Is the business good?
How good a business is TXRH?
Texas Roadhouse, Inc. earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
27%
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 7.8%
Operating margin · Restaurants median 8.6% · 12 months to Q2 2026
- Cash conversion
- 0.96×
Cash conversion · 0.83× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 0.99% |
| FY2021 | 8.6% |
| FY2022 | 8.0% |
| FY2023 | 7.6% |
| FY2024 | 9.6% |
| FY2025 | 8.1% |
Details›
- Operating margin12 months to Q2 2026
- 7.8%
- Net margin12 months to Q2 2026
- 6.8%
- Free cash flow margin
- 6.5%
- Revenue, trailing twelve months
- $6.23B
- Free cash flow, trailing twelve months
- $406M
- Net income, trailing twelve months
- $422M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.