TEXAS ROADHOUSE, INC., 10-K filed on 2/28/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2024
Feb. 19, 2025
Jun. 25, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Document Transition Report false    
Securities Act File Number 000-50972    
Entity Registrant Name Texas Roadhouse, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-1083890    
Entity Address, Address Line One 6040 Dutchmans Lane    
Entity Address, City or Town Louisville    
Entity Address, State or Province KY    
Entity Address, Postal Zip Code 40205    
City Area Code 502    
Local Phone Number 426-9984    
Title of 12(b) Security Common Stock    
Trading Symbol TXRH    
Security Exchange Name NASDAQ    
Entity Current Reporting Status Yes    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 11.4
Entity Common Stock, Shares Outstanding   66,450,642  
Entity Central Index Key 0001289460    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Auditor Name KPMG LLP    
Auditor Firm ID 185    
Auditor Location Louisville, Kentucky    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 26, 2023
Current assets:    
Cash and cash equivalents $ 245,225 $ 104,246
Receivables, net of allowance for doubtful accounts of $7 at December 31, 2024 and $35 at December 26, 2023 193,170 175,474
Inventories, net 40,756 38,320
Prepaid income taxes 0 3,262
Prepaid expenses and other current assets 37,417 35,172
Total current assets 516,568 356,474
Property and equipment, net of accumulated depreciation of $1,223,064 at December 31, 2024 and $1,078,855 at December 26, 2023 1,617,673 1,474,722
Operating lease right-of-use assets, net 769,865 694,014
Goodwill 169,684 169,684
Intangible assets, net of accumulated amortization of $23,147 at December 31, 2024 and $20,929 at December 26, 2023 1,265 3,483
Other assets 115,724 94,999
Total assets 3,190,779 2,793,376
Current liabilities:    
Current portion of operating lease liabilities 28,172 27,411
Accounts payable 144,791 131,638
Deferred revenue-gift cards 401,198 373,913
Accrued wages 101,981 68,062
Income taxes payable 2,986 112
Accrued taxes and licenses 56,824 42,758
Other accrued liabilities 92,178 101,540
Total current liabilities 828,130 745,434
Operating lease liabilities, net of current portion 826,300 743,476
Restricted stock and other deposits 9,288 8,893
Deferred tax liabilities, net 8,184 23,104
Other liabilities 145,154 114,958
Total liabilities 1,817,056 1,635,865
Texas Roadhouse, Inc. and subsidiaries stockholders' equity:    
Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding)
Common stock ($0.001 par value, 100,000,000 shares authorized, 66,574,626 and 66,789,464 shares issued and outstanding at December 31, 2024 and December 26, 2023, respectively) 67 67
Retained earnings 1,358,280 1,141,595
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity 1,358,347 1,141,662
Noncontrolling interests 15,376 15,849
Total equity 1,373,723 1,157,511
Total liabilities and equity $ 3,190,779 $ 2,793,376
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 26, 2023
Consolidated Balance Sheets    
Receivables, allowance for doubtful accounts (in dollars) $ 7 $ 35
Property and equipment, accumulated depreciation (in dollars) 1,223,064 1,078,855
Intangible assets, accumulated amortization (in dollars) $ 23,147 $ 20,929
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 66,574,626 66,789,464
Common stock, shares outstanding 66,574,626 66,789,464
v3.25.0.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Revenue:      
Total revenue $ 5,373,332 $ 4,631,672 $ 4,014,919
Restaurant operating costs (excluding depreciation and amortization shown separately below):      
Food and beverage 1,785,119 1,593,852 1,378,192
Labor 1,764,740 1,539,124 1,319,959
Rent 80,560 72,766 66,834
Other operating 795,657 690,848 596,305
Pre-opening 28,090 29,234 21,883
Depreciation and amortization 178,157 153,202 137,237
Impairment and closure, net 1,226 275 1,600
General and administrative 223,264 198,382 172,712
Total costs and expenses 4,856,813 4,277,683 3,694,722
Income from operations 516,519 353,989 320,197
Interest income (expense), net 6,774 2,984 (124)
Equity income from investments in unconsolidated affiliates 1,197 1,351 1,239
Income before taxes 524,490 358,324 321,312
Income tax expense 80,145 44,649 43,715
Net income including noncontrolling interests 444,345 313,675 277,597
Less: Net income attributable to noncontrolling interests 10,753 8,799 7,779
Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 433,592 $ 304,876 $ 269,818
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:      
Basic $ 6.5 $ 4.56 $ 3.99
Diluted $ 6.47 $ 4.54 $ 3.97
Weighted average shares outstanding:      
Basic 66,752 66,893 67,643
Diluted 67,011 67,149 67,920
Cash dividends declared per share $ 2.44 $ 2.2 $ 1.84
Restaurant and other sales      
Revenue:      
Total revenue $ 5,341,853 $ 4,604,554 $ 3,988,791
Franchise royalties and fees      
Revenue:      
Total revenue $ 31,479 $ 27,118 $ 26,128
v3.25.0.1
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Parent [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Total
Balance at Dec. 28, 2021 $ 1,058,124 $ 69 $ 114,504 $ 943,551 $ 15,360 $ 1,073,484
Balance (in shares) at Dec. 28, 2021   69,382,418        
Increase (Decrease) in Stockholders' Equity            
Net income 269,818     269,818 7,779 277,597
Distributions to noncontrolling interest holders         (7,775) (7,775)
Acquisition of noncontrolling interest (1,395)   (1,395)   (340) (1,735)
Dividends declared (124,137)     (124,137)   (124,137)
Shares issued under share-based compensation plans including tax effects (in shares)   474,771        
Indirect repurchase of shares for minimum tax withholdings (13,576)   (13,576)     (13,576)
Indirect repurchase of shares for minimum tax withholdings (in shares)   (149,873)        
Repurchase of shares of common stock (212,859) $ (2) (123,057) (89,800)   (212,859)
Repurchase of shares of common stock (in shares)   (2,734,005)        
Share-based compensation 36,663   36,663     36,663
Balance at Dec. 27, 2022 1,012,638 $ 67 13,139 999,432 15,024 1,027,662
Balance (in shares) at Dec. 27, 2022   66,973,311        
Increase (Decrease) in Stockholders' Equity            
Net income 304,876     304,876 8,799 313,675
Distributions to noncontrolling interest holders         (7,974) (7,974)
Dividends declared (147,182)     (147,182)   (147,182)
Shares issued under share-based compensation plans including tax effects (in shares)   391,793        
Indirect repurchase of shares for minimum tax withholdings (12,688)   (12,688)     (12,688)
Indirect repurchase of shares for minimum tax withholdings (in shares)   (120,614)        
Repurchase of shares of common stock, including excise tax (50,212)   (34,681) (15,531)   (50,212)
Repurchase of shares of common stock, including excise tax (in shares)   (455,026)        
Share-based compensation 34,230   34,230     34,230
Balance at Dec. 26, 2023 1,141,662 $ 67   1,141,595 15,849 $ 1,157,511
Balance (in shares) at Dec. 26, 2023   66,789,464       66,789,464
Increase (Decrease) in Stockholders' Equity            
Net income 433,592     433,592 10,753 $ 444,345
Distributions to noncontrolling interest holders         (10,361) (10,361)
Acquisition of noncontrolling interest (3,297)   (3,297)   (865) (4,162)
Dividends declared (162,864)     (162,864)   (162,864)
Shares issued under share-based compensation plans including tax effects (in shares)   358,077        
Indirect repurchase of shares for minimum tax withholdings (17,608)   (17,608)     (17,608)
Indirect repurchase of shares for minimum tax withholdings (in shares)   (111,253)        
Repurchase of shares of common stock, including excise tax (80,193)   (26,150) (54,043)   (80,193)
Repurchase of shares of common stock, including excise tax (in shares)   (461,662)        
Share-based compensation 47,055   $ 47,055     47,055
Balance at Dec. 31, 2024 $ 1,358,347 $ 67   $ 1,358,280 $ 15,376 $ 1,373,723
Balance (in shares) at Dec. 31, 2024   66,574,626       66,574,626
v3.25.0.1
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Consolidated Statements of Stockholders' Equity      
Dividends declared (in dollars per share) $ 2.44 $ 2.2 $ 1.84
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Cash flows from operating activities:      
Net income including noncontrolling interests $ 444,345 $ 313,675 $ 277,597
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 178,157 153,202 137,237
Deferred income taxes (13,803) 3,115 9,456
Loss on disposition of assets 3,572 3,783 5,206
Impairment and closure costs 845 200 1,770
Equity income from investments in unconsolidated affiliates (1,197) (1,351) (1,239)
Distributions of income received from investments in unconsolidated affiliates 1,133 689 1,022
Provision for doubtful accounts (28) (14) 33
Share-based compensation expense 47,055 34,230 36,663
Changes in operating working capital, net of acquisitions:      
Receivables (17,668) (24,420) 11,062
Inventories (2,436) 105 (6,099)
Prepaid expenses and other current assets (2,245) (5,612) (6,540)
Other assets (20,097) (22,617) 5,775
Accounts payable 13,142 23,083 5,408
Deferred revenue-gift cards 27,285 37,347 33,799
Accrued wages 33,919 13,518 (10,172)
Prepaid income taxes and income taxes payable 6,136 1,514 5,953
Accrued taxes and licenses 14,393 6,581 1,889
Other accrued liabilities 2,842 (3,460) 2,147
Operating lease right-of-use assets and lease liabilities 8,085 6,313 5,268
Other liabilities 30,194 25,103 (4,510)
Net cash provided by operating activities 753,629 564,984 511,725
Cash flows from investing activities:      
Capital expenditures-property and equipment (354,341) (347,034) (246,121)
Acquisitions of franchise restaurants, net of cash acquired 0 (39,153) (33,069)
Proceeds from sale of investments in unconsolidated affiliates 0 627 316
Proceeds from sale of property and equipment 1,441 2,110 2,269
Proceeds from sale leaseback transactions 15,999 16,283 12,871
Net cash used in investing activities (336,901) (367,167) (263,734)
Cash flows from financing activities:      
Payments on revolving credit facility 0 (50,000) (50,000)
Distributions to noncontrolling interest holders (10,361) (7,974) (7,775)
Acquisitions of noncontrolling interests (5,279) 0 (1,735)
Proceeds from restricted stock and other deposits, net 366 405 307
Indirect repurchase of shares for minimum tax withholdings (17,608) (12,688) (13,576)
Repurchase of shares of common stock, including excise tax as applicable (80,003) (49,993) (212,859)
Dividends paid to shareholders (162,864) (147,182) (124,137)
Net cash used in financing activities (275,749) (267,432) (409,775)
Net increase (decrease) in cash and cash equivalents 140,979 (69,615) (161,784)
Cash and cash equivalents-beginning of period 104,246 173,861 335,645
Cash and cash equivalents-end of period 245,225 104,246 173,861
Supplemental disclosures of cash flow information:      
Interest paid, net of amounts capitalized 891 1,119 1,547
Income taxes paid 87,333 39,861 25,910
Capital expenditures included in current liabilities $ 34,509 $ 47,550 $ 34,689
v3.25.0.1
Description of Business
12 Months Ended
Dec. 31, 2024
Description of Business  
Description of Business

