Home / Business and Economy / Texas Roadhouse Misses Earnings Amidst High Beef Costs
Texas Roadhouse Misses Earnings Amidst High Beef Costs
20 Feb
Summary
- Q4 revenue of $1.48 billion missed estimates, with EPS dropping 26%.
- Comparable sales grew 4.2% in Q4, a slowdown from previous periods.
- Strong early Q1 2026 comparable sales and steady inflation outlook support stock.
Texas Roadhouse announced fourth-quarter results that fell below Wall Street expectations, largely attributed to elevated beef costs impacting profitability. The company's revenue for the quarter ending December 30, 2025, was $1.48 billion, a 3.1% increase year-over-year, but less than the estimated $1.496 billion. Earnings per share saw a significant 26% annual drop to $1.28, missing the predicted $1.51.
Despite the quarterly shortfall, shares saw a modest gain in after-hours trading. Comparable restaurant sales growth, a key performance indicator, slowed to 4.2% for the fourth quarter, down from previous periods, with a noticeable decline in December. This slowdown may have been influenced by adverse weather and the timing of the Christmas holiday.
Encouragingly, Texas Roadhouse reported that comparable sales surged by 8.2% in the first seven weeks of the first quarter of 2026. Management also reiterated its commodity inflation outlook for 2026 at approximately 7%, providing a degree of stability. The company plans to open 35 company-owned restaurants in 2026 and recently implemented a 1.9% menu price increase in April.
