What Texas Roadhouse, Inc. told the SEC could break it.

Texas Roadhouse's margins are pressured by food commodity inflation — driven notably by higher beef costs (6.1% commodity inflation in 2025 pushing food/beverage costs to 35.0% of sales); for 2026 it expects ~7% commodity inflation with only ~45% of forecasted costs locked and the remainder at floating market prices.

“The increase was primarily driven by commodity inflation of 6.1% in 2025, due to higher beef costs, and shifts within the menu, partially offset by the benefit of a higher guest check. In 2026, we expect commodity inflation of approximately 7% for the year with prices locked for approximately 45% of our forecasted costs and the remainder subject to floating market prices.”

Texas Roadhouse faces wage and labor-cost inflation (labor inflation of 3.7% in 2025; labor 33.3% of sales) and operates many restaurants in states/municipalities where minimum/tipped wages exceed federal levels; further minimum-wage legislation and labor-pool shortages could raise costs and reduce service levels and guest traffic.

“We have many restaurants located in states or municipalities where the minimum and/or tipped wage is greater than the federal minimum and/or tipped wage. We anticipate that additional legislation increasing minimum and/or tipped wage standards will be enacted in future periods either federally or in state and local jurisdictions.”

Approximately 21% of Texas Roadhouse's company restaurants are in Texas (101) and Florida (50), making it sensitive to those states' economic trends and particularly susceptible to regional adverse events such as hurricanes, tornados and other natural disasters.

“Approximately 21% of our company restaurants are located in Texas and Florida and, as a result, we are sensitive to economic and other trends and developments in those states. As of December 30, 2025, we operated a total of 101 company restaurants in Texas and 50 company restaurants in Florida.”