(1) Description of Business

Texas Roadhouse, Inc. and subsidiaries in which we have a controlling interest (collectively, the "Company," "we," "our," and/or "us"), is a growing restaurant company operating predominantly in the casual dining segment. Our late founder, W. Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana.

The Company maintains three restaurant concepts operating as Texas Roadhouse, Bubba’s 33, and Jaggers. As of December 31, 2024, we owned and operated 666 restaurants and franchised an additional 118 restaurants in 49 states, one U.S. territory, and ten foreign countries. Of the 118 franchise restaurants, there were 60 domestic and 58 international restaurants, including one in a U.S. territory. As of December 26, 2023, we owned and operated 635 restaurants and franchised an additional 106 restaurants in 49 states and ten foreign countries. Of the 106 franchise restaurants, 58 were domestic and 48 were international restaurants.

v3.25.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Summary of Significant Accounting Policies.  
Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements present the financial position, results of operations, and cash flows of the Company. All significant intercompany balances and transactions have been eliminated in consolidation.

As of December 31, 2024 and December 26, 2023, we owned a majority interest in 19 and 20 company restaurants, respectively. The operating results of these majority-owned restaurants are consolidated and the portion of income attributable to noncontrolling interests is recorded in the line item net income attributable to noncontrolling interests in our consolidated statements of income.

As of December 31, 2024 and December 26, 2023, we owned a 5.0% to 10.0% equity interest in 20 domestic franchise restaurants. These unconsolidated restaurants are accounted for using the equity method. Our investments in these unconsolidated affiliates are included in other assets in our consolidated balance sheets, and our percentage share of net income earned by these unconsolidated affiliates is recorded in the line item equity income from investments in unconsolidated affiliates in our consolidated statements of income.

Fiscal Year

We utilize a 52 or 53 week accounting period that typically ends on the last Tuesday in December. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal year 2024 was 53 weeks in length and fiscal years 2023 and 2022 were 52 weeks in length. In fiscal year 2024, the additional week increased restaurant and other sales by $114.7 million and increased net income by approximately 5% in our consolidated statements of income.

Use of Estimates

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reporting of revenue and expenses during the period to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the valuation of property and equipment, goodwill, lease liabilities and right-of-use assets, obligations related to insurance reserves, legal reserves, income taxes, and gift card breakage and fees. Actual results could differ from those estimates.

Segment Reporting

Operating segments are defined as components of a company that engage in business activities from which it may earn revenue and incur expenses, and for which separate financial information is available and is regularly reviewed by the chief operating decision maker ("CODM") to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company’s operating segments have been identified in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") ASC 280, Segment Reporting, as amended by ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure.

We have identified Texas Roadhouse, Bubba’s 33, Jaggers, and our retail initiatives as separate operating segments. In addition, we have identified Texas Roadhouse and Bubba’s 33 as reportable segments. For further discussion of segment reporting, refer to Note 19.

Cash and Cash Equivalents

We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents also include receivables from credit card companies as these balances are highly liquid in nature and are settled within two to three business days. These amounted to $49.4 million and $27.8 million at December 31, 2024 and December 26, 2023, respectively.

Receivables

Receivables consist principally of amounts due from retail gift card providers, certain franchise restaurants for reimbursement of labor costs, pre-opening, and other expenses, and franchise restaurants for royalties and advertising fees.

Receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical collection experience, adjusted for current and forecasted economic conditions and other factors such as credit risk or industry trends, and the age of receivables. We review our allowance for doubtful accounts quarterly. Past due balances over 120 days are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Inventories

Inventories, consisting principally of food, beverages, and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Depreciation is computed on property and equipment, including assets located on leased properties, over the shorter of the estimated useful lives of the related assets or the underlying lease term using the straight-line method. In most cases, assets on leased properties are depreciated over a period of time which includes both the initial term of the lease and one or more option periods.

The estimated useful lives are:

Land improvements

    

10 - 25 years

Buildings and leasehold improvements

 

10 - 25 years

Furniture, fixtures and equipment

 

3 - 10 years

The cost of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived assets and included in Property and equipment, net.

Cloud Computing Arrangements

The Company capitalizes cloud computing implementation costs and amortizes these costs on a straight-line basis over the term of the related service agreement, including renewal periods that are reasonably certain to be exercised. Capitalized cloud computing implementation costs were $5.9 million and $3.0 million, net of accumulated amortization, as of December 31, 2024 and December 26, 2023, respectively. These costs are included in prepaid expenses and other current assets and other assets in our consolidated balance sheets. Related amortization expense was $3.9 million, $1.4 million, and $1.0 million for the years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively, and is included in general and administrative expenses in our consolidated statements of income.

Leases

We recognize operating lease right-of-use assets and operating lease liabilities for real estate leases, including our restaurant leases and Support Center lease, as well as certain restaurant equipment leases based on the present value of the lease payments over the lease term. At lease inception, we include option periods that we are reasonably certain to exercise in the lease term. To determine if an option is reasonably certain to be exercised, we analyze the economic penalties that would be imposed from a failure to renew a lease, including the loss of our investment in leasehold improvements or the loss of future cash flows. We estimate the present value of lease payments based on our incremental borrowing rate which considers our estimated credit rating for a secured or collateralized instrument and corresponds to the underlying lease term. In addition, operating lease right-of-use assets are reduced for accrued rent and increased for any initial direct costs recognized at lease inception. For real estate and restaurant equipment leases commencing in 2019 and later, we account for lease and non-lease components as a single lease component. Reductions of the right-of-use asset and the changes in the lease liability are included within the changes in operating lease right-of-use assets and lease liabilities in our consolidated statements of cash flows.

Certain of our operating leases contain predetermined fixed escalations of the minimum rent over the lease term. For these leases, we recognize the related total rent expense on a straight-line basis over the lease term. We may receive rent concessions or leasehold improvement incentives upon opening a restaurant that is subject to a lease which we consider when determining straight-line rent expense. We also may receive rent holidays, which would begin on the possession date and end when the store opens, during which no cash rent payments are typically due under the terms of the lease. Rent holidays are included in the lease term when determining straight-line rent expense.

Certain of our operating leases contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense as variable rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of the target is considered probable. In addition, certain of our operating leases have variable escalations of the minimum rent that depend on an index or rate. For these leases, we recognize operating lease right-of-use assets and operating lease liabilities based on the index or rate at the commencement date. Any subsequent changes to the index or rate are recognized as variable rent expense when the escalation is determinable.

Sale-leasebacks are transactions through which we sell previously acquired land at fair value and subsequently enter into a lease agreement on the same land. The resulting lease agreement is evaluated to determine classification as an operating or finance lease and is recorded based on the lease classification. Refer to Note 8 for further discussion of leases. 

Goodwill

Goodwill represents the excess of cost over fair value of assets of businesses acquired. In accordance with ASC 350, Intangibles—Goodwill and Other ("ASC 350"), goodwill is not subject to amortization and is evaluated for impairment on an annual basis, or sooner if an event or other circumstance indicates that goodwill may be impaired.  The annual assessment date is the first day of our fourth quarter. 

