Texas Roadhouse Inc. Common Stock (TXRH)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-and-Graham-minded investor, I look first for a business that earns good returns on capital and sells at a sensible price. Texas Roadhouse runs casual-dining steakhouses and related concepts, and it has clearly grown: in fiscal 2025, the year ended 2025-12-30, revenue was $5.9B versus $5.4B in fiscal 2024, the year ended 2024-12-31. But the bottom line has softened: fiscal 2025 net income was $414.3M and diluted EPS $6.10, down from $444.3M and $6.47 in fiscal 2024. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.7B, net income $124.5M, and diluted EPS $1.85, versus revenue $1.5B, net income $126.7M, and EPS $1.86 in fiscal Q2 2025, the quarter ended 2025-07-01. That is a growth engine hitting a profit pause. FairStock’s calculations from the 2026-10-13 close show a P/E of 25.95, P/B of 6.93, ROE of 27.71%, and FCF yield of 3.8%; the Graham Number is only $57.80, leaving a margin of safety of -180.59%. The Altman Z-Score of 4.09 and Piotroski F-Score of 6/9 suggest reasonable financial footing, and FairStock labels it a FAST GROWER based on five-year growth. Still, at $162.18, the price already assumes a lot. I would want evidence that recent profit weakness is temporary before calling this a value opportunity.

In plain English: Texas Roadhouse runs casual dining steakhouses and related restaurants. Sales have been growing, but profits have slipped recently, and the company carries a moderate amount of debt. At the recent price, the shares look expensive compared with earnings and net assets, so they appear priced for growth rather than as a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-07-01) · FY2025 10-K (period ended 2025-12-30) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-26)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer