Texas Roadhouse stands out in casual dining for its ability to generate consistent, traffic-driven comparable sales growth quarter after quarter. This traffic momentum is not the result of aggressive discounting or promotional activity but rather reflects genuine brand strength and a value proposition that resonates with a range of customers.
Beyond the traffic leadership, the firm offers a compelling unit growth runway combined with shareholder-friendly capital allocation. The annualized dividend of $2.72 per share, was increased by 11.5% in 2025 and is supported by a conservative payout ratio.
TEXAS ROADHOUSE (Nasdaq symbol TXRH; texasroadhouse.com) is a full-service, casual-dining restaurant chain with 806 locations spread across 49 U.S. states and 10 foreign countries.
Each of those restaurants operates under one of three banners—Texas Roadhouse (736 locations), sports restaurant Bubba’s 33 (54), and Jaggers (16).
Founded in 1993, the Texas Roadhouse chain offers customers moderately priced, full-service dining. It specializes in handcut steaks cooked over an open grill. Ribs, seafood, chicken, pork chops, pulled pork and vegetable plates are also on the menu, along with hamburgers, salads and sandwiches.
Texas Roadhouse also gives its guests a free unlimited supply of in-shell roasted peanuts and fresh-baked dinner rolls.
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Bubba’s 33 is a family-friendly sports restaurant offering an assortment of wings, sandwiches, pizza and burgers. That includes its signature 33% bacon-grind patty. In addition, the chain offers an extensive selection of draft beer.
Jaggers is a new fast-food concept featuring hamburgers, chicken, milkshakes and salads made from scratch.
Texas Roadhouse’s high brand value facilitates navigation past profitability challenges
In the quarter ended September 30, 2025, overall sales rose 12.8%, to $1.44 billion from $1.27 billion a year earlier. Same-store sales rose 6.1% for company-owned restaurants. Seven company restaurants and two franchise restaurants opened in the quarter.
Texas Roadhouse made $83.2 million, or $1.87 a share, in the quarter. That was down 1.5% from $84.4 million, or $1.26, a year earlier. The company experienced higher costs, especially for beef.
During the pandemic, the company successfully expanded its takeout, pick-up and delivery business. Its own mobile ordering app has also encouraged repeat business. Not only that, new delivery channels and digital capabilities position the company—with its winning formula of moderately priced but high-quality food—to keep expanding as the economy further improves.
With the March 2020 payment, Texas Roadhouse handed investors a 20.0% rise in the quarterly dividend. But it then suspended paying dividends to conserve cash.
However, the company reinstated a quarterly cash dividend of $0.40 per share in June 2021. More recently, Texas Roadhouse announced an 11.5% dividend increase that started April 2025. It brought the quarterly payment to $0.68 a share. The stock now yields 1.5%.
Recommendation in Power Growth Investor: Texas Roadhouse Inc. is a buy.
