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Texas RoadhouseTXRH -0.10%89 Debt-to-Equity is 0.70 as of Mar. 2026, which is 6% above its 10-year median of 0.66. GuruFocus rates TXRH with a GF Score™ of 89/100 and a GF Value™ of $198.36 (Fairly Valued). The stock has 6 warning signs investors should review. Among 320 Restaurants companies, Texas Roadhouse ranks better than 56.87% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Texas Roadhouse's Debt-to-Equity or its related term are showing as below:
TXRH'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0.66 Max: 0.94
Current: 0.7
During the past 13 years, the highest Debt-to-Equity Ratio of Texas Roadhouse was 0.94. The lowest was 0.00. And the median was 0.66.
TXRH's Debt-to-Equity is ranked better than 56.87% of 320
companies
in the Restaurants industry
Industry Median: 0.905
vs TXRH: 0.70
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Texas Roadhouse Debt-to-Equity Related Terms
Texas Roadhouse Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Texas Roadhouse's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TXRH vs DPZ, YUMC, LKNCY: Debt-to-Equity Comparison
For the Restaurants subindustry, Texas Roadhouse's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Roadhouse Debt-to-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Texas Roadhouse's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Texas Roadhouse (TXRH) has a Debt-to-Equity of 0.70 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Texas Roadhouse and its competitors. This is near median its historical median of 0.66. According to the industry distribution chart, Texas Roadhouse ranks #138 out of 320 companies in the Restaurants industry, placing it in the top 43.1%.
Is Texas Roadhouse's Debt-to-Equity too high?
Texas Roadhouse's current Debt-to-Equity of 0.70 is near median its 10-year median of 0.66. The Restaurants industry median Debt-to-Equity is 0.91. Texas Roadhouse's value of 0.70 is 22.7% below this industry median. Based on the distribution chart, Texas Roadhouse ranks #138 out of 320 companies in the Restaurants industry, which is above the industry midpoint. Overall, Texas Roadhouse has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Roadhouse's Debt-to-Equity compare to DPZ and YUMC?
According to the Restaurants industry distribution chart, Texas Roadhouse ranks #138 out of 320 companies for Debt-to-Equity. This puts Texas Roadhouse in the upper half of its industry. The industry median Debt-to-Equity is 0.91. Texas Roadhouse's value of 0.70 is 22.7% below this benchmark. While the company's 10-year median is 0.66 vs. the industry median of 0.91, Texas Roadhouse has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Restaurants company?
The median Debt-to-Equity among Restaurants companies is 0.91, based on 320 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current Debt-to-Equity of 0.70 is 22.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Texas Roadhouse and its competitors. For the Restaurants industry, the median Debt-to-Equity is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current Debt-to-Equity is 0.70, which is near median its own 10-year median of 0.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Roadhouse stock overvalued right now?
Based on GuruFocus' analysis, Texas Roadhouse (TXRH) is currently considered Fairly Valued. The stock's GF Value™ is $198.36, compared to a current price of $207.84 — trading 4.8% above its estimated fair value. The current Debt-to-Equity is 0.70, which is near median its 10-year median of 0.66 and 22.7% below the Restaurants industry median of 0.91. Texas Roadhouse's overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Texas Roadhouse (TXRH), the current Debt-to-Equity is 0.70 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Roadhouse (TXRH) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Roadhouse stock appears to be overvalued.
The current stock price of $207.84 is trading 4.8% above its estimated GF Value™ of $198.36.
GuruFocus considers Texas Roadhouse to be Fairly Valued.
Key valuation signals for TXRH:
Debt-to-Equity: 0.70 (near median its 10-year median of 0.66)
GF Value™: $198.36 vs. price of $207.84 (4.8% above fair value)
Industry Position: 22.7% below the Restaurants median (#138 of 320)
No single metric tells the full story. See the TXRH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Geographically, the majority of the firm's restaurants are in the USA, with a few in foreign countries.
89GF Score
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