Texas Roadhouse said on Thursday that third-quarter earnings were $1.36 a share on a GAAP basis, $0.13 worse than expected, on revenue of $1.57B against $1.62B expected. Chief Executive Jerry Morgan said traffic softened late in the quarter after strong momentum earlier on, though the company's strategic priorities remain unchanged.

The timing matters because management has just set its 2027 outlook. It pairs positive comparable restaurant sales growth with wage and other labor inflation of about 3.0% and commodity inflation of about 4.0%. Both are lower than the 2026 assumptions of 3.5% to 4.0% for wages and about 5.0% for commodities. Lower costs only help if sales hold up, and the slowdown Morgan described is the main risk to that.

For 2026, management reiterated its call for positive comparable sales growth, so the softer traffic has not yet changed guidance. It expects store week growth, its measure of expansion, of 5.0% to 5.5% this year and 5.0% to 6.0% next, with capital spending of about $440m and $425m.

The board declared a quarterly cash dividend of $0.75 per share, payable December 29 to shareholders of record as of December 1.

© Raydn · raydn.us