ASC 350 requires that goodwill be tested for impairment at the reporting unit level, or the level of internal reporting that reflects the way in which an entity manages its businesses. A reporting unit is defined as an operating segment, or one level below an operating segment. Our goodwill reporting units are at the concept or operating segment level.

As stated in ASC 350, an entity may first assess qualitative factors in order to determine if it is necessary to perform the quantitative test. In 2024 and 2023, we elected to perform a qualitative assessment for our annual review of goodwill. This review included evaluating factors such as macroeconomic conditions, industry and market considerations, cost factors, changes in management or key personnel, sustained decreases in share price, and the overall financial performance of the Company’s reporting units at the concept level. As a result of the qualitative assessment, no indicators of impairment were identified, and no additional indicators of impairment were identified through the end of the fiscal year that would require additional testing.

In 2024, 2023, and 2022, we determined there was no goodwill impairment. Refer to Note 7 for additional information related to goodwill and intangible assets.

Other Assets

Other assets consist primarily of deferred compensation plan assets, capitalized cloud computing implementation costs, investments in unconsolidated affiliates, and deposits. For further discussion of the deferred compensation plan, refer to Note 15 and Note 16.

Impairment or Disposal of Long-lived Assets

In accordance with ASC 360, Property, Plant, and Equipment, long-lived assets to be held and used in the business, such as property and equipment, operating lease right-of-use assets, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purposes of this evaluation, we define the asset group at the individual restaurant level. When we evaluate the restaurants, cash flows are the primary indicator of impairment.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the restaurant to estimated undiscounted future cash flows expected to be generated by the restaurant. Under our policies, trailing 12- month cash flow results under a predetermined amount at the individual restaurant level signals potential impairment. In our evaluation of restaurants that do not meet the cash flow threshold, we estimate future undiscounted cash flows from operating the restaurant over its remaining useful life, which can be for a period of over 20 years. In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period, and future periods and expectations of future sales growth. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants.

If the carrying amount of the restaurant exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount exceeds the estimated fair value of the assets. We generally measure fair value by discounting estimated future cash flows. When fair value is measured by discounting estimated future cash flows, the assumptions used are consistent with what we believe hypothetical market participants would use. We also use a discount rate that is commensurate with the risk inherent in the projected cash flows. The adjusted carrying amounts of assets to be held and used are depreciated over their remaining useful life. Refer to Note 17 for further discussion of amounts recorded as part of our impairment analysis.

Insurance Reserves

We self-insure a significant portion of expected losses related to employee health, workers’ compensation, general liability, employment practices liability, cybersecurity, and property claims. This includes our wholly-owned captive insurance company which covers certain lines of coverage. We use third-party insurance with varying retention levels to limit our exposure to significant losses.

We record a liability for unresolved claims and for an estimate of incurred but not reported claims based on historical experience. The estimated liability is based on a number of assumptions and factors regarding economic conditions, the frequency and severity of claims, and claim development history and settlement practices. Our assumptions are reviewed, monitored, and adjusted when warranted by changing circumstances.

Revenue Recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, which requires an entity to allocate the transaction price received from customers to each separate and distinct performance obligation and recognize revenue as these performance obligations are satisfied.  We recognize revenue from company restaurant sales when food and beverage products are sold. Restaurant sales include gross food and beverage sales, net of promotions and discounts, for all company restaurants. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from restaurant sales in the consolidated statements of income.

We record deferred revenue for gift cards that have been sold but not yet redeemed. When the gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. For some of the gift cards that are sold we have determined that, based on our historic gift card redemption patterns, the likelihood of redemption is remote. For these gift cards, we record a breakage adjustment as a component of restaurant and other sales in the consolidated statements of income and reduce deferred revenue by the amount never expected to be redeemed. We use historic gift card redemption patterns to determine the breakage rate to utilize and recognize the expected breakage amount in a manner generally consistent with the actual redemption pattern of the associated gift card. We review the breakage rate on an annual basis, or sooner if circumstances indicate that the rate may have significantly changed and update the rate as needed. In addition, we incur fees on all gift cards that are sold through third-party retailers. These fees are also deferred and generally recorded consistent with the actual redemption pattern of the associated gift cards and are recorded as a component of restaurant and other sales in the consolidated statements of income.

We also recognize revenue from our franchising of Texas Roadhouse and Jaggers restaurants. This includes franchise royalties and domestic marketing and advertising fees, initial and upfront franchise fees, domestic and international development agreements, and supervisory and administrative service fees. We recognize franchise royalties and domestic marketing and advertising fees as franchise restaurant sales occur. For initial and upfront franchise fees and fees from development agreements, because the services we provide related to these fees do not contain separate and distinct performance obligations from the franchise right, these fees are recognized on a straight-line basis over the term of the associated franchise agreement. We recognize fees from supervision and administrative services as incurred.

Income Taxes

We account for income taxes in accordance with ASC 740, Income Taxes, under which deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. For all years presented, no valuation allowances have been recorded.

Advertising

We have a domestic system-wide marketing and advertising fund. We maintain control of the marketing and advertising fund and, as such, have consolidated the fund’s activity for all the years presented. Domestic company and franchise restaurants are required to remit a designated portion of sales to the advertising fund. Advertising contributions related to company restaurants are expensed as incurred and recorded as a component of other operating costs in our consolidated statements of income. Advertising contributions received from our franchisees are recorded as a component of franchise royalties and fees in our consolidated statements of income. The associated advertising expenses are recorded as incurred within general and administrative expenses in our consolidated statements of income.

Other costs related to local restaurant area marketing initiatives are included in other operating costs in our consolidated statements of income. These costs and the company restaurant advertising contribution amounted to $31.8 million, $28.3 million, and $25.0 million for the years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively.

Pre-opening Expenses

Pre-opening expenses, which are charged to operations as incurred, consist of expenses incurred before the opening of a new or relocated restaurant and consist principally of opening team and training team compensation and benefits, travel expenses, rent, food, beverage, and other initial supplies and expenses.

Fair Value of Financial Instruments

Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This includes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date.

Level 1

Inputs based on quoted prices in active markets for identical assets.

Level 2

Inputs other than quoted prices included within Level 1 that are observable for the assets, either directly or indirectly.

Level 3

Inputs that are unobservable for the asset.

Fair value measurements are separately disclosed by level within the fair value hierarchy. Refer to Note 16 for further discussion of fair value measurement.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. This ASU primarily provides enhanced disclosures about significant segment expenses including requiring segment disclosures to include a description of other segment items by reportable segment and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods as well as the title of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing performance and allocating resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this guidance during the fourth quarter of the 2024 fiscal year and provided additional detail and disclosures in our segment reporting disclosures. Refer to Note 19 for further discussion of segment reporting.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU primarily provides enhanced disclosures about an entity’s income tax including requiring consistent categories and greater disaggregation of the information included in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in this update are effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. We are currently assessing the impact of this new standard on our income tax disclosures and expect to provide additional detail and disclosures under this new guidance.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU primarily provides enhanced disclosures about the components of expenses within the income statement including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are currently assessing the impact of this new standard on our disclosures and expect to provide additional detail and disclosures under this new guidance.

v3.25.0.1
Revenue
12 Months Ended
Dec. 31, 2024
Revenue  
Revenue

(3) Revenue

The following table disaggregates our revenue by major source:

Fiscal Year Ended

December 31, 2024

December 26, 2023

December 27, 2022

Restaurant and other sales

$

5,341,853

$

4,604,554

$

3,988,791

Franchise royalties

28,342

24,169

23,058

Franchise fees

3,137

2,949

3,070

Total revenue

$

5,373,332

$

4,631,672

$

4,014,919

The following table presents a rollforward of deferred revenue-gift cards:

Fiscal Year Ended

December 31, 2024

December 26, 2023

Beginning balance

$

373,913

$

335,403

Gift card activations, net of third-party fees

479,244

420,047

Gift card redemptions and breakage

(451,959)

(381,537)

Ending balance

$

401,198

$

373,913

We recognized restaurant sales of $234.0 million for the year ended December 31, 2024 related to amounts in deferred revenue as of December 26, 2023. We recognized restaurant sales of $209.2 million for the year ended December 26, 2023 related to amounts in deferred revenue as of December 27, 2022.

v3.25.0.1
Acquisitions
12 Months Ended
Dec. 31, 2024
Acquisitions  
Acquisitions

(4) Acquisitions

On December 28, 2022, the first day of the 2023 fiscal year, we completed the acquisition of eight franchise Texas Roadhouse restaurants located in Maryland and Delaware, including four in which we previously held a 5.0% equity interest. Pursuant to the terms of the acquisition agreements, we paid a total purchase price of $39.1 million, net of cash acquired. The transactions in which we held an equity interest were accounted for as step acquisitions, and we recorded a gain of $0.6 million on our previous investments in equity income from investments in unconsolidated affiliates in the consolidated statements of income.

These transactions were accounted for using the acquisition method as defined in ASC 805, Business Combinations. These acquisitions are consistent with our long-term strategy to increase net income and earnings per share.

