Texas Roadhouse reported strong early performance from recently opened restaurants during the second quarter of 2026, with locations open for less than six months generating average weekly sales of $180,822, up 10.4% from $163,767 a year earlier.
Those newer Texas Roadhouse locations grew faster than the company’s mature comparable restaurants, which generated average weekly sales of $183,982, up 6.1%. Restaurants included in the company’s average unit volume category generated $155,639 per week, up 7.7%.
The performance highlights the productivity of newly developed Texas Roadhouse restaurants as the company continues to expand its footprint. Texas Roadhouse ended the quarter with 832 restaurants system-wide, up 35 from 797 a year earlier. The total included 732 company-operated restaurants and 100 franchise restaurants.
Among company-operated restaurants, Texas Roadhouse had 662 locations, up from 634, while Bubba’s 33 expanded to 59 locations from 52 and Jaggers increased to 11 from nine. The franchise system included 31 domestic Texas Roadhouse locations, 62 international Texas Roadhouse locations, and seven Jaggers restaurants.
During the quarter, the company opened five company-operated Texas Roadhouse restaurants, three Bubba’s 33 locations and one Jaggers. Including franchise activity, 10 restaurants opened during the 13-week period and 16 opened during the first half of 2026.
Overall comparable restaurant sales increased 6.2% during Q2, while store weeks increased 5%. Average weekly sales across company restaurants reached $177,252, including $25,369 from to-go sales, compared with $167,350 and $22,243, respectively, a year earlier.
Total quarterly revenue increased 11.1% to approximately $1.68 billion from $1.51 billion. Restaurant margin dollars increased 6.9% to $275.1 million, although restaurant margin declined 66 basis points to 16.4% as commodity inflation reached 7% and wage and other labor inflation was 3.9%.
The company reported net income of $121.9 million, down 1.7%, while diluted EPS declined slightly to $1.85 from $1.86. For the first half, net income increased 3.2% to $245.4 million and diluted EPS increased 4.2% to $3.72.
Texas Roadhouse generated $439.2 million in operating cash flow during the first half. Capital deployment included $178.8 million of capital expenditures, $71.8 million of franchise acquisitions, $98.7 million of dividends and $70.8 million of share repurchases.
Early third-quarter trends also remained positive, with comparable restaurant sales increasing 6.2% during the first five weeks. Management continues to expect store-week growth of 5% to 6% and approximately $400 million of capital expenditures for 2026.
KEY QUOTES:
“We are excited about the momentum in our business this quarter as continued strong traffic trends drove record average weekly sales. These results are a testament to the hard work, passion, and ownership mentality of our operators.”
“Looking ahead, we continue to expect meaningful growth opportunities across all three of our brands. With a strong development pipeline, healthy balance sheet, and our disciplined capital allocation approach, we remain focused on expanding our footprint.”
Jerry Morgan, CEO of Texas Roadhouse
