Texas Roadhouse Reports 9.5% Revenue Growth

The restaurant chain posted higher third-quarter sales and earnings and declared a quarterly cash dividend of $0.75 per share.

Updated on Nov. 5, 2026 in Corporate Finance

Texas Roadhouse Reports 9.5% Revenue Growth

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Texas Roadhouse, Inc. reported financial results for the 13 weeks ended September 29, 2026, with total revenue of $1,573,074 thousand, up 9.5% from the prior year. Diluted earnings per share rose 8.6% to $1.36, and comparable restaurant sales increased 4.3%.

Why it matters

The results reflect strong restaurant margin growth, with margin dollars rising 11.9% to $228.6 million, alongside continued expansion through new company and franchise restaurant openings. The board also approved a $0.75 quarterly dividend, signaling confidence in ongoing cash generation.

Restaurant margin as a share of restaurant and other sales rose 30 basis points to 14.6% for the quarter, while cash from operating activities reached $146.7 million. Management expects total capital expenditures of approximately $425 million in 2027, a figure not yet tied to specific projects in the filing.

The players

Texas Roadhouse, Inc.

A Louisville, Kentucky-based casual dining chain known for its steakhouse-style menu and a major operator of company and franchise restaurants across the United States.

The details

Five company restaurants and three franchise restaurants opened during the quarter, and the company implemented a menu price increase of approximately 1.0% at the start of the fourth quarter. For the first five weeks of the fourth quarter, comparable restaurant sales at company restaurants increased 1.5% compared with 2025.

September 29, 2026: End of the 13- and 39-week reporting periods
November 4, 2026: Board approved the quarterly cash dividend of $0.75 per share
November 5, 2026: Earnings announced and conference call held
December 1, 2026: Shareholder of record date for the dividend
December 29, 2026: Dividend scheduled for distribution

Market Dynamics

The quarter's 4.3% comparable sales growth and 30 basis point margin gain are measured against the company's own prior-year figures, which shows the sustainability of its pricing-led growth will depend on traffic trends. The nine-month margin decline of 24 basis points suggests cost pressures earlier in the year that the third-quarter gain has only partly offset.

Shareholders of record as of December 1, 2026, will receive the $0.75 per share dividend on December 29, 2026. Investors tracking restaurant stocks can use the reported margin and comparable-sales figures to compare this quarter's performance against peers.

The takeaway

Investors should weigh strong top-line growth against the nine-month margin decline, since sustained pricing gains will need to keep outpacing cost pressures. Monitoring comparable sales and restaurant margin in upcoming reports will show whether the third-quarter improvement holds.

What happens next

Texas Roadhouse's 2027 outlook and capital expenditure plans will be updated in future earnings reports, and the $0.75 dividend is scheduled for payment on December 29, 2026.