Texas Roadhouse, Inc 10-Q for FY2025 Q3

Texas Roadhouse, Inc. (TXRH)

10-Q 2025-11-07 For: 2025-09-30

Added on April 10, 2026

About this 10-Q

Texas Roadhouse, Inc filed this 10-Q on November 7, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.44B; up 12.8% from $1.27B a year earlier
Net income: $84.9M; down 2.2% from net income of $86.77M a year earlier
Diluted EPS: $1.25; down 0.8% from $1.26 a year earlier

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Delaware		20-1083890
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification Number)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TXRH	NASDAQ Global Select Market

Large Accelerated Filer ☒	Accelerated Filer ☐	Non-accelerated Filer ☐	Smaller Reporting Company ☐
			Emerging Growth Company ☐

PART I. FINANCIAL INFORMATION

Item 1 — Financial Statements (Unaudited) — Texas Roadhouse, Inc. and Subsidiaries		3
Condensed Consolidated Balance Sheets —September 30, 2025 and December 31, 2024		3
Condensed Consolidated Statements of Income — For the 13 and 39 Weeks Ended September 30, 2025 and September 24, 2024		4
Condensed Consolidated Statements of Stockholders’ Equity — For the 13 and 39 Weeks Ended September 30, 2025 and September 24, 2024		5
Condensed Consolidated Statements of Cash Flows — For the 39 Weeks Ended September 30, 2025 and September 24, 2024		7
Notes to Condensed Consolidated Financial Statements		8
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3 — Quantitative and Qualitative Disclosures About Market Risk		28
Item 4 — Controls and Procedures		28

PART II. OTHER INFORMATION

Item 1 — Legal Proceedings		29
Item 1A — Risk Factors		29
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds		29
Item 3 — Defaults Upon Senior Securities		29
Item 4 — Mine Safety Disclosures		29
Item 5 — Other Information		30
Item 6 — Exhibits		30

Signatures		31


	September 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	108,172	$	245,225
Receivables, net of allowance for doubtful accounts of $14 at September 30, 2025 and $7 at December 31, 2024		61,125		193,170
Inventories, net		45,476		40,756
Prepaid expenses and other current assets		34,593		37,417
Total current assets		249,366		516,568
Property and equipment, net of accumulated depreciation of $1,333,531 at September 30, 2025 and $1,223,064 at December 31, 2024		1,787,789		1,617,673
Operating lease right-of-use assets, net		841,964		769,865
Goodwill		230,305		169,684
Intangible assets, net of accumulated amortization of $28,061 at September 30, 2025 and $23,147 at December 31, 2024		13,132		1,265
Other assets		144,057		115,724
Total assets	$	3,266,613	$	3,190,779
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of operating lease liabilities	$	29,956	$	28,172
Accounts payable		141,464		144,791
Deferred revenue-gift cards		248,560		401,198
Accrued wages		93,888		101,981
Income taxes payable		97		2,986
Accrued taxes and licenses		55,678		56,824
Other accrued liabilities		119,188		92,178
Total current liabilities		688,831		828,130
Operating lease liabilities, net of current portion		903,788		826,300
Restricted stock and other deposits		9,420		9,288
Deferred tax liabilities, net		9,724		8,184
Other liabilities		179,241		145,154
Total liabilities		1,791,004		1,817,056
Texas Roadhouse, Inc. and subsidiaries stockholders’ equity:
Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding)		—		—
Common stock ($0.001 par value, 100,000,000 shares authorized, 66,228,169 and 66,574,626 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively)		66		67
Retained earnings		1,460,401		1,358,280
Total Texas Roadhouse, Inc. and subsidiaries stockholders’ equity		1,460,467		1,358,347
Noncontrolling interests		15,142		15,376
Total equity		1,475,609		1,373,723
Total liabilities and equity	$	3,266,613	$	3,190,779



