Texas Roadhouse Inc (TXRH) Fair Value & Analysis
Consumer Cyclical · US · Market cap $13.0B · ISIN US8826811098
What is Texas Roadhouse Inc really worth?
Texas Roadhouse Inc
TXRH · US
A solid business, but trading 80% above our fair value of $104.89.
Strengths
Risks
For context
Fair value as of: Aug 31, 2026
From 24 valuation models · updated 5 days ago
Share price −9.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($166.89). The favourable scenario is already priced in.
- Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($76.58 to $166.89) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.
How to read this chart
60‑month range $64.87 – $214.28 · fair‑value band $76.58 – $166.89 · the $189.06 price screens above the $104.89 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.
Analysis
Texas Roadhouse Inc (TXRH) currently trades at $189.06, while our model-based Fair Value estimate is $104.89, implying the stock looks roughly 80.2% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of $132.86 per share, and 1 of the 24 models we run sit above the $189.06 price. Bear case: the Asset-Based group reads lowest at $14.89, and 23 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Texas Roadhouse Inc generated revenue of $6.1B at a net margin of 6.9%. Revenue grew 12.8% year over year. It earns a return on equity of 28.9%. Net debt stands at $1.8B. Fundamentals as of Aug 31, 2026
Our scenario range runs from $76.58 (bear case) to $166.89 (bull case); at $189.06, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 3% below its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −53% fair-value upside, at −45%, TXRH screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.36 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: DCF Models ($132.86) versus Asset-Based ($14.89). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 61 · Market factors (momentum, volatility) 64
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It operates through Texas Roadhouse, Bubba's 33, and Others segments.
Full company description
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It operates through Texas Roadhouse, Bubba's 33, and Others segments. The company's restaurants offer seasoned and aged steaks, ribs, seafood, chicken, pork chops, pulled pork, and vegetable plates, as well as an assortment of hamburgers, salads, and sandwiches; and pizza, wings, and various appetizers and dinner entrées. The company also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers brands. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Texas Roadhouse Inc reported revenue of $5.9B in FY2025 versus $3.5B in FY2021, a compound +14.1%/yr. Reported net income was $406M in FY2025, compounding +13.4%/yr from FY2021.
of which total revenue +12.8 % · buybacks/dilution +0.6 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
TXRH screens 80% overvalued. Compare with McDonald's Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Texas Roadhouse (TXRH) Stock Looks Above Fair Value Following Its 129% Five Year Run
- Is Texas Roadhouse (TXRH) Fairly Valued Or Still Undervalued On Its Growth Narrative?
- BJRI or TXRH: Which Is the Better Value Stock Right Now?
- 3 Reasons Growth Investors Will Love Texas Roadhouse (TXRH)
Peer Group
Restaurants · 220 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Restaurants median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Restaurants stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| McDonald's Corporation MCD | $260.06 | $149.03 | −43% |
| Starbucks Corporation SBUX | $107.26 | $35.83 | −67% |
| Chipotle Mexican Grill, Inc CMG | $38.03 | $17.92 | −53% |
| Yum! Brands, Inc YUM | $153.31 | $58.17 | −62% |
| Restaurant Brands International Inc QSR | C$104.50 | C$36.37 | −65% |
| Darden Restaurants, Inc DRI | $218.86 | $173.68 | −21% |
| Yum China Holdings YUMC | $47.18 | $54.27 | +15% |
| Dutch Bros Inc BROS | $51.02 | $12.80 | −75% |
| Domino's Pizza, Inc DPZ | $332.06 | $227.31 | −32% |
| CAVA Group CAVA | $69.47 | $10.69 | −85% |
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