Texas Roadhouse (FRA:ROW) ROCE %: 22.69% (As of Mar. 2026)


FRA:ROW Texas Roadhouse Inc FRA:ROW
89 GF Score
Price €160.00
GF Value €164.41
! 5 Warning Signs
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What is Texas Roadhouse ROCE %?

Texas Roadhouse FRA:ROW +0.98% 89 ROCE % is 22.69% as of Mar. 2026. GuruFocus rates FRA:ROW with a GF Score™ of 89/100 and a GF Value™ of €164.41. The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Texas Roadhouse's annualized ROCE % for the quarter that ended in Mar. 2026 was 22.69%.

Texas Roadhouse  (FRA:ROW) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Texas Roadhouse ROCE % Related Terms

Texas Roadhouse ROCE % Historical Data

* Premium members only.

The historical data trend for Texas Roadhouse's ROCE % 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.

Texas Roadhouse ROCE % Chart

Texas Roadhouse Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.56 17.56 17.82 23.92 17.99

Texas Roadhouse Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.22 23.63 15.04 14.85 22.69
FRA:ROW
89GF Score
Texas Roadhouse Inc FRA:ROW
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Texas Roadhouse ROCE % Calculation

Texas Roadhouse's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=405.726/( ( (3047.194 - 790.864) + (3031.249 - 776.147) )/ 2 )
=405.726/( (2256.33+2255.102)/ 2 )
=405.726/2255.716
=17.99 %

Texas Roadhouse's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=529.3/( ( (3031.249 - 776.147) + (3092.141 - 682.347) )/ 2 )
=529.3/( ( 2255.102 + 2409.794 )/ 2 )
=529.3/2332.448
=22.69 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 22.69% mean?
Texas Roadhouse (FRA:ROW) has a ROCE % of 22.69% as of Mar. 2026.
Is Texas Roadhouse's ROCE % too high?
Texas Roadhouse's current ROCE % is 22.69%. The Restaurants industry median ROCE % is 6.01. Texas Roadhouse's value of 22.69% is 277.5% above this industry median. 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 ROCE % compare to DPZ and LKNCY?
Texas Roadhouse's ROCE % of 22.69% can be compared against companies in the Restaurants industry. The industry median ROCE % is 6.01. Texas Roadhouse's value of 22.69% is 277.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Restaurants company?
The median ROCE % among Restaurants companies is 6.01, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current ROCE % of 22.69% is 277.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median ROCE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current ROCE % is 22.69%. 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 ROCE % of 22.69%. The stock's GF Value™ is €164.41, compared to a current price of €160.00 — trading 2.7% below its estimated fair value. The current ROCE % is 22.69% and 277.5% above the Restaurants industry median of 6.01. Texas Roadhouse's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Texas Roadhouse (FRA:ROW), the current ROCE % is 22.69% 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 €160.00 is trading 2.7% below its estimated GF Value™ of €164.41.

Key valuation signals for FRA:ROW:

  • ROCE %: 22.69%
  • GF Value™: €164.41 vs. price of €160.00 (2.7% below fair value)
  • GF Score™: 89/100 with 5 warning signs
  • Industry Position: 277.5% above the Restaurants median

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 Business Description

Address 6040 Dutchmans Lane, Louisville, KY, USA, 40205
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€160.00
Price
€164.41
GF Value