Texas Roadhouse reported second quarter 2026 revenue of $1.68 billion, surpassing analyst estimates, although diluted EPS of $1.85 missed the $1.90 consensus. Comparable restaurant sales grew 6.2%, driven by strong traffic trends and record average weekly sales, though this was below the 7.5% growth anticipated by the market. Profitability was impacted by significant cost headwinds, including 7.0% commodity inflation and 3.9% wage inflation, which contracted restaurant-level margins.
Key Highlights
- Comparable restaurant sales increased 6.2% for the quarter, with momentum continuing into the first five weeks of the third quarter at a similar 6.2% growth rate.
- Restaurant margin as a percentage of sales decreased 66 basis points to 16.4%, primarily due to a 7.0% surge in commodity costs and higher labor expenses.
- Average weekly sales reached a record $177,252, with to-go sales accounting for $25,369 of that total.
- System-wide expansion continued with the opening of nine company-owned restaurants and one franchise location during the second quarter.
- Management updated its full-year 2026 outlook, now expecting commodity inflation of approximately 5% and an effective tax rate of 14%.