Texas Roadhouse Files Q2 2026 10-Q, Defines Key Performance Metrics
The casual dining operator outlined its core business measurements and operational framework in its latest quarterly filing, while disclosing an 832-restaurant footprint across three concepts.
Restaurant Footprint Reaches 832 Locations
Texas Roadhouse, Inc. reported operating 832 restaurants across 49 states, one U.S. territory, and ten foreign countries as of June 30, 2026, according to its latest quarterly filing. The system comprises 732 company restaurants—including 712 wholly-owned and 20 majority-owned locations—alongside 100 franchise restaurants (10-Q filing, 2026-08-07).
The company portfolio spans three concepts: 662 Texas Roadhouse restaurants, 59 Bubba's 33 locations, and 11 Jaggers restaurants among company-operated units. The franchise base includes 31 domestic Texas Roadhouse restaurants, 62 international Texas Roadhouse locations, and seven Jaggers restaurants across domestic and international markets (10-Q filing, 2026-08-07).
Performance Measurement Framework
The filing provides detailed definitions of the metrics Texas Roadhouse uses to evaluate operational performance. The company defines comparable restaurant sales as changes in sales for all company restaurants open for a full 18 months before the measurement period, excluding any permanently closed locations. The metric can be influenced by guest traffic counts or per person average check amounts, which are affected by menu pricing, product mix, and the balance between dine-in and to-go sales (10-Q filing, 2026-08-07).
Average unit volume, another key measure, represents average quarterly, year-to-date, or annual restaurant sales for Texas Roadhouse and Bubba's 33 locations open for at least six months before the period measured. The company noted that "historically, average unit volume growth is less than comparable restaurant sales growth which indicates that newer restaurants are operating with sales growth levels lower than the company average" (10-Q filing, 2026-08-07).
Restaurant Margin Calculation
Texas Roadhouse emphasized its use of restaurant margin, a non-GAAP measure it describes as "widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis" (10-Q filing, 2026-08-07).
The calculation excludes pre-opening expenses, general and administrative costs, depreciation and amortization, and impairment and closure expenses. The company justifies these exclusions by noting that pre-opening expenses "occur at irregular intervals," while depreciation represents "a non-cash charge for the investment in our restaurants" (10-Q filing, 2026-08-07).
Cost Structure and Operational Details
The filing breaks down major cost categories, noting that approximately half of food and beverage costs relate to beef. Restaurant labor expenses exclude profit-sharing incentive compensation for managing partners and market partners, which are instead classified under restaurant other operating expenses (10-Q filing, 2026-08-07).
Texas Roadhouse maintains contractual arrangements granting rights to acquire equity interests in 18 of the 20 majority-owned company restaurants and 32 of 37 systemwide domestic franchise restaurants (10-Q filing, 2026-08-07).
According to MarginX data, the company has a cash dividend of $0.75 scheduled for September 1, 2026. Recent insider activity shows CFO Keith Humpich exercised options for 2,114 shares on two separate occasions, with 636 shares withheld for taxes.
Forward-Looking Statements
The filing contains standard cautionary language regarding forward-looking statements, directing investors to review risk factors in the company's annual Form 10-K for the fiscal year ended December 30, 2025 (10-Q filing, 2026-08-07).
This article was generated by MarginX from the 10-Q filing on 2026-08-07. It is not investment advice.