TacticScale
Consumer Cyclical · Restaurants · TXRH

What Texas Roadhouse Does & How It Makes Money (TXRH)

Updated October 2026 · reflects Texas Roadhouse's latest reported financials

Casual dining restaurant chain known for steaks and ribs. The company earns most of its money from food and drink sales at restaurants it owns and runs.

Texas Roadhouse's story, moat and numbers — in a 3-minute visual book.

Explore Texas Roadhouse on TacticScale →

How Texas Roadhouse makes money

The company earns most of its money from food and drink sales at restaurants it owns and runs. It also franchises restaurants under its brands to other operators.

What Texas Roadhouse does

Texas Roadhouse, Inc. is a casual dining operator founded in 1993 and based in Louisville, Kentucky. It reports three segments: Texas Roadhouse, Bubba's 33, and Others. Its flagship Texas Roadhouse brand serves seasoned, aged steaks, ribs, seafood, chicken, pork chops and pulled pork. Bubba's 33 widens the lineup with burgers, pizza, wings and appetizers, and the company also runs the Jaggers brand. The company operates restaurants in the United States and other countries, and both runs its own locations and franchises them to others. That makes it a business tied to consumer spending on eating out.

Products & services

What is Texas Roadhouse worth?

On an owner-earnings DCF, Texas Roadhouse's most-likely value is about $124 versus a recent price near $162 (23% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$55) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge
Owner-earnings fair value · recent price ≈ $162
Fair value (most likely)
$124
Range
$92–$176
No-growth floor
$55
Price
~$162

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Consumer Cyclical Industry Restaurants HQ United States Ticker TXRH Official site

Related companies

Brinker International (EAT) · Darden Restaurants (DRI) · Shake Shack (SHAK) · Black Rock Coffee Bar (BRCB) · Cracker Barrel Old Country Store (CBRL)

Understand Texas Roadhouse in 3 minutes →