Texas RoadhouseFRA:ROW +2.36%89 Net Margin % is 7.56% as of Mar. 2026, which is 16% above its 10-year median of 6.51. GuruFocus rates FRA:ROW with a GF Score™ of 89/100 and a GF Value™ of €165.94. The stock has 3 warning signs investors should review. Among 366 Restaurants companies, Texas Roadhouse ranks better than 80.33% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Texas Roadhouse's Net Income for the
three
months ended in Mar. 2026 was €107 Mil. Texas Roadhouse's Revenue for the
three
months ended in Mar. 2026 was €1,413 Mil. Therefore, Texas Roadhouse's net margin for the quarter that ended in Mar. 2026 was 7.56%.
The historical rank and industry rank for Texas Roadhouse's Net Margin % or its related term are showing as below:
FRA:ROW'
s Net Margin % Range Over the Past 10 Years
Min: 1.3 Med: 6.51 Max: 8.07
Current: 6.85
FRA:ROW's Net Margin % is ranked better than 80.33% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs FRA:ROW: 6.85
Texas Roadhouse (FRA:ROW) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Texas Roadhouse Net Margin % Related Terms
Texas Roadhouse Net Margin % Historical Data
* Premium members only.
The historical data trend for Texas Roadhouse's Net Margin % 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.
FRA:ROW vs DPZ, LKNCY, CAVA: Net Margin % Comparison
For the Restaurants subindustry, Texas Roadhouse's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Net Margin % distribution charts can be found below:
* The bar in red indicates where Texas Roadhouse's Net Margin % 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 (FRA:ROW) has a Net Margin % of 7.56% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Texas Roadhouse and its competitors. This is 16% above median its historical median of 6.51. Over the past decade, Texas Roadhouse's Net Margin % has ranged from 1.30 to 8.07. According to the industry distribution chart, Texas Roadhouse ranks #72 out of 366 companies in the Restaurants industry, placing it in the top 19.7%.
Is Texas Roadhouse's Net Margin % too high?
Texas Roadhouse's current Net Margin % of 7.56% is 16% above median its 10-year median of 6.51. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 8.07. The Restaurants industry median Net Margin % is 2.06. Texas Roadhouse's value of 7.56% is 267% above this industry median. Based on the distribution chart, Texas Roadhouse ranks #72 out of 366 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Roadhouse has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Texas Roadhouse's Net Margin % compare to DPZ and LKNCY?
According to the Restaurants industry distribution chart, Texas Roadhouse ranks #72 out of 366 companies for Net Margin %. This places Texas Roadhouse in the top 20% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.06. Texas Roadhouse's value of 7.56% is 267% above this benchmark. Historically, Texas Roadhouse's own Net Margin % has ranged from 1.30 to 8.07 over the past decade. While the company's 10-year median is 6.51 vs. the industry median of 2.06, Texas Roadhouse has consistently been above 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current Net Margin % of 7.56% is 267% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Texas Roadhouse and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current Net Margin % is 7.56%, which is 16% above median its own 10-year median of 6.51. 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?
Texas Roadhouse (FRA:ROW) has a current Net Margin % of 7.56%. The stock's GF Value™ is €165.94, compared to a current price of €158.45 — trading 4.5% below its estimated fair value. The current Net Margin % is 7.56%, which is 16% above median its 10-year median of 6.51 and 267% above the Restaurants industry median of 2.06. Texas Roadhouse's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Texas Roadhouse (FRA:ROW), the current Net Margin % is 7.56% 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 (FRA:ROW) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Roadhouse stock appears to be undervalued.
The current stock price of €158.45 is trading 4.5% below its estimated GF Value™ of €165.94.
Key valuation signals for FRA:ROW:
Net Margin %: 7.56% (16% above median its 10-year median of 6.51)
GF Value™: €165.94 vs. price of €158.45 (4.5% below fair value)
Industry Position: 267% above the Restaurants median (#72 of 366)
No single metric tells the full story. See the FRA:ROW 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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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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