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All stocks · Consumer Cyclical · Casual Dining Restaurants

Texas Roadhouse TXRH

Texas Roadhouse scores good on business quality (7.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$161.50Oct 10, 2026
Business qualityGood
Next earningsNov 5, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Texas Roadhouse does

    Texas Roadhouse operates sit-down casual dining restaurants, making money by selling food and beverages directly to consumers through its flagship brand.

  2. What it does best

    Texas Roadhouse achieves a gross margin of 64.5%, outperforming peers like CMG at 29.5% due to its specialized supply chain and high-volume store model.

  3. The main risk

    Labor and food cost inflation threaten restaurant-level margins, directly squeezing operating income if menu price increases fail to offset rising input expenses.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at 7.8% while FCF margin hits 38%, showing strong cash conversion despite lower operating margins relative to peers like YUM's 32%.

MoatStrong

The brand commands customer loyalty through its high-volume casual dining concept, landing in the top decile for gross margin at the 91st percentile of its sector.

GrowthSteady

Revenue grew to $6.2 billion, supported by a 9.4% annual growth rate that continues to outpace historical multi-year trends.

Financial healthStrong

With a debt-to-equity ratio of 0.002 and net cash of $132 million, the balance sheet is exceptionally clean. Free cash flow reached $400 million, showing a strengthening financial position.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

5 sold $1.2M outside pre-planned sales.

Our sealed record on TXRH

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TXRH a good business?

Texas Roadhouse scores good on the Cluenex quality check (7.4 of 10), measured against its own industry. Profitability is weak, moat strong, growth steady and financial health strong.

Are insiders buying TXRH?

In the last 90 days of SEC Form 4 filings: 5 sold $1.2M outside pre-planned sales.

When does TXRH report earnings?

Nov 5, 2026, after the close.

For members

See TXRH today

  • Today's verdict on TXRH, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Texas Roadhouse (TXRH)”, https://cluenex.com/stocks/txrh/, data as of Oct 10, 2026.