Texas Roadhouse Inc (NASDAQ:TXRH) Reports Mixed Q3 Results with Revenue Beat and EPS Miss

TEXAS ROADHOUSE INC (NASDAQ:TXRH) reported third-quarter financial results that presented investors with a mixed performance picture, characterized by strong top-line growth but disappointing bottom-line results compared to analyst expectations.

Third Quarter Financial Results

The restaurant chain demonstrated robust sales growth during the quarter ended September 30, 2025, though profitability metrics failed to meet Wall Street's projections. The company's revenue performance notably exceeded expectations, while earnings per share fell short of consensus estimates.

• Revenue: $1.44 billion actual versus $1.46 billion estimated (beat by 1.5%)
• EPS: $1.25 actual versus $1.31 estimated (miss by 4.3%)
• Year-over-year sales growth: 12.8%

The revenue beat suggests the company continues to successfully drive customer traffic and maintain pricing power in a competitive casual dining landscape. However, the earnings miss indicates potential pressure from rising operational costs, including labor, food commodities, and other inflationary factors affecting restaurant margins.

Market Reaction and Recent Performance

Trading activity following the earnings release reflected investor disappointment with the profitability shortfall. The stock experienced immediate downward pressure in after-hours trading, continuing a recent trend of modest declines across various time frames.

• After-market performance: -1.23%
• Weekly performance: -0.03%
• Two-week performance: -0.09%
• Monthly performance: -0.04%

The negative price movement, particularly in after-hours trading, suggests investors are focusing more on the earnings miss than the revenue beat. This reaction highlights the market's current sensitivity to profitability metrics in the restaurant sector, where margin compression has become a significant concern amid rising operational costs.

Press Release Highlights

Beyond the core financial metrics, Texas Roadhouse announced several operational and capital allocation developments. The company declared a quarterly cash dividend of $0.68 per share, continuing its tradition of returning capital to shareholders. The press release also detailed the company's ongoing expansion efforts across its three restaurant concepts: Texas Roadhouse, Bubba's 33, and Jaggers. Management's commentary emphasized the company's commitment to maintaining its value proposition while navigating the challenging cost environment that has impacted the broader restaurant industry.

Forward-Looking Expectations

Analyst projections for the coming periods indicate continued growth expectations for the company, though the third-quarter earnings miss may prompt some revisions to future estimates.

• Q4 2025 revenue estimate: $1.53 billion
• Q4 2025 EPS estimate: $1.72
• Full-year 2025 revenue estimate: $6.01 billion
• Full-year 2025 EPS estimate: $6.66

The company did not provide specific forward guidance in the earnings release regarding these metrics, making direct comparison with management's expectations unavailable. Investors will likely monitor whether the cost pressures evident in the third quarter persist into the final quarter of the year and whether the company can implement operational efficiencies to improve profitability.

For detailed historical earnings data and comprehensive analyst estimates, review the earnings and estimates page for Texas Roadhouse.

Disclaimer: This article presents factual information about Texas Roadhouse's financial performance and should not be construed as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.