-Score

5

Altman Z-Score

6.13

Return on Invested Capital (ROIC)

17.98%

Current Ratio

0.46

Quick Ratio

0.40

Net Debt to EBITDA

1.18

Interest Coverage

0.00

Gross Profit margin

14.01%

FCF PER SHARE

$5.47

REVENUE PER SHARE

$91.98

Gainseekers Quantitative Analysis

Summary

Texas Roadhouse, Inc. presents a perplexing valuation scenario. Despite a robust Altman Z-score of 6.05 indicating financial safety, the stock’s market price has traded significantly above its DCF value, suggesting potential overvaluation. The Forward P/E of 16.26 is more reasonable, hinting at expected earnings growth, yet the Earnings Yield of 3.55% is modest. The Graham Number further underscores this overvaluation, as the stock price far exceeds it. Investors must weigh these valuation concerns against the company’s solid Return on Equity of 28.21%, which reflects strong management execution.

AI Exposure / Tech Reliance

In the restaurant industry, Texas Roadhouse faces unique challenges and opportunities with AI and tech advancements. While not directly tech-driven, the company can leverage AI for supply chain optimization and customer engagement. However, its core business remains reliant on traditional dining experiences, which may limit tech adaptability.

The Bull Case

For the discerning GARP investor, Texas Roadhouse offers compelling strengths. A high ROIC of 17.98% showcases efficient capital use, while a Piotroski F-Score of 6 indicates decent financial health. The company's operating margin of 8.26% and a respectable FCF Yield suggest solid cash generation capabilities. These metrics paint a picture of a company with pricing power and operational efficiency, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

However, the bear case cannot be ignored. The Price/Book ratio of 7.71 and Price/Sales of 1.93 highlight a potentially inflated valuation. The stock's proximity to its 52-week high suggests technical overextension. Additionally, a Current Ratio of 0.46 raises liquidity concerns, indicating potential short-term financial strain. These factors, combined with a high EV to EBITDA of 17.66, suggest caution for investors wary of overpaying.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$191.46

Institutional Ownership %

1-Year Beta

0.78

Insider Buying % (6 Mo)

Distance to 52-Week High

7.45%

Distance to 52-Week Low

16.09%

EARNINGS SURPRISE %

3.89%

50-DAY SMA

$167.31

200-DAY SMA

$171.94

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.