The following table summarizes the consideration paid for these acquisitions and the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date, which are adjusted for final measurement-period adjustments.

Inventory

$

410

Property and equipment

 

17,763

Operating lease right-of-use assets

4,775

Goodwill

 

20,067

Intangible assets

 

1,700

Other assets

293

Deferred revenue-gift cards

(1,164)

Current portion of operating lease liabilities

 

(110)

Operating lease liabilities, net of current portion

(4,665)

$

39,069

Intangible assets represent reacquired franchise rights which are being amortized over a weighted-average useful life of 2.2 years. We expect all of the goodwill will be deductible for tax purposes and believe the resulting amount of goodwill reflects the benefit of sales and unit growth opportunities as well as the benefit of the assembled workforce of the acquired restaurants.

v3.25.0.1
Long-term Debt
12 Months Ended
Dec. 31, 2024
Long-term Debt  
Long-term Debt

(5) Long-term Debt

 We maintain a revolving credit facility (the "credit facility") with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A. and PNC Bank, N.A. The credit facility is an unsecured, revolving credit agreement and has a borrowing capacity of up to $300.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of commercial lenders. The credit facility has a maturity date of May 1, 2026.

We are required to pay interest on outstanding borrowings at the Term Secured Overnight Financing Rate ("SOFR"), plus a fixed adjustment of 0.10% and a variable adjustment of 0.875% to 1.875% depending on our consolidated leverage ratio.

As of December 31, 2024, we had no outstanding borrowings under the credit facility and had $296.8 million of availability, net of $3.2 million of outstanding letters of credit. As of December 26, 2023, we had no outstanding borrowings under the credit facility and had $295.3 million of availability, net of $4.7 million of outstanding letters of credit.

The interest rate for the credit facility as of December 31, 2024 and December 26, 2023 was 5.47% and 6.23%, respectively. ​

The lenders’ obligation to extend credit pursuant to the credit facility depends on us maintaining certain financial covenants, including a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio. The credit facility permits us to incur additional secured or unsecured indebtedness, except for the incurrence of secured indebtedness that in the aggregate is equal to or greater than $125.0 million and 20% of our consolidated tangible net worth. We were in compliance with all financial covenants as of December 31, 2024.

v3.25.0.1
Property and Equipment, Net
12 Months Ended
Dec. 31, 2024
Property and Equipment, Net  
Property and Equipment, Net

(6) Property and Equipment, Net

Property and equipment were as follows:

December 31,2024

December 26,2023

Land and improvements

$

174,027

$

165,919

Buildings and leasehold improvements

 

1,523,169

 

1,369,400

Furniture, fixtures, and equipment

 

1,027,644

 

908,489

Construction in progress

 

98,662

 

93,527

Liquor licenses

 

17,235

 

16,242

 

2,840,737

 

2,553,577

Accumulated depreciation and amortization

 

(1,223,064)

 

(1,078,855)

Total property and equipment, net

$

1,617,673

$

1,474,722

For the year ended December 31, 2024, there was no interest capitalized in connection with restaurant construction. For the years ended December 26, 2023 and December 27, 2022, the amount of interest capitalized in connection with restaurant construction was $0.5 million and $1.3 million, respectively.

v3.25.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

(7) Goodwill and Intangible Assets

All of our goodwill and intangible assets reside within the Texas Roadhouse reportable segment. The gross carrying amounts of goodwill and intangible assets were as follows:

Goodwill

Intangible Assets

Balance as of December 27, 2022

$

148,732

$

5,607

Additions

20,952

900

Amortization expense

(3,024)

Balance as of December 26, 2023

$

169,684

$

3,483

Additions

Amortization expense

(2,218)

Balance as of December 31, 2024

$

169,684

$

1,265

As of December 31, 2024, the gross carrying amount and accumulated amortization of the intangible assets were $24.4 million and $23.1 million, respectively. As of December 26, 2023, the gross carrying amount and accumulated amortization of the intangible assets were $24.4 million and $20.9 million, respectively.

Intangible assets consist of reacquired franchise rights. We amortize reacquired franchise rights on a straight-line basis over the remaining term of the franchise operating agreements, which varies by franchise agreement. Amortization expense for the next three years is expected to range from zero to $1.2 million. Refer to Note 4 for discussion of the acquisitions completed for the year ended December 26, 2023.

v3.25.0.1
Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

(8) Leases

We recognize right-of-use assets and lease liabilities for both real estate and equipment leases that have a term in excess of one year. As of December 31, 2024 and December 26, 2023, these amounts were as follows:

December 31, 2024

Real estate

Equipment

Total

Operating lease right-of-use assets

$

764,135

$

5,730

$

769,865

Current portion of operating lease liabilities

26,501

1,671

28,172

Operating lease liabilities, net of current portion

823,240

3,060

826,300

Total operating lease liabilities

$

849,741

$

4,731

$

854,472

December 26, 2023

Real estate

Equipment

Total

Operating lease right-of-use assets

$

686,271

$

7,743

$

694,014

Current portion of operating lease liabilities

25,812

1,599

27,411

Operating lease liabilities, net of current portion

740,446

3,030

743,476

Total operating lease liabilities

$

766,258

$

4,629

$

770,887

Information related to our real estate operating leases for the fiscal years ended December 31, 2024 and December 26, 2023 were as follows:

Fiscal Year Ended

Real estate costs

December 31, 2024

December 26, 2023

Operating lease

$

82,739

$

75,068

Variable lease

7,007

5,079

Total lease costs

$

89,746

$

80,147

Real estate lease liabilities maturity analysis

December 31, 2024

2025

$

79,801

2026

80,985

2027

82,040

2028

83,220

2029

84,257

Thereafter

1,061,956

Total

1,472,259

Less interest

622,518

Total discounted operating lease liabilities

$

849,741

Fiscal Year Ended

Real estate leases other information

December 31, 2024

December 26, 2023

Cash paid for amounts included in measurement of operating lease liabilities

$

74,654

$

68,755

Right-of-use assets obtained in exchange for new operating lease liabilities

$

104,548

$

83,310

Weighted-average remaining lease term (years)

17.35

17.71

Weighted-average discount rate

6.53

%

6.49

%

Operating lease payments exclude $48.0 million of future minimum lease payments for executed real estate leases of which we have not yet taken possession. In addition to the above operating leases, as of December 31, 2024, we had two finance leases with a right-of-use asset balance and lease liability balance of $1.9 million and $2.8 million, respectively. As of December 26, 2023, we had two finance leases with a right-of-use asset balance and lease liability balance of $2.0 million and $2.8 million, respectively. The right-of-use asset balance is included as a component of other assets and the lease liability balance as a component of other liabilities in the consolidated balance sheets.

In 2024, we entered into five sale leaseback transactions that generated proceeds of $16.0 million and no gain or loss was recognized on these transactions. In 2023, we entered into six sale leaseback that generated proceeds of $16.3 million and no gain or loss was recognized on these transactions. The resulting operating leases are included in the operating lease right-of-use assets and lease liabilities noted above.

v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

(9) Income Taxes

Components of our income tax expense for the years ended December 31, 2024, December 26, 2023, and December 27, 2022 were as follows:

Fiscal Year Ended

    

December 31, 2024

    

December 26, 2023

    

December 27, 2022

Current:

Federal

$

63,816

$

21,694

$

15,549

State

 

28,992

 

19,105

 

18,120

Foreign

1,140

735

590

Total current

 

93,948

 

41,534

 

34,259

Deferred:

Federal

 

(11,096)

4,518

 

9,664

State

 

(2,707)

(1,403)

 

(208)

Total deferred

 

(13,803)

 

3,115

 

9,456

Income tax expense

$

80,145

$

44,649

$

43,715

Our pre-tax income is substantially derived from domestic restaurants.

A reconciliation of the statutory federal income tax rate to our effective tax rate for December 31, 2024, December 26, 2023, and December 27, 2022 is as follows:

Fiscal Year Ended

December 31, 2024

December 26, 2023

December 27, 2022

Tax at statutory federal rate

21.0

%  

21.0

%  

21.0

%

State and local tax, net of federal benefit

3.6

3.6

3.7

FICA tip tax credit

(8.7)

(11.1)

(10.5)

Work opportunity tax credit

(0.5)

(1.0)

(1.3)

Share-based compensation

(0.9)

(0.5)

(0.1)

Net income attributable to noncontrolling interests

(0.4)

(0.4)

(0.4)

Officers compensation

0.6

0.6

0.7

Other

0.6

0.3

0.5

Total

15.3

%  

12.5

%  

13.6

%

Components of deferred tax liabilities, net were as follows:

    

December 31, 2024

    

December 26, 2023

Deferred tax assets:

Deferred revenue—gift cards

$

35,915

$

32,999

Insurance reserves

11,768

8,351

Other reserves

 

2,027

 

1,884

Share-based compensation

 

7,635

 

5,241

Operating lease liabilities

212,341

191,422

Deferred compensation

 

26,241

 

21,697

Tax credit carryforwards

45

Other assets

 

4,430

 

3,907

Total deferred tax asset

 

300,357

 

265,546

Deferred tax liabilities:

Property and equipment

 

(91,161)

 

(90,638)

Goodwill and intangibles

 

(8,693)

 

(9,116)

Operating lease right-of-use asset

(191,065)

(171,999)

Other liabilities

(17,622)

(16,897)

Total deferred tax liability

 

(308,541)

 

(288,650)

Net deferred tax liability

$

(8,184)

$

(23,104)

We have not provided a valuation allowance for any of our deferred tax assets as their realization is more likely than not.

