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Texas Roadhouse Posts Q3 Sales Beat as Beef Costs Squeeze Profit, Lifts Menu Prices

Management guides to persistent commodity inflation into 2026, prompting measured pricing and efficiency moves.

Overview

  • Revenue rose 12.8% year over year to $1.44 billion, while GAAP EPS of $1.25 missed consensus.
  • Same-store sales increased 6.3% on stronger traffic and a steak-heavy mix that boosted sales but raised food costs.
  • Operating margin declined to 6.7% from 8% a year ago, and adjusted EBITDA of $149.6 million fell short of estimates.
  • A 1.7% menu price increase took effect at the start of Q4 as the company maintains a conservative, local pricing approach.
  • Leaders expect roughly 7% commodity inflation in 2026, advance a near-complete tech rollout to 95% of locations, and continue expansion to 806 restaurants with retail items in 120,000+ outlets.