	13 Weeks Ended				39 Weeks Ended
	September 30, 2025		September 24, 2024		September 30, 2025		September 24, 2024
Revenue:
Restaurant and other sales	$	1,429,111	$	1,265,279	$	4,373,427	$	3,913,073
Royalties and franchise fees		7,231		7,720		22,617		22,345
Total revenue		1,436,342		1,272,999		4,396,044		3,935,418
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Food and beverage		511,531		424,566		1,513,846		1,305,658
Labor		480,297		427,470		1,455,321		1,293,229
Rent		23,085		20,162		68,590		59,543
Other operating		209,917		191,011		634,762		581,515
Pre-opening		7,419		7,282		19,695		21,579
Depreciation and amortization		52,628		44,510		152,172		128,918
Impairment and closure, net		140		844		279		1,135
General and administrative		54,376		55,131		173,356		165,874
Total costs and expenses		1,339,393		1,170,976		4,018,021		3,557,451
Income from operations		96,949		102,023		378,023		377,967
Interest income, net		643		1,916		2,988		5,007
Equity income from investments in unconsolidated affiliates		120		235		1,771		778
Income before taxes	$	97,712	$	104,174	$	382,782	$	383,752
Income tax expense		12,812		17,400		55,130		57,913
Net income including noncontrolling interests		84,900		86,774	$	327,652	$	325,839
Less: Net income attributable to noncontrolling interests		1,728		2,362		6,733		8,080
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	$	83,172	$	84,412	$	320,919	$	317,759

Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic	$	1.25	$	1.27	$	4.84	$	4.76
Diluted	$	1.25	$	1.26	$	4.82	$	4.74
Weighted average shares outstanding:
Basic		66,358		66,704		66,373		66,777
Diluted		66,476		66,943		66,564		67,023
Cash dividends declared per share	$	0.68	$	0.61	$	2.04	$	1.83


	For the 13 Weeks Ended September 30, 2025
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, July 1, 2025	66,450,572	$	66	$	—	$	1,450,728	$	1,450,794	$	15,428	$	1,466,222
Net income	—		—		—		83,172		83,172		1,728		84,900
Distributions to noncontrolling interest holders	—		—		—		—		—		(2,014)		(2,014)
Dividends declared ($0.68 per share)	—		—		—		(45,075)		(45,075)		—		(45,075)
Shares issued under share-based compensation plans including tax effects	11,506		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(3,369)		—		(603)		—		(603)		—		(603)
Repurchase of shares of common stock, including excise tax as applicable	(230,540)		—		(11,977)		(28,424)		(40,401)		—		(40,401)
Share-based compensation	—		—		12,580		—		12,580		—		12,580
Balance, September 30, 2025	66,228,169	$	66	$	—	$	1,460,401	$	1,460,467	$	15,142	$	1,475,609


	For the 13 Weeks Ended September 24, 2024
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, June 25, 2024	66,727,898	$	67	$	—	$	1,262,569	$	1,262,636	$	15,054	$	1,277,690
Net income	—		—		—		84,412		84,412		2,362		86,774
Distributions to noncontrolling interest holders	—		—		—		—		—		(2,485)		(2,485)
Acquisition of noncontrolling interest, net of deferred taxes	—		—		(23)		—		(23)		23		—
Dividends declared ($0.61 per share)	—		—		—		(40,696)		(40,696)		—		(40,696)
Shares issued under share-based compensation plans including tax effects	60,735		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(18,562)		—		(3,198)		—		(3,198)		—		(3,198)
Repurchase of shares of common stock, including excise tax as applicable	(56,248)		—		(11,555)		1,938		(9,617)		—		(9,617)
Share-based compensation	—		—		14,776		—		14,776		—		14,776
Balance, September 24, 2024	66,713,823	$	67	$	—	$	1,308,223	$	1,308,290	$	14,954	$	1,323,244


	For the 39 Weeks Ended September 30, 2025
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, December 31, 2024	66,574,626	$	67	$	—	$	1,358,280	$	1,358,347	$	15,376	$	1,373,723
Net income	—		—		—		320,919		320,919		6,733		327,652
Distributions to noncontrolling interest holders	—		—		—		—		—		(6,967)		(6,967)
Dividends declared ($2.04 per share)	—		—		—		(135,367)		(135,367)		—		(135,367)
Shares issued under share-based compensation plans including tax effects	330,453		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(103,581)		—		(18,686)		—		(18,686)		—		(18,686)
Repurchase of shares of common stock, including excise taxes	(573,329)		(1)		(17,143)		(83,431)		(100,575)		—		(100,575)
Share-based compensation	—		—		35,829		—		35,829		—		35,829
Balance, September 30, 2025	66,228,169	$	66	$	—	$	1,460,401	$	1,460,467	$	15,142	$	1,475,609