A reconciliation of the beginning and ending liability for unrecognized tax benefits was as follows:

Balance at December 27, 2022

$

3,925

Additions to tax positions related to prior years

 

964

Additions to tax positions related to current year

139

Reductions due to statute expiration

(246)

Reductions due to exam settlement

 

Balance at December 26, 2023

 

4,782

Additions to tax positions related to prior years

317

Additions to tax positions related to current year

 

383

Reductions due to statute expiration

 

Reductions due to exam settlement

(221)

Balance at December 31, 2024

$

5,261

As of December 31, 2024 and December 26, 2023, the amount of unrecognized tax benefits that would impact the effective tax rate if recognized was $2.9 million and $2.5 million, respectively.

As of December 31, 2024 and December 26, 2023, the total amount of accrued penalties and interest related to uncertain tax provisions was recognized as a part of income tax expense and these amounts were not material.

All entities for which unrecognized tax benefits exist as of December 31, 2024 possess a December tax year-end. As a result, as of December 31, 2024, the tax years ended December 26, 2023, December 27, 2022, and December 28, 2021 remain subject to examination by all tax jurisdictions. As of December 31, 2024, no audits were in process by a tax jurisdiction that, if completed during the next twelve months, would be expected to result in a material change to our unrecognized tax benefits. Additionally, as of December 31, 2024, no event occurred that is likely to result in a significant increase or decrease in the unrecognized tax benefits through December 30, 2025.

v3.25.0.1
Preferred Stock
12 Months Ended
Dec. 31, 2024
Preferred Stock  
Preferred Stock

(10) Preferred Stock

Our Board of Directors (the "Board") is authorized, without further vote or action by the holders of common stock, to issue from time to time up to an aggregate of 1,000,000 shares of preferred stock in one or more series. Each series of preferred stock will have the number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as shall be determined by the Board, which may include, but are not limited to, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights, and preemptive rights. There were no shares of preferred stock outstanding as of December 31, 2024 and December 26, 2023.

v3.25.0.1
Stock Repurchase Program
12 Months Ended
Dec. 31, 2024
Stock Repurchase Program.  
Stock Repurchase Program

(11) Stock Repurchase Program

On March 17, 2022, our Board approved a stock repurchase program for the repurchase of up to $300.0 million of our common stock. This stock repurchase program has no expiration date. All repurchases to date under our stock repurchase programs have been made through open market transactions. The timing and the amount of any repurchases are determined by management under parameters approved by the Board, based on an evaluation of our stock price, market conditions, and other corporate considerations, including complying with Rule 10b5-1 trading arrangements under the Securities Exchange Act of 1934, as amended.

For the year ended December 31, 2024, we paid $79.8 million, excluding excise taxes, to repurchase 461,662 shares of our common stock. For the year ended December 26, 2023, we paid $50.0 million, excluding excise taxes, to repurchase 455,026 shares of our common stock. As of December 31, 2024, we had $37.1 million remaining under our authorized stock repurchase program. Refer to Note 20 for further discussion of our authorized stock repurchase program.

v3.25.0.1
Earnings Per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share

(12) Earnings Per Share

The share and net income per share data for all periods presented are based on the historical weighted-average shares outstanding. The diluted earnings per share calculations show the effect of the weighted-average restricted stock units outstanding from our equity incentive plans. Performance stock units are not included in the diluted earnings per share calculation until the performance-based criteria have been met. Refer to Note 14 for further discussion of our equity incentive plans.

For all periods presented, the weighted-average shares of nonvested stock units that were outstanding but not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect were not significant.

The following table sets forth the calculation of earnings per share and weighted average shares outstanding as presented in the accompanying consolidated statements of income:

Fiscal Year Ended

December 31,

    

December 26,

    

December 27,

2024

2023

2022

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

$

433,592

$

304,876

$

269,818

Basic EPS:

Weighted-average common shares outstanding

 

66,752

 

66,893

67,643

Basic EPS

$

6.50

$

4.56

$

3.99

Diluted EPS:

Weighted-average common shares outstanding

 

66,752

 

66,893

67,643

Dilutive effect of nonvested stock units

 

259

 

256

277

Shares-diluted

 

67,011

 

67,149

 

67,920

Diluted EPS

$

6.47

$

4.54

$

3.97

v3.25.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies  
Commitments and Contingencies

(13) Commitments and Contingencies

The estimated cost of completing capital project commitments at December 31, 2024 and December 26, 2023 was $243.6 million and $237.4 million, respectively.

As of December 31, 2024 and December 26, 2023, we are contingently liable for $9.4 million and $10.4 million, respectively, for seven lease guarantees. These amounts represent the maximum potential liability of future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No liabilities have been recorded as of December 31, 2024 or December 26, 2023, as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant.

During the year ended December 31, 2024, we bought our beef primarily from four suppliers. Although there are a limited number of beef suppliers, we believe that other suppliers could provide a similar product on comparable terms. We have no material minimum purchase commitments with our vendors that extend beyond a year.

Occasionally, we are a defendant in litigation arising in the ordinary course of business, including "slip and fall" accidents, employment related claims, dram shop statutes related to our service of alcohol, and claims from guests or employees alleging illness, injury or food quality, health, or operational concerns. None of these types of litigation, most of which are covered by insurance, has had a material effect on us and, as of the date of this report, we are not party to any litigation that we believe could have a material adverse effect on our business.

v3.25.0.1
Share-based Compensation
12 Months Ended
Dec. 31, 2024
Share-based Compensation  
Share-based Compensation

(14) Share-based Compensation

On May 13, 2021, our shareholders approved the Texas Roadhouse, Inc. 2021 Long-Term Incentive Plan (the "Plan"). The Plan provides for the granting of various forms of equity awards including options, stock appreciation rights, full value awards, and performance-based awards.

The Company provides restricted stock units ("RSUs") to employees as a form of share-based compensation. A RSU is the conditional right to receive one share of common stock upon satisfaction of the vesting requirement. In addition to RSUs, the Company provides performance stock units ("PSUs") to certain members of management as a form of share-based compensation. A PSU is the conditional right to receive one share of common stock upon meeting a performance obligation along with the satisfaction of the vesting requirement.

The following table summarizes share-based compensation expense recorded in the accompanying consolidated statements of income:

Fiscal Year Ended

December 31,

    

December 26,

    

December 27,

 

2024

2023

2022

Labor expense

$

16,277

$

11,470

$

10,656

General and administrative expense

 

30,778

 

22,760

 

26,007

Total share-based compensation expense

$

47,055

$

34,230

$

36,663

We recognize expense for RSUs and PSUs over the vesting term based on the grant date fair value of the award. We record forfeitures as they occur. Activity for our share-based compensation by type of grant for the fiscal year ended December 31, 2024 is presented below.

Summary Details for RSUs

    

    

Weighted-Average

    

Weighted-Average

    

Grant Date Fair

Remaining Contractual

Aggregate

Shares

Value

Term (years)

Intrinsic Value

Outstanding at December 26, 2023

 

442,327

$

98.41

Granted

 

306,099

158.64

Forfeited

 

(22,733)

123.05

Vested

 

(314,803)

99.10

Outstanding at December 31, 2024

 

410,890

$

141.43

 

0.9

$

74,052

As of December 31, 2024, with respect to unvested RSUs, there was $25.1 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.9 years. The vesting terms of all RSUs range from 1.0 to 5.0 years. The total intrinsic value of RSUs vested during the years ended December 31, 2024, December 26, 2023, and December 27, 2022 was $49.9 million, $37.8 million, and $37.1 million, respectively. The excess tax benefit associated with vested RSUs for the years ended December 31, 2024, December 26, 2023, and December 27, 2022 was $4.4 million, $1.7 million, and $0.4 million, respectively, which was recognized in the income tax provision.

Summary Details for PSUs

    

    

Weighted-Average

    

Weighted-Average

    

Grant Date Fair

Remaining Contractual

Aggregate

Shares

Value

Term (years)

Intrinsic Value

Outstanding at December 26, 2023

 

35,700

$

94.61

Granted

 

28,600

118.30

Performance shares adjustment (1)

9,274

94.17

Forfeited

 

Vested

 

(43,274)

94.17

Outstanding at December 31, 2024

 

30,300

$

117.46

 

0.1

$

5,460

(1)Additional shares from the January 2023 PSU grant that vested in January 2024 due to exceeding the initial 100% target.

We grant PSUs to certain members of management subject the achievement of certain earnings targets, which determine the number of units to vest at the end of the vesting period. Share-based compensation expense is recognized for the number of units expected to vest at the end of the period and is expensed beginning on the grant date and through the performance period. For each grant, PSUs vest after meeting the performance and service conditions. The total intrinsic value of PSUs vested during the years ended December 31, 2024, December 26, 2023, and December 27, 2022 was $6.4 million, $3.3 million, and $5.4 million, respectively.

