Texas Roadhouse, Inc.
TXRH Consumer Cyclical Restaurants
Texas Roadhouse, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $5.9 billion, up 9.39% from fiscal 2024. In the quarter to June 2026, revenue grew 11.1%, EPS was flat and free cash flow grew 120.6%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for five.
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Texas Roadhouse, Inc. (TXRH) Altman Z-score
Texas Roadhouse, Inc.'s Altman Z-score for fiscal 2025 is 5.71, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 5.71 | (0.96) |
| FY2024 | 6.67 | 1.19 |
| FY2023 | 5.48 | 0.58 |
| FY2022 | 4.90 | 0.03 |
| FY2021 | 4.87 | 0.98 |
| FY2020 | 3.89 | (0.56) |
| FY2019 | 4.45 | (3.30) |
| FY2018 | 7.75 | 0.37 |
| FY2017 | 7.38 | (0.17) |
| FY2016 | 7.55 | 0.62 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.13) | — | −0.15 | |
| Retained earnings / total assets | 0.41 | — | 0.58 | |
| EBIT / total assets | 0.13 | — | 0.44 | |
| Market value of equity / total liabilities | 5.32 | — | 3.19 | |
| Sales / total assets | 1.66 | — | 1.66 | |
| Altman Z-score | Safe zone | 5.71 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 2.15 | ||
Z and Z″ put Texas Roadhouse, Inc. in different zones: safe zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CAVA CAVA Group, Inc. compare | 8.0× |
| TXRH Texas Roadhouse, Inc. | 5.7× |
| EAT Brinker International, Inc. compare | 4.8× |
| YUMC Yum China compare | 4.0× |
| DPZ Domino's Pizza Inc compare | 3.3× |
| BROS Dutch Bros Inc. compare | 3.0× |
| DRI Darden Restaurants, Inc. compare | 2.6× |
| CAKE The Cheesecake Factory Incorporated compare | 2.3× |
| QSR Restaurant Brands International Inc. compare | 1.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets