**Texas Roadhouse Reports Growth and Expands Plans Amid Price Increases**
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In its recent earnings call for the first quarter of the financial year 2026, Texas Roadhouse revealed a series of promising statistics highlighting its growth trajectory. The popular fast-casual steakhouse chain reported an increase in menu prices and unveiled plans for expansion both domestically and internationally.
Starting in the second quarter of 2026, Texas Roadhouse increased its menu prices by 1.9%. This adjustment has resulted in a rise in the average cost of customer transactions, reflecting a positive trend in weekly sales as outlined by Chief Financial Officer Mike Lenihan during the call. He noted that the price increase has contributed significantly to the overall sales performance observed from the first quarter into the beginning of the second.
Lenihan also mentioned that the company’s comparable sales growth was bolstered not only by the price adjustment but also by an increase in customer traffic. The average check size climbed 2.6%, helping to counterbalance the impacts of commodity inflation that have affected many businesses recently.
CEO Jerry Morgan highlighted that the first quarter of 2026 marked a robust same-store sales increase of 7.1%, with an impressive 4.5% growth in customer traffic. The earnings summary revealed a 12.8% rise in revenue, totalling $1.6 billion, alongside an 8.6% increase in operational income, which reached $146.3 million. Restaurant margins also improved by 10.5%, amounting to $264.4 million, showcasing a significant overall improvement compared to the previous quarter.
In contrast, the fourth quarter of 2025 had shown a decline in operating income and restaurant margins. The earnings for that quarter indicated a revenue of $1.5 billion with an increase of only 3.1%. However, operational income had fallen sharply by 30.2%, demonstrating the volatility in the business landscape.
Turning to expansion plans, Morgan disclosed that the chain opened four new Texas Roadhouse restaurants in the first quarter and anticipates up to nine new locations by the end of the second quarter of 2026. This year is expected to see a concentration of openings in the latter half, reinforcing the chain’s commitment to growth.
The earnings call also shed light on Texas Roadhouse’s international ventures, with the opening of its first standalone restaurant in Korea earlier this month. This location, which opened on April 28, 2026, in Seoul, presents an exciting opportunity for the brand to capture a new market. Additionally, Morgan stated that the company anticipates further international expansions, with an expectation of six more Texas Roadhouse locations opening throughout the remainder of the year.
As of March 31, 2026, Texas Roadhouse had 822 locations globally, with 749 exclusively branded as Texas Roadhouse. The restaurant group continually evaluates its growth potential, seeking to add approximately 35 company-owned sites within the year across all brands.
The company is also keen on enhancing its operational capabilities with the introduction of digital kitchen and guest management systems. This move aims to streamline operations amidst rising customer demand for takeout services. Morgan expressed optimism that these digital tools will allow the kitchen staff to handle an increased volume of to-go orders while maintaining the quality of the dine-in experience.
The initial feedback on upgraded handheld ordering tablets for servers came out positively, which suggests a potential for further enhancements in customer service. The company plans to expand the testing of these technological innovations in the coming months as it focuses on operational efficiency.
As Texas Roadhouse navigates a landscape of rising prices and changing consumer expectations, its strategic approaches suggest a commitment towards sustainable growth and enhanced dining experiences for its customers. With continued investment in technology and international expansion, Texas Roadhouse appears poised to maintain its upward trajectory in the coming years.