While many restaurant peers have endured volatile traffic and sales trends over recent years, inflation and macro pressures tossed in, Texas Roadhouse has been stable, to put it lightly. The brand’s 4.2 percent same-store sales result in Q4 (including 2.8 percent traffic and 2.3 percent check), if you strip out 2020, gave it 60 consecutive quarters of comps growth. That’s 15 years stretching to 2010—the year the iPad came out.
CEO Jerry Morgan, who will reach his five-year milestone as top executive in March (he’s been with the chain since 1997), was asked Thursday during Texas Roadhouse’s earnings if he feels the brand’s growth is structural or evidence of consumers trading between categories in search of value. His answer? It’s hard to predict.
Yet, given how Texas Roadhouse operates, the answer might not matter. The brand, he said, opens its doors and serves guests and communities every day. “And I think the guest has to make a choice,” Morgan said. “And their choice is, where do they get quality food, where do they get great value, and where do they get hospitality at a high level?”
MORE: How Texas Roadhouse CEO Jerry Morgan is Leading a Legendary Legacy
Through this decade-and-a-half sales run and going back to Morgan’s tenure as managing partner of the company’s first restaurant in Texas, which was a top-five system performer, he feels that’s an arena they’ve continued to win. Do so over 15 years and you develop a reputation for providing service that resonates with the consumer, regardless of economic climate. “And they want to spend money,” Morgan said. “But they want to spend money where they’re getting a product with value. And I believe that’s where we’ve settled in nicely.”
Speaking of “settling in,” Texas Roadhouse turned 33 years old following a calendar stocked with milestones. It grew revenue to $5.9 billion as all three of its chains—Bubba’s 33 and Jaggers alongside the steakhouse—delivered positive sales and traffic expansion. Bubba’s comps lifted 1 percent in Q4 (7.7 percent two-year stack). Jaggers, at 16 locations, doesn’t report same-store sales but did see average weekly sales come in at nearly $73,000.
That number at company locations for Texas Roadhouse was $160,021, $22,099 of which flowed from to-go sales. This time a year ago, Texas Roadhouse units made $153,867 ($20,067 in to-go). The full-year 2025 figure was $161,918 ($21,973 from to-go). That was above 2024’s $155,285 ($19,940).
Texas Roadhouse’s average-unit volumes are now north of $8.4 million. AUVs were $5.55 million in 2019. Further back, Texas Roadhouse stores were at $4.805 million in 2016.
Bubba’s locations in 2025 generated roughly $122,000 per week.
Texas Roadhouse’s 4.2 percent Q4 comp, by month, unpacked as 6.1 percent, 4.8 percent, and 2.2 percent in October, November, and December, respectively. The latter dealing with weather that dampened much of the country. Notably, same-store sales for the first seven weeks of Q1 increased 8.2 percent, with restaurants averaging about $170,000 per week.
The company in 2025 opened its 800th systemwide restaurant. The year included 20 corporate domestic openings of Texas Roadhouse, seven of Bubba’s, and one Jaggers. Another three franchises opened of Texas Roadhouse and a Jaggers.
It ended Q4 with 648 company Texas Roadhouses, 56 Bubba’s (up from 49, year-over-year), and 10 Jaggers, to go along with 36 U.S. Texas Roadhouse franchises, 60 more international, five franchised Jaggers, and an international store of the fast casual for a total of 816 restaurants—32 more than 2024’s 784.
The company-owned base grew by 48 overall after Texas Roadhouse acquired 20 franchise stores as well.
It plans to open about 35 company stores in 2026. Franchisees will tack on another 10 (six international Texas Roadhouse and four domestic Jaggers).
A vision that began on a napkin for Texas Roadhouse’s late founder, Kent Taylor, sure has come a long way, Morgan said, adding there are 100,000 “Roadies” across the brands today. He then counted to three and gave a “yeehaw” before opening investor Q&A.
More than 70 percent of restaurants last year set daily and weekly sales records, Morgan explained. The company also completed the rollout of its digital kitchen and upgraded guest management systems. It solidified its HQ in Louisville by purchasing the company’s two support center buildings, which it did so for $25 million in August.
