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Call sheet · Q2'26

Texas Roadhouse (TXRH)

Q2'26 earnings call · held August 6, 2026 · compared with the Q1'26 call · management-credibility review
8/12
Disclosure score
1 medium, 3 low flags
Financial quality
Bottom line
Revenue grew 11.1% but diluted EPS declined 0.7%, with G&A rising faster than sales. That cost bridge is the key follow-up. Annual commodity guidance improved even as the quarterly cadence changed. International openings reconcile: one completed in Q2 plus up to five remaining matches the earlier six remaining. Compare cash flows on matching seasonal periods before calling the sequential decline a quality problem.

The 30-second version

  • Sales grew, but G&A outpaced revenue
  • The commodity outlook improved, with a different quarterly pattern
  • The international opening count did not show a one-unit cut

What changed this quarter

MetricQ1'26Q2'26Change
Revenue growth y/y+12.8%+11.1%Deceleration of ~170 bps
Diluted EPS$1.87, +9.6% y/y$1.85, -0.7% y/ySwing from growth to decline
Comparable sales / traffic+7.1% comp / +4.5% traffic+6.2% comp / +3.0% trafficDeceleration in both comp and traffic
Restaurant margin dollar growth+10.5% to $264M+6.9% to $275MYoY growth slowed 3.6 percentage points; dollars increased
Restaurant margin % (y/y bps)-36 bps to 16.3%-66 bps to 16.4%YoY decline widened, while the rate increased 10 basis points sequentially
G&A $ growth / % of revenue+8.7%, 3.7% of revenue+15.4%, 4.3% of revenueYoY growth rose 6.7 points and exceeded revenue growth
Cash flow from operations$259M$180MDown $79M sequentially; seasonality and working-capital bridge needed
Cash balance$215M$202M-$13M sequential
FY commodity inflation guidance6%-7%~5%Guidance cut again, favorable
FY tax rate guidance14%-15%~14%Cut, mechanical EPS tailwind

Accountability tracked

10 new promises made1 narrative shift flagged7 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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