Texas Roadhouse Inc. (NASDAQ: TXRH) shares fell more than 1% intra-day Thursday after the restaurant chain reported fourth-quarter results that fell short of analyst expectations.
The company posted diluted earnings per share of $1.28, below the consensus estimate of $1.52. Revenue totaled $1.48 billion, slightly under the projected $1.5 billion.
Comparable sales at company-owned restaurants increased 4.2%, and average weekly sales reached $160,021. However, restaurant margins contracted by 309 basis points to 13.9%, reflecting 9.5% commodity inflation and higher labor expenses.
Looking ahead to 2026, Texas Roadhouse expects store week growth of 5% to 6%. Comparable sales in the first seven weeks of the year rose 8.2%. The company plans to implement a menu price increase of approximately 1.9% in early April to offset ongoing commodity inflation of roughly 7%.
