By now, you should have access to our earnings release for the second quarter ending June 30th, 2026. We refer all of you to our earnings release and our recent filings with the SEC. If applicable, reconciliations of the non-GAAP measures to the GAAP information can be found in our earnings release. We're excited with our second quarter results as revenue approached $1.7 billion.
We continued our top-line momentum with same-store sales increasing 6.2%, including 3% traffic growth. Each of our brands is at a different point in their journey, I want to take some time to talk about the potential growth each brand has going forward. We are confident in our operators' ability to continue driving sales through traffic growth. The sales volume and consistent growth that our restaurants have delivered over the long term are a testament to the strength of the brand and the commitment of the best operators in the industry.
With the momentum in our existing locations and a full pipeline of sites under development, the future continues to be incredibly bright for Texas Roadhouse. The remainder of this year's growth of the company side will be focused in our existing markets. Based on recently completed discussions with our operators, we will take a menu price increase of 1% at the beginning of the fourth quarter. In the second quarter, we saw tremendous demand on Mother's Day and Father's Day, which, along with Valentine's Day, are the three legs of what we call our Triple Crown.
What went well
- Revenue approached $1.7 billion and grew 11.1%, with same-store sales up 6.2% (3.0% traffic growth and a 3.2% higher average check), and second-quarter average weekly sales exceeded $175,000 for the first time in the company's 33-year history.
- Restaurant margin dollars increased 6.9% to $275 million and margin dollars per store week rose 1.9% to over $29,000, while labor improved 40 basis points to 32.5% of sales and other operating costs were 28 basis points better, aided by a $1.1 million net insurance benefit.
- The company opened nine restaurants (including its 60th Bubba's 33, its first in Iowa), remained on track for roughly 35 company openings, and saw 90% of restaurants set daily sales records on one of its 'Triple Crown' holidays (Valentine's Day, Mother's Day, Father's Day).
- Management reduced full-year 2026 commodity inflation guidance from 6%-7% to approximately 5% and lowered the full-year income tax rate guidance to approximately 14%, with third-quarter-to-date comparable sales up 6.2%.
What went wrong
- Diluted earnings per share decreased 0.7% to $1.85 as margin pressure persisted.
- Restaurant margin as a percentage of sales declined 66 basis points to 16.4% year-over-year.
- Food and beverage costs rose 136 basis points to 35.4% of sales on 7% commodity inflation.
- G&A dollars increased 15.4% to 4.3% of revenue and depreciation expense rose 15%, and management estimated an approximately 75 basis point negative impact to fourth-quarter same-store sales from holiday calendar shifts (Halloween moving to a Saturday and Christmas to a Friday).
More on Texas Roadhouse, Inc.
Reported 2026-08-06 · figures from the Texas Roadhouse, Inc. Q2 2026 earnings call.