On January 8, 2025, approximately 41,000 shares vested related to the January 2024 PSU grant and are expected to be distributed in February 2025. As of December 31, 2024, with respect to unvested PSUs, there was $0.1 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.1 years. The allowable excess tax benefit associated with vested PSUs for the years ended December 31, 2024, December 26, 2023, and December 27, 2022 was not significant.

v3.25.0.1
Employee Benefit Plans
12 Months Ended
Dec. 31, 2024
Employee Benefit Plans  
Employee Benefit Plans

(15) Employee Benefit Plans

We have a defined contribution benefit plan ("401(k) Plan") that is available to our Support Center employees and managers in our restaurants who meet certain compensation and eligibility requirements. The 401(k) Plan allows participating employees to defer the receipt of a portion of their compensation and contribute such amount to one or more investment options and the Company matches a certain percentage of the employee contributions. For the year ended December 31, 2024, company contributions totaling $8.4 million and $2.1 million were recorded in labor expense

and general and administrative expense, respectively, within the consolidated statements of income. For the year ended December 26, 2023, company contributions totaling $7.1 million and $1.8 million were recorded in labor expense and general and administrative expense, respectively, within the consolidated statements of income.

We also have a deferred compensation plan which allows highly compensated employees to defer a portion of their compensation and contribute such amounts to one or more investment funds held in a rabbi trust. Beginning in 2023, we implemented a company match of a certain percentage of the employee contributions to the deferred compensation plan. For the years ended December 31, 2024 and December 26, 2023, company contributions totaling $1.6 million and $1.5 million were recorded in labor expense and general and administrative expense, respectively, within the consolidated statements of income. Refer to Note 16 for further discussion on the fair value measurement of the deferred compensation plan assets and liabilities.

v3.25.0.1
Fair Value Measurement
12 Months Ended
Dec. 31, 2024
Fair Value Measurement  
Fair Value Measurement

(16) Fair Value Measurement

At December 31, 2024 and December 26, 2023, the fair values of cash and cash equivalents, accounts receivable, and accounts payable approximated their carrying values based on the short-term nature of these instruments. There were no transfers among levels within the fair value hierarchy during the year ended December 31, 2024.

The following table presents the fair values for our financial assets and liabilities measured on a recurring basis:

Fair Value Measurements

    

Level

    

December 31, 2024

    

December 26, 2023

Deferred compensation plan—assets

 

1

$

101,071

$

81,316

Deferred compensation plan—liabilities

 

1

$

(101,071)

$

(81,222)

We report the accounts of the deferred compensation plan in other assets and the corresponding liability in other liabilities in our consolidated balance sheets. These investments are considered trading securities and are reported at fair value based on quoted market prices. The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense in the consolidated statements of income.

v3.25.0.1
Impairment and Closure Costs
12 Months Ended
Dec. 31, 2024
Impairment and Closure Costs  
Impairment and Closure Costs

(17) Impairment and Closure Costs

We recorded impairment and closure costs of $1.2 million, $0.3 million and $1.6 million for the years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively.

Impairment and closure costs in 2024 included $0.8 million related to the impairment of a building at a previously relocated store and $0.4 million related to ongoing closure costs for stores which have been relocated.

Impairment and closure costs in 2023 included $0.3 million related to ongoing closure costs for stores which have been relocated.

Impairment and closure costs in 2022 included $1.7 million related to the impairment of the land, building, and operating lease right-of-use assets at three restaurants, two of which were relocated and $0.6 million related to ongoing closure costs. This was partially offset by a $0.7 million gain on the sale of land and building that was previously classified as assets held for sale.

v3.25.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2024
Related Party Transactions  
Related Party Transactions

(18) Related Party Transactions

As of December 31, 2024, December 26, 2023 and December 27, 2022, we had four franchise restaurants and one majority-owned company restaurant owned in part by a current officer of the Company. We recognized revenue of $2.1 million, $2.0 million, and $1.8 million for the years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively, related to the four franchise restaurants.  

v3.25.0.1
Segment Information
12 Months Ended
Dec. 31, 2024
Segment Information  
Segment Information

(19) Segment Information

Our CODM is the Chief Executive Officer. The CODM assesses the performance of the business and allocates resources at the concept level and as a result we have identified Texas Roadhouse, Bubba's 33, Jaggers, and our retail initiatives as separate operating segments. Our reportable segments are Texas Roadhouse and Bubba's 33. The Texas Roadhouse reportable segment includes the results of our company and franchise Texas Roadhouse restaurants. The Bubba's 33 reportable segment includes the results of our company Bubba's 33 restaurants. Our remaining operating segments, which include the results of our company and franchise Jaggers restaurants and the results of our retail initiatives, are included in Other. In addition, corporate-related assets, depreciation and amortization, and capital expenditures are also included in Other.

The CODM uses restaurant margin as the primary financial measure for assessing the performance of our segments. Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin is also used by our CODM to evaluate core restaurant-level operating efficiency and performance, assist in the evaluation of operating trends over time, and in making capital allocation decisions. Capital allocation decisions include approving new store openings and the refurbishment or relocation of existing restaurants.

In calculating restaurant margin, we exclude certain non-restaurant-level costs that support operations, including pre-opening and general and administrative expenses, but do not have a direct impact on restaurant-level operational efficiency and performance. We exclude pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results. We exclude depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as it represents a non-cash charge for the investment in our restaurants. We exclude impairment and closure expenses as we believe this provides a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in our industry.

Restaurant and other sales for all operating segments are derived primarily from food and beverage sales. We do not rely on any major customer as a source of sales and the customers and assets of our reportable segments are located predominantly in the United States. There are no material transactions between reportable segments.

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

Fiscal Year Ended December 31, 2024

Texas Roadhouse

Bubba's 33

Other

Total

Restaurant and other sales

$

5,012,707

$

297,608

$

31,538

$

5,341,853

Restaurant operating costs (excluding depreciation and amortization):

Food and Beverage

1,691,302

83,701

10,116

1,785,119

Labor

1,646,437

108,306

9,997

1,764,740

Rent

72,060

7,677

823

80,560

Other Operating

737,909

51,502

6,246

795,657

Restaurant margin

$

864,999

$

46,422

$

4,356

$

915,777

Depreciation and amortization

$

149,934

$

16,447

$

11,776

$

178,157

Segment assets

2,488,679

255,320

446,780

3,190,779

Capital expenditures

304,259

38,557

11,525

354,341

Fiscal Year Ended December 26, 2023

Texas Roadhouse

Bubba's 33

Other

Total

Restaurant and other sales

$

4,331,823

$

247,195

$

25,536

$

4,604,554

Restaurant operating costs (excluding depreciation and amortization):

Food and Beverage

1,514,421

71,101

8,330

1,593,852

Labor

1,438,802

92,241

8,081

1,539,124

Rent

65,519

6,624

623

72,766

Other Operating

641,923

43,287

5,638

690,848

Restaurant margin

$

671,158

$

33,942

$

2,864

$

707,964

Depreciation and amortization

$

126,719

$

14,210

$

12,273

$

153,202

Segment assets

2,290,213

232,086

271,077

2,793,376

Capital expenditures

306,599

27,908

12,527

347,034

Fiscal Year Ended December 27, 2022

Texas Roadhouse

Bubba's 33

Other

Total

Restaurant and other sales

$

3,762,884

$

211,690

$

14,217

$

3,988,791

Restaurant operating costs (excluding depreciation and amortization):

Food and Beverage

1,306,658

66,237

5,297

1,378,192

Labor

1,239,257

76,178

4,524

1,319,959

Rent

60,837

5,712

285

66,834

Other Operating

555,935

36,629

3,741

596,305

Restaurant margin

$

600,197

$

26,934

$

370

$

627,501

Depreciation and amortization

$

112,546

$

13,012

$

11,679

$

137,237

Capital expenditures

204,662

30,625

10,834

246,121

A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest income (expense), net and equity income from investments in unconsolidated affiliates to reportable segments.

Fiscal Year Ended

December 31, 2024

December 26, 2023

December 27, 2022

Restaurant margin

$

915,777

$

707,964

$

627,501

Add:

Franchise royalties and fees

31,479

27,118

26,128

Less:

Pre-opening

28,090

29,234

21,883

Depreciation and amortization

178,157

153,202

137,237

Impairment and closure, net

1,226

275

1,600

General and administrative

223,264

198,382

172,712

Income from operations

$

516,519

$

353,989

$

320,197

v3.25.0.1
Subsequent Events
12 Months Ended
Dec. 31, 2024
Subsequent Events  
Subsequent Events

(20) Subsequent Events

On January 1, 2025, we completed the acquisition of 13 domestic franchise restaurants. Pursuant to the terms of the acquisition agreements, we paid an aggregate purchase price of approximately $78 million. We expect to complete the preliminary purchase price allocations relating to these transactions in the first quarter of fiscal year 2025.

