Texas Roadhouse (NASDAQ: TXRH) reported Q3 EPS of $1.25, $0.03 worse than the analyst estimate of $1.28. Revenue for the quarter came in at $1.44 billion versus the consensus estimate of $1.43 billion.

2025 Outlook

Comparable restaurant sales at company restaurants for the first five weeks of the fourth quarter of the 2025 fiscal year increased 5.4% compared to 2024. In addition, the Company implemented a menu price increase of approximately 1.7% at the beginning of the fourth quarter.

Management updated the following expectations for 2025:

Commodity inflation of approximately 6%; and
An effective income tax rate of approximately 14.5%.

Management reiterated the following expectations for 2025:

Positive comparable restaurant sales growth, including the benefit of menu pricing actions;
Store week growth of approximately 5%;
Wage and other labor inflation of approximately 4%; and
Total capital expenditures of approximately $400 million.

2026 Outlook

Management provided the following initial expectations for 2026:

Positive comparable restaurant sales growth including the benefit of 2025 menu pricing actions;
Store week growth of 5% to 6%, including the benefit from franchise acquisitions;
Commodity inflation of approximately 7%;
Wage and other labor inflation of 3% to 4%;
An effective income tax rate of approximately 15%; and
Total capital expenditures of approximately $400 million.

For earnings history and earnings-related data on Texas Roadhouse (TXRH) click here.