ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Texas Roadhouse's annualizedNet Income for the quarter that ended in Mar. 2026 was €427 Mil.
Texas Roadhouse's average Total Assets over the quarter that ended in Mar. 2026 was €3,062 Mil. Therefore, Texas Roadhouse's annualized ROA % for the quarter that ended in Mar. 2026 was 13.95%.
The historical rank and industry rank for Texas Roadhouse's ROA % or its related term are showing as below:
FRA:ROW'
s ROA % Range Over the Past 10 Years
Min: 1.45 Med: 10.6 Max: 14.49
Current: 12.33
During the past 13 years, Texas Roadhouse's highest ROA % was 14.49%. The lowest was 1.45%. And the median was 10.60%.
FRA:ROW's ROA % is ranked better than 91.28% of 367
companies
in the Restaurants industry
Industry Median: 2.15
vs FRA:ROW: 12.33
Texas Roadhouse (FRA:ROW) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Texas Roadhouse ROA % Related Terms
Texas Roadhouse ROA % Historical Data
* Premium members only.
The historical data trend for Texas Roadhouse's ROA % 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.
For the Restaurants subindustry, Texas Roadhouse's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's ROA % distribution charts can be found below:
* The bar in red indicates where Texas Roadhouse's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Texas Roadhouse (FRA:ROW) has a ROA % of 13.95% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Texas Roadhouse and its competitors. This is 32% above median its historical median of 10.60. Over the past decade, Texas Roadhouse's ROA % has ranged from 1.45 to 14.49. According to the industry distribution chart, Texas Roadhouse ranks #32 out of 367 companies in the Restaurants industry, placing it in the top 8.7%.
Is Texas Roadhouse's ROA % too high?
Texas Roadhouse's current ROA % of 13.95% is 32% above median its 10-year median of 10.60. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 14.49. The Restaurants industry median ROA % is 2.15. Texas Roadhouse's value of 13.95% is 548.8% above this industry median. Based on the distribution chart, Texas Roadhouse ranks #32 out of 367 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 ROA % compare to DPZ and LKNCY?
According to the Restaurants industry distribution chart, Texas Roadhouse ranks #32 out of 367 companies for ROA %. This places Texas Roadhouse in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 2.15. Texas Roadhouse's value of 13.95% is 548.8% above this benchmark. Historically, Texas Roadhouse's own ROA % has ranged from 1.45 to 14.49 over the past decade. While the company's 10-year median is 10.60 vs. the industry median of 2.15, 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.15, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current ROA % of 13.95% is 548.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Texas Roadhouse and its competitors. For the Restaurants industry, the median ROA % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current ROA % is 13.95%, which is 32% above median its own 10-year median of 10.60. 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 ROA % of 13.95%. The stock's GF Value™ is €163.88, compared to a current price of €164.45 — trading 0.3% above its estimated fair value. The current ROA % is 13.95%, which is 32% above median its 10-year median of 10.60 and 548.8% above the Restaurants industry median of 2.15. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Texas Roadhouse (FRA:ROW), the current ROA % is 13.95% 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 overvalued.
The current stock price of €164.45 is trading 0.3% above its estimated GF Value™ of €163.88.
Key valuation signals for FRA:ROW:
ROA %: 13.95% (32% above median its 10-year median of 10.60)
GF Value™: €163.88 vs. price of €164.45 (0.3% above fair value)
Industry Position: 548.8% above the Restaurants median (#32 of 367)
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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