On February 19, 2025, our Board approved a stock repurchase program for the repurchase of up to $500.0 million of our common stock. This new stock repurchase program commenced on February 24, 2025 and any repurchases under such plan will be made by the Company through open market transactions. This stock repurchase program has no expiration date and replaces the previous stock repurchase program of $300 million which was approved on March 17, 2022.

v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Rule 10b5-1 Trading Plans

In accordance with the disclosure requirement set forth in Item 408 of Regulation S-K, the following table discloses any executive officer or director who is subject to the filing requirements of Section 16 of the Exchange Act that adopted a Rule 10b5-1 trading arrangement during the fourth quarter ended December 31, 2024. These trading arrangements are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Name

Title

Adoption Date

End Date (1)

Aggregate Number of Securities to be Sold

Gerald L. Morgan

Chief Executive Officer

11/14/2024

5/14/2026

20,000

Regina A. Tobin

President

11/18/2024

11/18/2025

3,370

(1)A trading plan may expire on such earlier date that all transactions under the trading plan are completed.

Other than as disclosed above, no other executive officer or director adopted, modified, or terminated a Rule 10b5-1 or a non-Rule 10b5-1 trading arrangement during the 14 weeks ended December 31, 2024.

Gerald L. Morgan  
Trading Arrangements, by Individual  
Name Gerald L. Morgan
Title Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date 11/14/2024
Expiration Date 5/14/2026
Aggregate Available 20,000
Regina A. Tobin  
Trading Arrangements, by Individual  
Name Regina A. Tobin
Title President
Rule 10b5-1 Arrangement Adopted true
Adoption Date 11/18/2024
Expiration Date 11/18/2025
Aggregate Available 3,370
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

In the course of our operations, the Company receives and maintains sensitive information from our guests, employees, partners, and business operations. To address cybersecurity threats to this information, the Company uses a risk-based approach to create and implement a detailed set of information security policies and procedures based on frameworks established by the National Institute of Standards and Technology. The Company’s Head of Information Security manages the Company’s cybersecurity efforts and leads the cybersecurity team under the direct oversight of our Chief Technology Officer. These individuals, including all members of the cybersecurity team, have an average of over 16 years of experience involving information technology, including security, auditing, compliance, systems, and programming. Additionally, the Company engages in the use of external cybersecurity experts for training, contingency planning, consultation, and process documentation.

The Company has implemented detective and preventative controls designed to ensure the appropriate level of protection for the confidentiality, integrity, and availability of data stored on or transferred through our information technology resources.  The Company has a risk assessment process to identify risks associated with our use of third-party service providers and has implemented specific processes and controls designed to mitigate those identified risks. Both internal and third-party audits are performed routinely to verify that these controls are effective. Additionally, the Company has implemented companywide security awareness training programs designed to provide best practices for protecting our network and systems, and routinely leads exercises for employees to reinforce the risk and proper handling of targeted emails. The Company’s Head of Information Security is responsible for developing and implementing these controls and training exercises with support from our information technology department. 

The Company’s enterprise risk management program has established an internal risk committee to evaluate information governance risks including risks associated with the Company’s use of artificial intelligence. This committee comprises members of management of the Company’s information technology, human resources, marketing, accounting, risk, procurement, training, finance, and legal functions, and is focused on performing risk assessments to identify areas of concern and implement appropriate changes to enhance its cybersecurity and privacy policies and procedures. The internal risk committee is informed of the Company’s risk prevention and mitigation efforts on a regular basis. The committee is also briefed on detection and remediation of cybersecurity incidents in a timely manner following the detection of any potential events.

The Company has a crisis response team comprising senior members of various corporate functions to oversee the response to various crises including potential crises arising from cybersecurity incidents that may impact the Company and/or its vendor partners.  This team conducts regular tabletop exercises to simulate responses to cybersecurity incidents. To the extent there is a cybersecurity incident impacting the Company and/or a vendor partner, the crisis response team’s process would be to ensure that our Head of Information Security and Chief Technology Officer are informed immediately and that the potential impact of the incident and remedial measures arising from the incident are communicated to the executive officers of the Company.

There can be no guarantee that our policies and procedures will be effective. Although our risk factors include

further detail about the material cybersecurity risks we face and how a cybersecurity incident may affect our business strategy, results of operations, or financial condition, we believe that risks from prior cybersecurity threats, including as a result of any prior cybersecurity incident, have not materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition to date. We can provide no assurances that there will not be incidents in the future or that they will not materially affect us, including our business strategy, results of operations, or financial condition.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] The Company has implemented detective and preventative controls designed to ensure the appropriate level of protection for the confidentiality, integrity, and availability of data stored on or transferred through our information technology resources.  The Company has a risk assessment process to identify risks associated with our use of third-party service providers and has implemented specific processes and controls designed to mitigate those identified risks. Both internal and third-party audits are performed routinely to verify that these controls are effective. Additionally, the Company has implemented companywide security awareness training programs designed to provide best practices for protecting our network and systems, and routinely leads exercises for employees to reinforce the risk and proper handling of targeted emails. The Company’s Head of Information Security is responsible for developing and implementing these controls and training exercises with support from our information technology department.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Board has authorized the audit committee to oversee the Company’s risk assessment and risk management practices and strategies. This delegation includes maintaining responsibility for overseeing the Company’s enterprise risk management program. As a part of this oversight role, the audit committee receives regular updates from management on cybersecurity threats and privacy risks impacting the Company, which includes benchmarking these risks versus our industry. Our Board members also engage in ad hoc conversations with management on cybersecurity-related news events, receive training specific to cybersecurity risks and threats and regularly discuss any updates to our cybersecurity risk management and strategy programs.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board has authorized the audit committee to oversee the Company’s risk assessment and risk management practices and strategies.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] the audit committee receives regular updates from management on cybersecurity threats and privacy risks impacting the Company, which includes benchmarking these risksversus our industry. Our Board members also engage in ad hoc conversations with management on cybersecurity-related news events, receive training specific to cybersecurity risks and threats and regularly discuss any updates to our cybersecurity risk management and strategy programs.
Cybersecurity Risk Role of Management [Text Block]

The Company has implemented detective and preventative controls designed to ensure the appropriate level of protection for the confidentiality, integrity, and availability of data stored on or transferred through our information technology resources.  The Company has a risk assessment process to identify risks associated with our use of third-party service providers and has implemented specific processes and controls designed to mitigate those identified risks. Both internal and third-party audits are performed routinely to verify that these controls are effective. Additionally, the Company has implemented companywide security awareness training programs designed to provide best practices for protecting our network and systems, and routinely leads exercises for employees to reinforce the risk and proper handling of targeted emails. The Company’s Head of Information Security is responsible for developing and implementing these controls and training exercises with support from our information technology department. 

The Company’s enterprise risk management program has established an internal risk committee to evaluate information governance risks including risks associated with the Company’s use of artificial intelligence. This committee comprises members of management of the Company’s information technology, human resources, marketing, accounting, risk, procurement, training, finance, and legal functions, and is focused on performing risk assessments to identify areas of concern and implement appropriate changes to enhance its cybersecurity and privacy policies and procedures. The internal risk committee is informed of the Company’s risk prevention and mitigation efforts on a regular basis. The committee is also briefed on detection and remediation of cybersecurity incidents in a timely manner following the detection of any potential events.

The Company has a crisis response team comprising senior members of various corporate functions to oversee the response to various crises including potential crises arising from cybersecurity incidents that may impact the Company and/or its vendor partners.  This team conducts regular tabletop exercises to simulate responses to cybersecurity incidents. To the extent there is a cybersecurity incident impacting the Company and/or a vendor partner, the crisis response team’s process would be to ensure that our Head of Information Security and Chief Technology Officer are informed immediately and that the potential impact of the incident and remedial measures arising from the incident are communicated to the executive officers of the Company.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Company’s Head of Information Security manages the Company’s cybersecurity efforts and leads the cybersecurity team under the direct oversight of our Chief Technology Officer.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] These individuals, including all members of the cybersecurity team, have an average of over 16 years of experience involving information technology, including security, auditing, compliance, systems, and programming.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] To the extent there is a cybersecurity incident impacting the Company and/or a vendor partner, the crisis response team’s process would be to ensure that our Head of Information Security and Chief Technology Officer are informed immediately and that the potential impact of the incident and remedial measures arising from the incident are communicated to the executive officers of the Company.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Summary of Significant Accounting Policies.  
Principles of Consolidation

The accompanying consolidated financial statements present the financial position, results of operations, and cash flows of the Company. All significant intercompany balances and transactions have been eliminated in consolidation.

As of December 31, 2024 and December 26, 2023, we owned a majority interest in 19 and 20 company restaurants, respectively. The operating results of these majority-owned restaurants are consolidated and the portion of income attributable to noncontrolling interests is recorded in the line item net income attributable to noncontrolling interests in our consolidated statements of income.

As of December 31, 2024 and December 26, 2023, we owned a 5.0% to 10.0% equity interest in 20 domestic franchise restaurants. These unconsolidated restaurants are accounted for using the equity method. Our investments in these unconsolidated affiliates are included in other assets in our consolidated balance sheets, and our percentage share of net income earned by these unconsolidated affiliates is recorded in the line item equity income from investments in unconsolidated affiliates in our consolidated statements of income.

