Texas Roadhouse grows revenue but faces shrinking profits in 2025
Texas Roadhouse, Inc. (TXRH) has released its financial results for the fiscal year ending December 30, 2025. The company reported total revenue of $1.48 billion, marking a 3.1% increase from the previous year. Despite growth in sales, operating income and net income both saw significant declines.
The chain expanded its footprint during 2025, opening 28 company-owned restaurants and four franchise locations. In the fourth quarter alone, nine company restaurants and one franchise restaurant began operations.
Comparable restaurant sales showed steady growth, rising by 4.2% in the fourth quarter compared to the same period in 2024. For the full year, this figure reached 4.9%. Weekly sales at company restaurants averaged $160,021, with to-go sales contributing $22,099—up from $153,867 and $20,067 respectively in 2024. Earlier weekly averages for 2025 had been slightly higher, at $161,918 in total sales and $21,973 in to-go sales.
However, profitability took a hit. Operating income dropped by 30.2% to $96.7 million, while net income fell by 26.9% to $84.6 million. Restaurant margins also shrank, declining by 15.6% in dollar terms to $204.8 million and by 309 basis points as a percentage of sales, landing at 13.9%.
Capital spending for the year included $89.2 million in capital expenditures, $13.3 million on franchise acquisitions, $44.9 million in dividends, and $50.0 million on stock repurchases.
The results highlight a mixed picture for Texas Roadhouse in 2025. While revenue and comparable sales grew, lower margins and reduced operating income point to rising costs or other financial pressures. The company continues to expand, including opening new restaurants near me, but its profitability faces challenges moving forward, even for popular chains like Applebees.
