Texas Roadhouse reported first quarter 2026 revenue of $1.63 billion and EPS of $1.87, slightly missing revenue estimates but beating earnings expectations. The results were driven by continued traffic and sales growth, though margins faced pressure from inflation.
Key Highlights
- Comparable restaurant sales increased by 7.1% in the first quarter, showing continued strong consumer demand.
- Restaurant-level margins contracted by 36 basis points to 16.3%, as 6.2% commodity inflation and 3.8% labor inflation outpaced sales leverage.
- For the first five weeks of the second quarter, comparable sales growth has moderated to 6.5%, and management updated its full-year 2026 commodity inflation outlook to 6% to 7%.