Texas RoadhouseFRA:ROW +4.50%89 Altman Z-Score is 6.44 as of Jun. 30, 2026, which is 12% above its 10-year median of 5.75. GuruFocus rates FRA:ROW with a GF Score™ of 89/100 and a GF Value™ of €173.72. The stock has 3 warning signs investors should review. Among 360 Restaurants companies, Texas Roadhouse ranks better than 91.67% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 6.35 is strong.
Texas Roadhouse has a Altman Z-Score of 6.44, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Texas Roadhouse's Altman Z-Score or its related term are showing as below:
FRA:ROW'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.49 Med: 5.75 Max: 10.71
Current: 6.35
During the past 13 years, Texas Roadhouse's highest Altman Z-Score was 10.71. The lowest was 3.49. And the median was 5.75.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Texas Roadhouse Altman Z-Score Related Terms
Texas Roadhouse Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Texas Roadhouse's Altman Z-Score 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 YUMC, DPZ, BROS: Altman Z-Score Comparison
For the Restaurants subindustry, Texas Roadhouse's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Texas Roadhouse's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Texas Roadhouse's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
-0.1193
+
1.4
*
0.4244
+
3.3
*
0.1368
+
0.6
*
6.4127
+
1.0
*
1.6859
=
6.44
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Texas Roadhouse (FRA:ROW) has a Altman Z-Score of 6.44 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Texas Roadhouse and its competitors. This is 12% above median its historical median of 5.75. Over the past decade, Texas Roadhouse's Altman Z-Score has ranged from 3.49 to 10.71. According to the industry distribution chart, Texas Roadhouse ranks #30 out of 360 companies in the Restaurants industry, placing it in the top 8.3%.
Is Texas Roadhouse's Altman Z-Score too high?
Texas Roadhouse's current Altman Z-Score of 6.44 is 12% above median its 10-year median of 5.75. Over the past 10 years, this metric has ranged from a low of 3.49 to a high of 10.71. The Restaurants industry median Altman Z-Score is 2.25. Texas Roadhouse's value of 6.44 is 186.9% above this industry median. Based on the distribution chart, Texas Roadhouse ranks #30 out of 360 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 Altman Z-Score compare to YUMC and DPZ?
According to the Restaurants industry distribution chart, Texas Roadhouse ranks #30 out of 360 companies for Altman Z-Score. This places Texas Roadhouse in the top 8% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.25. Texas Roadhouse's value of 6.44 is 186.9% above this benchmark. Historically, Texas Roadhouse's own Altman Z-Score has ranged from 3.49 to 10.71 over the past decade. While the company's 10-year median is 5.75 vs. the industry median of 2.25, 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 Altman Z-Score for a Restaurants company?
The median Altman Z-Score among Restaurants companies is 2.25, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current Altman Z-Score of 6.44 is 186.9% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Texas Roadhouse and its competitors. For the Restaurants industry, the median Altman Z-Score is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current Altman Z-Score is 6.44, which is 12% above median its own 10-year median of 5.75. 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 Altman Z-Score of 6.44. The stock's GF Value™ is €173.72, compared to a current price of €171.85 — trading 1.1% below its estimated fair value. The current Altman Z-Score is 6.44, which is 12% above median its 10-year median of 5.75 and 186.9% above the Restaurants industry median of 2.25. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Texas Roadhouse (FRA:ROW), the current Altman Z-Score is 6.44 as of Jun. 30, 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 €171.85 is trading 1.1% below its estimated GF Value™ of €173.72.
Key valuation signals for FRA:ROW:
Altman Z-Score: 6.44 (12% above median its 10-year median of 5.75)
GF Value™: €173.72 vs. price of €171.85 (1.1% below fair value)
Industry Position: 186.9% above the Restaurants median (#30 of 360)
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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