Texas Roadhouse Inc

texasroadhouse.com

What Do They Do?

Runs casual-dining restaurants serving steaks and meals, plus burger-and-pizza and fast-casual burger-and-chicken concepts for diners.

How Do They Make Money?

Guests pay for food and drinks when sold at company-run restaurants. Franchisees pay royalties and marketing fees as restaurants make sales, upfront and development fees for franchise rights, service fees as services are provided, and licensed-product royalties as products sell.

FY2025 revenue by product or service revenue

Segment	Share	How money arrives
Restaurant and other sales Sold outright	99% FY2022: 99%	Sold outright
Franchise royalties Usage-based	0.5% FY2022: 0.6%	Usage-based
Franchise fees Sold outright	0.1% FY2022: 0.1%	Sold outright

Who Are Their Customers?

Guests buy meals at company-operated and franchised restaurants; branded food and accessories are also sold online and through select retailers.

Do Revenues Turn Into Profits?

Yes. It kept 7 cents of every revenue dollar as net income in FY2025 and turned 6 cents into free cash flow.

Operating income, FY2025

8% of revenue

▼ −8% vs FY2024 ($516.5M, 10%)

Net income, FY2025

7% of revenue

▼ −7% vs FY2024 ($444.3M, 8%)

Free cash flow, FY2025

6% of revenue

▼ −14% vs FY2024 ($399.3M, 7%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +11%; vs $1.5B in Q2 FY2025
Net income: ▼ −2%; vs $126.7M in Q2 FY2025

Restaurant and other sales share of revenue vs 99.5% in Q2 FY2025

Aug 6, 2026 Updated commodity inflation outlook Set commodity inflation at approximately 5% and reiterated store-week growth of 5% to 6% for 2026.
May 7, 2026 Updated commodity inflation and store-growth expectations Set commodity inflation at 6% to 7% and reiterated store-week growth of 5% to 6% for 2026.

Growing. Revenue grew 70% in 4 years, from $3.5B in FY2021 to $5.9B in FY2025, about 14% a year.

Revenue over time

Restaurant and other sales Franchise royalties Franchise fees

$10B$5B$0

FY2021 FY2022 FY2023 FY2024 FY2025

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