Texas Roadhouse raised north of $30 million for local schools and nonprofits through “Dine to Donate” and served 1.2 million meals to veterans and active military for Veteran’s Day. It also provided more than $1.1 million to the American Tinnitus Association following the company’s fifth annual fundraiser in honor of Taylor, who suffered from the condition.
In typical Texas Roadhouse speak, Morgan said 2026 won’t see any major evolutions. Even with commodity inflation sticking as a headwind, namely with beef, the brand will focus on service, value, and hospitality. Restaurant margin dollars in Q4 decreased 15.6 percent to $204.8 million from $242.6 million in the prior year. Margin, as a percentage of restaurant and other sales, slid 309 basis points to 13.9 percent thanks to commodity inflation of 9.5 percent and wage and other labor inflation of 2.9 percent.
Despite pressures, chief accounting and financial services officer Keith Humpich said, the company reported the second-highest restaurant margin dollars, income from operations and earnings per share in its history. Texas Roadhouse ended 2025 with more than $130 million of cash. Cash-flow from operations for the year was over $730 million. That enabled it to fund $388 million of CapEx and acquire those 20 franchise units for $108 million. It also returned $180 million to shareholders through dividends and another $150 million in share repurchases.
“While commodity inflation will continue to be a headwind this year, our operators remain committed to driving growth over the long term by providing a legendary experience to every guest,” Morgan said.
The brand is guiding commodity inflation of roughly 7 percent in 2026. It expects the wage and labor side to rest between 3–4 percent.
Texas Roadhouse recently completed menu pricing calls with operators—a process it undertakes with managing parters as part of its model where store-level leaders have a stake in the business and a say in decisions. Morgan, as noted, came from that world and was the chain’s Managing Partner of the Year in 2001 before being promoted to market partner later that calendar. He became a Regional Market Partner in 2015 and company president in 2020.
Through conversations, Texas Roadhouse landed on a 1.9 percent menu price increase rolling on in early Q2. It had 3.1 percent pricing in Q4 and will carry the same in Q1. That uptick will lift Texas Roadhouse to 3.6 percent in Q2 and Q3 before it reevaluates Q4.
The brand has done its best to stay cautious on the line through inflation. By this chart below from TD Cowen, which includes Chili’s, Texas Roadhouse’s value perception has held.
“We continue to try to be very conservative,” Morgan said. “We believe that the full-service dining segment—we are still well underneath that. So we continue to have great conversations with our operators. We look at it from the lens of our guests and our business and our shareholders and try to find a balance. We also know beef is a challenge and we will continue to look at it.”
“But we focus on a great experience,” he added, “value in our menu that’s built in throughout everything that we have. And it’s been a great strategy. And I believe we don’t skimp on any of our portions. We really focus on ‘nothing has changed.’ All we try to do is get a little bit better for our guest experience.”
There’s been an ongoing beverage focus, too, with all stores offering some combination of mocktails, dirty sodas, and a $5 all-day, everyday beverage special. Texas Roadhouse, Morgan said, was built on ice cold beer and a legendary margarita. Having a $5 10-ounce version of the latter has “been really, really popular.”
On the tech front, in addition to the digital kitchen and upgraded guest management systems, which completed in late 2025, Texas Roadhouse has been testing, pausing, and restarting handheld tablets. After rewriting software after a 40-store pilot, the brand plans to expand the program in 2026 and make a “couple of more tweaks.” Ultimately, servers will be able to input guest orders at the table. Morgan said this, naturally, speeds up service and improves accuracy. But there are learnings to come.
The digital kitchen itself has led to calmer, quieter environments cooks are enjoying, Morgan said. KDS has helped with to-go execution but has not inspired Texas Roadhouse to consider delivery—a category it remains steadfastly out of.
The guest management software allows operators to manage floor plans with the number of consumers on the wait list and move diners around, if they don’t show, for instance. Overall, it’s powered Texas Roadhouse to get faster in how table turns work, work on how guests get on the list, get set, and how it accurately quotes customers when restaurants are on longer waits.
It was pressured tested—and passed the heat—over Valentine’s Day, Morgan said.
“I think it all contributes to the ability to handle that kind of volume,” he said of technology. “We believe that there are so many things … little things that all add up to additional success.”
