Texas Roadhouse, Inc.
Texas Roadhouse, Inc. is a U.S.-based restaurant company centered on full-service casual dining. It operates three concepts—Texas Roadhouse, Bubba’s 33, and Jaggers—through company-owned restaurants, franchised locations, and related retail initiatives across the United States and select international markets.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueFull-service casual dining steakhouses serving steaks, ribs, chicken, seafood, and sides.
Casual dining restaurants offering burgers, pizza, wings, appetizers, and drinks.
Fast-casual restaurants focused on burgers, chicken sandwiches, salads, and shakes.
Domestic and international franchised restaurants under the company’s concepts.
Brand-related retail and other ancillary initiatives outside restaurant sales.
Products
Reported · share of revenue- Food and Beverage99.5 %
- Franchise Royalty0.5 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
The company serves consumers seeking moderately priced, sit-down meals with a strong value proposition and a family-friendly dining experience. Its customer base spans broad casual-dining guests, local communities around each restaurant, and diners who prefer steaks, burgers, and other made-to-order menu items. Franchisees and development partners are also important counterparties for concept expansion outside company-operated restaurants.
Guests buying sit-down meals at Texas Roadhouse and Bubba’s 33 for value, service, and atmosphere.
Guests choosing Jaggers for quicker service, drive-thru, carry-out, and made-to-order food.
Domestic and international partners that buy development rights and operate branded restaurants.
Consumers purchasing branded retail items tied to the company’s restaurant concepts.
Strategy
The company’s strategy is to expand its restaurant base in attractive domestic and international markets while preserving the brand’s value-and-service positioning. It also seeks to grow through franchised development, acquisition of domestic franchise locations, and disciplined capital allocation to new stores and restaurant remodels.
Growth depends on adding profitable locations in markets with strong demand and suitable sites.
Buying franchise locations can increase company-operated scale and control over economics.
Restaurant margin is the key operating measure used to evaluate performance and capital decisions.
Geography
Texas Roadhouse operates primarily in the United States, with restaurants in 49 states and one U.S. territory. The company also has franchised restaurants in ten foreign countries, giving it a small but meaningful international footprint alongside its domestic base.
Risks
The business is exposed to intense restaurant competition, site-selection risk, labor availability, and changing consumer preferences. Growth also depends on opening new restaurants on schedule and on maintaining brand reputation, food quality, and guest traffic across a large, dispersed store base.
- Restaurant expansion execution riskImpact: HighLikelihood: Medium
Growth depends on opening profitable restaurants on time and in the right locations.
Exposure - Intense industry competitionImpact: HighLikelihood: Medium
Guests can switch to other casual dining, fast-casual, delivery, or grocery options.
Exposure - Labor and human capital pressureImpact: MediumLikelihood: Medium
Restaurants require large frontline staffing and service quality depends on retention and recruiting.
Exposure - Food quality, safety, and litigation riskImpact: MediumLikelihood: Medium
Any food-related incident or lawsuit can damage guest trust and create legal costs.
Exposure - Cybersecurity and vendor disruptionImpact: MediumLikelihood: Medium
Digital systems and third-party vendors support operations and guest experience.
Exposure
Accounting
Judgemental itemsEach restaurant is tested at the asset-group level using estimated undiscounted cash flows.
Impact: Can create impairment charges for underperforming or closed locations
Annual and trigger-based testing depends on management’s fair value assumptions.
Impact: Could materially affect earnings if brand or segment value declines
Restaurant leases and lease guarantees affect balance sheet obligations and contingent liabilities.
Impact: Impacts occupancy-related assets, liabilities, and disclosures
Restaurant closures, relocations, and sales of closed assets require judgment in expense recognition.
Impact: Can cause volatility in operating results
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Last updated: 24/09/2026