	For the 39 Weeks Ended September 24, 2024
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, December 26, 2023	66,789,464	$	67	$	—	$	1,141,595	$	1,141,662	$	15,849	$	1,157,511
Net income	—		—		—		317,759		317,759		8,080		325,839
Distributions to noncontrolling interest holders	—		—		—		—		—		(8,110)		(8,110)
Acquisition of noncontrolling interest, net of deferred taxes	—		—		(3,297)		—		(3,297)		(865)		(4,162)
Dividends declared ($1.83 per share)	—		—		—		(122,205)		(122,205)		—		(122,205)
Shares issued under share-based compensation plans including tax effects	295,519		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(92,246)		—		(14,027)		—		(14,027)		—		(14,027)
Repurchase of shares of common stock, including excise tax as applicable	(278,914)		—		(15,830)		(28,926)		(44,756)		—		(44,756)
Share-based compensation	—		—		33,154		—		33,154		—		33,154
Balance, September 24, 2024	66,713,823	$	67	$	—	$	1,308,223	$	1,308,290	$	14,954	$	1,323,244


Current assets	$	1,167
Property and equipment		20,020
Operating lease right-of-use assets		39,755
Goodwill		60,622
Intangible assets		16,780
Other assets		470
Current portion of operating lease liabilities		(1,383)
Deferred revenue-gift cards		(1,901)
Current liabilities		(1,148)
Operating lease liabilities, net of current portion		(40,152)
	$	94,230


	Fair Value Measurements
	Level	September 30, 2025		December 31, 2024
Deferred compensation plan—assets	1	$	127,526	$	101,071
Deferred compensation plan—liabilities	1	$	(127,526)	$	(101,071)


	For the 13 Weeks Ended September 30, 2025
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	1,336,660	$	82,922	$	9,529	$	1,429,111
Restaurant operating costs (excluding depreciation and amortization)
Food and Beverage		484,872		23,612		3,047		511,531
Labor		446,368		30,907		3,022		480,297
Rent		20,706		2,091		288		23,085
Other Operating		192,786		15,263		1,868		209,917
Restaurant margin	$	191,928	$	11,049	$	1,304	$	204,281

Depreciation and amortization	$	43,773	$	4,800	$	4,055	$	52,628
Segment assets		2,613,014		289,606		363,993		3,266,613
Capital expenditures		94,945		10,797		23,154		128,896

	For the 13 Weeks Ended September 24, 2024
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	1,184,125	$	73,416	$	7,738	$	1,265,279
Restaurant operating costs (excluding depreciation and amortization)
Food and Beverage		401,259		20,815		2,492		424,566
Labor		397,780		27,223		2,467		427,470
Rent		17,992		1,969		201		20,162
Other Operating		176,545		12,919		1,547		191,011
Restaurant margin	$	190,549	$	10,490	$	1,031	$	202,070

Depreciation and amortization	$	37,372	$	4,150	$	2,988	$	44,510
Segment assets		2,286,417		244,773		382,625		2,913,815
Capital expenditures		81,882		6,735		2,444		91,061

	For the 39 Weeks Ended September 30, 2025
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	4,097,648	$	248,724	$	27,055	$	4,373,427
Restaurant operating costs (excluding depreciation and amortization)
Food and Beverage		1,435,234		70,058		8,554		1,513,846
Labor		1,356,696		90,078		8,547		1,455,321
Rent		61,625		6,173		792		68,590
Other Operating		585,296		44,231		5,235		634,762
Restaurant margin	$	658,797	$	38,184	$	3,927	$	700,908

Depreciation and amortization	$	126,103	$	13,679	$	12,390	$	152,172
Segment assets		2,613,014		289,606		363,993		3,266,613
Capital expenditures		232,803		36,705		29,300		298,808



Reconciliation of Income from Operations to Restaurant Margin
($ In thousands, except restaurant margin $ per store week)
	13 Weeks Ended				39 Weeks Ended
	September 30, 2025		September 24, 2024		September 30, 2025		September 24, 2024
Income from operations	$	96,949	$	$ 102,023	$	378,023	$	377,967

Less:
Royalties and franchise fees		7,231		7,720		22,617		22,345

Add:
Pre-opening		7,419		7,282		19,695		21,579
Depreciation and amortization		52,628		44,510		152,172		128,918
Impairment and closure, net		140		844		279		1,135
General and administrative		54,376		55,131		173,356		165,874
Restaurant margin	$	204,281	$	$ 202,070	$	700,908	$	673,128

