After a relatively quiet end of 2025 by Texas Roadhouse standards, the steakhouse chain is coming out of the gates hot so far in 2026.
Through the first seven weeks of the current quarter, same-store sales are up 8.2%. If that holds, it would be their highest level since the third quarter of 2024.
And that includes the effects of Winter Storm Fern, which kept many consumers from going out for about a week in late January. Executives estimated that the net impact of the bad weather knocked about 1.5% off of its same-store sales thus far in the quarter.
Asked about the apparent step change in traffic to start the year, Texas Roadhouse CEO Jerry Morgan said the chain isn’t necessarily doing anything differently.
“We're continuing to provide a great experience for the guest and we benefited a little bit from some of that,” he said. “It'd be hard to measure exactly what it is. But I just think we're out there hustling.”
Louisville-based Texas Roadhouse has become one of the most consistent performers in the industry with its combination of high-quality food, strong operations and prices that have trailed behind inflation.
That formula delivered another strong year in 2025, as same-store sales increased 4.9% on 2.8% traffic growth. For the fourth quarter, same-store sales rose 4.2%, including 1.9% traffic growth.
Same-store sales slowed to 2.2% in December due to more winter weather. Other restaurant chains reported similar challenges to close out the year.
It was the chain’s 60th consecutive quarter of same-store sales growth, excluding the pandemic, a streak that dates back to 2010.
Total revenues for the year were nearly $5.9 billion.
The chain continues to battle with high beef costs. In the fourth quarter, commodity inflation for Roadhouse was 9.5%, which contributed to a 3-point decline in restaurant-level margins, to 13.9%.
Those beef costs also contributed to a rare drop in restaurant-margin dollars at the chain: They fell 15.6%, to $204.8 million. There was also one less week in the quarter versus last year, which played a role in the decline.
Beef prices are expected to remain elevated for the foreseeable future. The chain is forecasting commodity inflation of 7% for 2026.
It will raise menu prices 1.9% to help offset some of those costs. But its main plan to manage the inflation is simply to keep growing sales.
“In periods like this, we focus on the dollars and growing the top line and that's what flows through, and certainly more dollars can help you leverage labor, can help you leverage other operating [costs],” said Michael Bailen, senior director of investor relations and financial analysis. “We're going to stay true to who we are, and that's really going to be our approach to the business.”
It has made a number of efforts to boost sales, both on the menu and operationally. It has expanded its beverage lineup to include mocktails, dirty sodas and $5 beers and margaritas. Customers are buying less alcohol, but orders of mocktails and soft drinks are up, Bailen said.
It has also worked to improve throughput, installing a digital kitchen system that has enabled restaurants to do more to-go business, and an upgraded waitlist system that is helping them handle higher volumes. The chain is also testing handheld server tablets that are expected to speed order-taking.
And it continues to open more restaurants, including 28 last year and a planned 35 this year across its Texas Roadhouse, Bubba’s 33 and Jaggers brands. The company broke the 800-store mark in 2025 and now has more than 820 restaurants in 49 states and 10 countries.
“For 33 years, our mission has been legendary food and legendary service with a focus on high-level hospitality and value,” Morgan said. “This will remain the same in 2026 and beyond.”
Texas Roadhouse stock was up more than 3% in after-hours trading.
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