Texas Roadhouse’s third quarter results were met with a negative market reaction, as revenue outpaced Wall Street expectations but earnings per share fell short. Management attributed the strong sales growth to higher guest traffic and a robust consumer response to menu items, particularly steaks and larger entrees. However, rising beef costs and ongoing commodity inflation pressured margins, with CEO Jerry Morgan noting, “Inflation in the third quarter was above our expectation due to higher-than-anticipated beef prices in the back half of the quarter.” The company also highlighted continued investments in technology and expansion across all three brands, but acknowledged the margin headwinds from commodity and labor expenses.
A number of stocks jumped in the afternoon session after investors continued to pile into value-oriented names amid growing valuation concerns. This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced.
Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over.
The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.
Risk-off sentiment dominated Wall Street on Friday, with selling pressure in AI-linked names intensifying and pushing technology stocks toward their worst week since April.
Restaurant company Texas Roadhouse (NASDAQ:TXRH) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.8% year on year to $1.44 billion. Its GAAP profit of $1.25 per share was 2.9% below analysts’ consensus estimates.
Restaurant company Texas Roadhouse (NASDAQ:TXRH) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.8% year on year to $1.44 billion. Its GAAP profit of $1.25 per share was 3% below analysts’ consensus estimates.
After a brief and cautious rebound on Wednesday, risk-off sentiment returned sharply on Thursday, with AI-linked stocks leading a broad selloff across Wall Street and renewed pressure hitting crypto markets.
Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders.
Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
From tech titans and international hotel brands to down-home Texas fare and online car shopping, the matchups run from familiar to delightfully unexpected -- plus plenty of banter.
Over the last six months, Texas Roadhouse’s shares have sunk to $160, producing a disappointing 5.9% loss - a stark contrast to the S&P 500’s 16.8% gain. This might have investors contemplating their next move.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
US restaurant spending up 3.7% in August, driven by return to both chain and independent establishments. Income levels and regional markets boost growth.