Restaurant margin $/store week	$	22,513	$	23,784	$	26,004	$	26,725
Restaurant margin (as a percentage of restaurant and other sales)		14.3%		16.0%		16.0%		17.2%


	September 30, 2025	September 24, 2024
Company - Texas Roadhouse	638	601
Company - Bubba's 33	54	48
Company - Jaggers	10	8
Total company	702	657

Franchise - Texas Roadhouse - Domestic	39	56
Franchise - Jaggers - Domestic	5	3
Franchise - Texas Roadhouse - International (1)	59	56
Franchise - Jaggers - International	1	-
Total franchise	104	115

Total	806	772


	Q3 2025			Q3 2024			2025 YTD			2024 YTD
Company Restaurants:
Increase in store weeks		6.8	%		5.8	%		7.0	%		5.4	%
Increase in average unit volume		5.2	%		7.5	%		4.0	%		8.1	%
Other		0.9	%		0.2	%		0.8	%		—	%
Total increase in restaurant and other sales		12.9	%		13.5	%		11.8	%		13.5	%

Store weeks		9,074			8,496			26,954			25,187
Comparable restaurant sales		6.1	%		8.5	%		5.1	%		8.8	%

Texas Roadhouse restaurants:
Store weeks		8,258			7,768			24,595			23,070
Comparable restaurant sales		6.3	%		8.7	%		5.2	%		8.9	%
Average unit volume (in thousands)	$	2,104		$	1,994		$	6,533		$	6,261

Weekly sales by group:
Comparable restaurants (599, 560, 583, and 549 units)	$	163,079		$	153,870		$	168,909		$	160,715
Average unit volume restaurants (26, 22, 28, and 17 units) (1)	$	132,628		$	132,430		$	138,305		$	153,918
Restaurants less than six months old (13, 19, 27, and 35 units)	$	158,932		$	142,628		$	153,842		$	142,925

Bubba's 33 restaurants:
Store weeks		691			624			2,000			1,805
Comparable restaurant sales		1.8	%		5.3	%		3.4	%		5.0	%
Average unit volume (in thousands)	$	1,533		$	1,500		$	4,763		$	4,633

Weekly sales by group:
Comparable restaurants (45, 40, 41, and 37 units)	$	117,470		$	116,330		$	122,859		$	120,952
Average unit volume restaurants (4, 5, 7, and 4 units) (1)	$	123,363		$	109,485		$	117,874		$	100,893
Restaurants less than six months old (5, 3, 6, and 7 units)	$	132,031		$	140,369		$	141,243		$	128,746


					Maximum Number
					(or Approximate
				Total Number of	Dollar Value)
				Shares Purchased	of Shares that
	Total Number	Average		as Part of Publicly	May Yet Be
	of Shares	Price Paid		Announced Plans	Purchased Under the
Period	Purchased	per Share		or Programs	Plans or Programs
July 2 to July 29	—	$	—	—	$	469,996,126
July 30 to August 26	136,706	$	175.06	136,706	$	446,063,990
August 27 to September 30	93,834	$	171.24	93,834	$	429,996,157
Total	230,540			230,540


	13 Weeks Ended				39 Weeks Ended
	September 30, 2025		September 24, 2024		September 30, 2025		September 24, 2024
Beginning balance	$	277,293	$	250,485	$	401,198	$	373,913
Gift card activations, net of third-party fees		61,572		56,527		205,054		191,409
Gift card redemptions and breakage		(90,305)		(80,386)		(357,692)		(338,696)
Ending balance	$	248,560	$	226,626	$	248,560	$	226,626


Exhibit No.		Description
10.1		First Amendment to Employment Agreement between Texas Roadhouse Management Corp. and Gerald L. Morgan (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated August 14, 2025)
10.2		First Amendment to Employment Agreement between Texas Roadhouse Management Corp. and Christopher C. Colson (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated August 14, 2025)
10.3		Executive Employment Agreement between Texas Roadhouse Management Corp. and Lloyd Paul Marshall (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated August 14, 2025)
31.1		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	TEXAS ROADHOUSE, INC.

Date: November 7, 2025	By:	/s/ GERALD L. MORGAN
		Gerald L. Morgan
		Chief Executive Officer (Principal Executive Officer)


Date: November 7, 2025	By:	/s/ KEITH V. HUMPICH
		Keith V. Humpich
		Interim Chief Financial Officer (Principal Financial Officer)
		(Principal Accounting Officer)