Texas Roadhouse combines consistent unit growth with a proven value‑oriented operating model which has produced attractive revenue and earnings growth through multiple economic cycles. The company benefits from scale efficiencies in purchasing, marketing, and operations, while its focus on affordable, full‑service steakhouse dining continues to resonate with middle‑income consumers even as they face budget constraints.
Balance‑sheet and cash‑generation strength is another key benefit which enables ongoing dividends, potential buybacks, and self‑funded growth without taking on outsized debt. For an investor seeking a blend of moderate current income, visible growth, and a business model that is straightforward to understand, these shares offer an attractive combination.
TEXAS ROADHOUSE INC. (Symbol TXRH on Nasdaq; texasroadhouse.com) is a full-service, casual-dining restaurant chain with 816 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of three banners—Texas Roadhouse (744 locations), sports restaurant Bubba’s 33 (56), and Jaggers (16).
Texas Roadhouse has added a high-profile member to its board of directors. The company has appointed Lisa Ingram, CEO of White Castle, to its board.
White Castle is an American regional restaurant chain with about 340 locations across 14 states, with its greatest presence in the Midwest and New York metropolitan area. It was founded in 1921, in Wichita, Kansas. White Castle is known for its small, square hamburgers—commonly referred to as “sliders”—sold at low prices.
Known as the “Slider Queen,” Ingram has led White Castle since 2015 and is the fourth-generation family member to lead the iconic 105-year-old brand.
Ingram brings extensive restaurant industry leadership and board experience across multiple organizations. Bringing in a sitting CEO from another established restaurant chain should add perspective on store operations, menu strategy, and franchise or company owned models.
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Texas Roadhouse aims to tap into the latest growth trends
Texas Roadhouse’s profits continue to be held back by historically high beef prices. In fact, in the 2025 fourth quarter, its profit margins decreased 309 basis points to 13.9%. More than 50% of Texas Roadhouse’s offerings involve beef.
In response, the company implemented a 1.9% menu price increase at the beginning of the 2026 second quarter to offset this inflation.
As well, it will aim to tap more into beverages, which remain a fast-growing category. Texas Roadhouse intends to play to that demand with offerings such as mocktails and dirty sodas. The chain is also pushing its $5 everyday value offering for beer and Margaritas.
In addition, the chain completed the rollout of its digital kitchen in 2025 and upgraded its guest management systems. It will also expand its handheld tablet test for servers this year.
In the quarter ended December 30, 2025, overall sales rose 3.1%, to $1.48 billion from $1.44 billion a year earlier. That’s partly because Texas Roadhouse opened nine restaurants and one franchise location. On a comparable basis, sales improved 4.2% at the company-owned outlets. Texas Roadhouse made $84.6 million, or $1.28 a share, in the quarter. That was down 26.9% from $115.8 million, or $1.73, a year earlier. That drop is due to higher costs for food and beverages, especially beef, as well as labour. An additional week in the year-earlier quarter also hurt earnings.
During the pandemic, Texas Roadhouse successfully expanded its takeout, pick-up and delivery business. Its own mobile ordering app has also encouraged repeat business. The addition of new delivery channels and digital capabilities puts Texas Roadhouse—with its winning formula of moderately priced but high-quality food—in position to move even higher in the next few years. The company also raised your quarterly dividend by 10.8% with the March 2026 payment, to $0.75 from $0.68. The new annual rate of $3.00 yields 1.7%.
Recommendation in Power Growth Investor: Texas Roadhouse Inc. is a buy.
