Q4 2025 Texas Roadhouse Inc Earnings Call Transcript
Key Points
- Texas Roadhouse Inc (TXRH) achieved nearly $5.9 billion in revenue for 2025, with all three brands showing positive sales and traffic growth.
- The company completed its 60th consecutive quarter of comparable restaurant sales growth, excluding 2020.
- TXRH opened its 800th system-wide restaurant and acquired 20 franchise locations, demonstrating significant expansion.
- The rollout of digital kitchens and upgraded guest management systems was completed, enhancing operational efficiency.
- TXRH raised over $40 million for local schools and non-profit organizations through dine-to-donate fundraisers, showcasing strong community involvement.
- Commodity inflation, particularly beef, remains a significant headwind, with an expected 7% increase in 2026.
- Restaurant margin dollars decreased by 15.6% in the fourth quarter, and diluted earnings per share fell by 26.1%.
- Labor costs as a percentage of total sales increased, with wage and other labor inflation expected to continue in 2026.
- The fourth quarter saw a 0.6% decline in store weeks, impacting overall revenue growth.
- TXRH faces challenges in maintaining restaurant margin percentages due to ongoing cost pressures.
Good evening and welcome to the Texas Roadhouse fourth-quarter earnings conference call.
Today's call is being recorded. (Operator Instructions)
I would now like to introduce Michael Bailen, Vice President of Investor Relations for Texas Roadhouse. You may begin your conference. .
Thank you, [Krista]. Good evening.
By now, you should have access to our earnings release for the fourth quarter ended December 30, 2025. It may also be found on our website at texasroadhouse.com in the Investors section.
I would like to remind everyone that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance; and, therefore, undue reliance should not be placed upon them.
We refer all of you to our earnings release and our recent filings with the SEC. These documents provide a more detailed discussion of the relevant factors that could cause actual results to differ materially from those forward
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