Fiscal Year

Fiscal Year

We utilize a 52 or 53 week accounting period that typically ends on the last Tuesday in December. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal year 2024 was 53 weeks in length and fiscal years 2023 and 2022 were 52 weeks in length. In fiscal year 2024, the additional week increased restaurant and other sales by $114.7 million and increased net income by approximately 5% in our consolidated statements of income.

Use of Estimates

Use of Estimates

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reporting of revenue and expenses during the period to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the valuation of property and equipment, goodwill, lease liabilities and right-of-use assets, obligations related to insurance reserves, legal reserves, income taxes, and gift card breakage and fees. Actual results could differ from those estimates.

Segment Reporting

Segment Reporting

Operating segments are defined as components of a company that engage in business activities from which it may earn revenue and incur expenses, and for which separate financial information is available and is regularly reviewed by the chief operating decision maker ("CODM") to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company’s operating segments have been identified in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") ASC 280, Segment Reporting, as amended by ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure.

We have identified Texas Roadhouse, Bubba’s 33, Jaggers, and our retail initiatives as separate operating segments. In addition, we have identified Texas Roadhouse and Bubba’s 33 as reportable segments. For further discussion of segment reporting, refer to Note 19.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents also include receivables from credit card companies as these balances are highly liquid in nature and are settled within two to three business days. These amounted to $49.4 million and $27.8 million at December 31, 2024 and December 26, 2023, respectively.

Receivables

Receivables

Receivables consist principally of amounts due from retail gift card providers, certain franchise restaurants for reimbursement of labor costs, pre-opening, and other expenses, and franchise restaurants for royalties and advertising fees.

Receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical collection experience, adjusted for current and forecasted economic conditions and other factors such as credit risk or industry trends, and the age of receivables. We review our allowance for doubtful accounts quarterly. Past due balances over 120 days are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Inventories

Inventories

Inventories, consisting principally of food, beverages, and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Depreciation is computed on property and equipment, including assets located on leased properties, over the shorter of the estimated useful lives of the related assets or the underlying lease term using the straight-line method. In most cases, assets on leased properties are depreciated over a period of time which includes both the initial term of the lease and one or more option periods.

The estimated useful lives are:

Land improvements

    

10 - 25 years

Buildings and leasehold improvements

 

10 - 25 years

Furniture, fixtures and equipment

 

3 - 10 years

The cost of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived assets and included in Property and equipment, net.

Cloud Computing Arrangements

Cloud Computing Arrangements

The Company capitalizes cloud computing implementation costs and amortizes these costs on a straight-line basis over the term of the related service agreement, including renewal periods that are reasonably certain to be exercised. Capitalized cloud computing implementation costs were $5.9 million and $3.0 million, net of accumulated amortization, as of December 31, 2024 and December 26, 2023, respectively. These costs are included in prepaid expenses and other current assets and other assets in our consolidated balance sheets. Related amortization expense was $3.9 million, $1.4 million, and $1.0 million for the years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively, and is included in general and administrative expenses in our consolidated statements of income.

Leases

Leases

We recognize operating lease right-of-use assets and operating lease liabilities for real estate leases, including our restaurant leases and Support Center lease, as well as certain restaurant equipment leases based on the present value of the lease payments over the lease term. At lease inception, we include option periods that we are reasonably certain to exercise in the lease term. To determine if an option is reasonably certain to be exercised, we analyze the economic penalties that would be imposed from a failure to renew a lease, including the loss of our investment in leasehold improvements or the loss of future cash flows. We estimate the present value of lease payments based on our incremental borrowing rate which considers our estimated credit rating for a secured or collateralized instrument and corresponds to the underlying lease term. In addition, operating lease right-of-use assets are reduced for accrued rent and increased for any initial direct costs recognized at lease inception. For real estate and restaurant equipment leases commencing in 2019 and later, we account for lease and non-lease components as a single lease component. Reductions of the right-of-use asset and the changes in the lease liability are included within the changes in operating lease right-of-use assets and lease liabilities in our consolidated statements of cash flows.

Certain of our operating leases contain predetermined fixed escalations of the minimum rent over the lease term. For these leases, we recognize the related total rent expense on a straight-line basis over the lease term. We may receive rent concessions or leasehold improvement incentives upon opening a restaurant that is subject to a lease which we consider when determining straight-line rent expense. We also may receive rent holidays, which would begin on the possession date and end when the store opens, during which no cash rent payments are typically due under the terms of the lease. Rent holidays are included in the lease term when determining straight-line rent expense.

Certain of our operating leases contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense as variable rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of the target is considered probable. In addition, certain of our operating leases have variable escalations of the minimum rent that depend on an index or rate. For these leases, we recognize operating lease right-of-use assets and operating lease liabilities based on the index or rate at the commencement date. Any subsequent changes to the index or rate are recognized as variable rent expense when the escalation is determinable.

Sale-leasebacks are transactions through which we sell previously acquired land at fair value and subsequently enter into a lease agreement on the same land. The resulting lease agreement is evaluated to determine classification as an operating or finance lease and is recorded based on the lease classification. Refer to Note 8 for further discussion of leases. 

Goodwill

Goodwill

Goodwill represents the excess of cost over fair value of assets of businesses acquired. In accordance with ASC 350, Intangibles—Goodwill and Other ("ASC 350"), goodwill is not subject to amortization and is evaluated for impairment on an annual basis, or sooner if an event or other circumstance indicates that goodwill may be impaired.  The annual assessment date is the first day of our fourth quarter. 

ASC 350 requires that goodwill be tested for impairment at the reporting unit level, or the level of internal reporting that reflects the way in which an entity manages its businesses. A reporting unit is defined as an operating segment, or one level below an operating segment. Our goodwill reporting units are at the concept or operating segment level.

As stated in ASC 350, an entity may first assess qualitative factors in order to determine if it is necessary to perform the quantitative test. In 2024 and 2023, we elected to perform a qualitative assessment for our annual review of goodwill. This review included evaluating factors such as macroeconomic conditions, industry and market considerations, cost factors, changes in management or key personnel, sustained decreases in share price, and the overall financial performance of the Company’s reporting units at the concept level. As a result of the qualitative assessment, no indicators of impairment were identified, and no additional indicators of impairment were identified through the end of the fiscal year that would require additional testing.

In 2024, 2023, and 2022, we determined there was no goodwill impairment. Refer to Note 7 for additional information related to goodwill and intangible assets.

Other Assets

Other Assets

Other assets consist primarily of deferred compensation plan assets, capitalized cloud computing implementation costs, investments in unconsolidated affiliates, and deposits. For further discussion of the deferred compensation plan, refer to Note 15 and Note 16.

Impairment or Disposal of Long-lived Assets

Impairment or Disposal of Long-lived Assets

In accordance with ASC 360, Property, Plant, and Equipment, long-lived assets to be held and used in the business, such as property and equipment, operating lease right-of-use assets, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purposes of this evaluation, we define the asset group at the individual restaurant level. When we evaluate the restaurants, cash flows are the primary indicator of impairment.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the restaurant to estimated undiscounted future cash flows expected to be generated by the restaurant. Under our policies, trailing 12- month cash flow results under a predetermined amount at the individual restaurant level signals potential impairment. In our evaluation of restaurants that do not meet the cash flow threshold, we estimate future undiscounted cash flows from operating the restaurant over its remaining useful life, which can be for a period of over 20 years. In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period, and future periods and expectations of future sales growth. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants.

If the carrying amount of the restaurant exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount exceeds the estimated fair value of the assets. We generally measure fair value by discounting estimated future cash flows. When fair value is measured by discounting estimated future cash flows, the assumptions used are consistent with what we believe hypothetical market participants would use. We also use a discount rate that is commensurate with the risk inherent in the projected cash flows. The adjusted carrying amounts of assets to be held and used are depreciated over their remaining useful life. Refer to Note 17 for further discussion of amounts recorded as part of our impairment analysis.

Insurance Reserves

Insurance Reserves

We self-insure a significant portion of expected losses related to employee health, workers’ compensation, general liability, employment practices liability, cybersecurity, and property claims. This includes our wholly-owned captive insurance company which covers certain lines of coverage. We use third-party insurance with varying retention levels to limit our exposure to significant losses.

We record a liability for unresolved claims and for an estimate of incurred but not reported claims based on historical experience. The estimated liability is based on a number of assumptions and factors regarding economic conditions, the frequency and severity of claims, and claim development history and settlement practices. Our assumptions are reviewed, monitored, and adjusted when warranted by changing circumstances.

Revenue Recognition

Revenue Recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, which requires an entity to allocate the transaction price received from customers to each separate and distinct performance obligation and recognize revenue as these performance obligations are satisfied.  We recognize revenue from company restaurant sales when food and beverage products are sold. Restaurant sales include gross food and beverage sales, net of promotions and discounts, for all company restaurants. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from restaurant sales in the consolidated statements of income.

We record deferred revenue for gift cards that have been sold but not yet redeemed. When the gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. For some of the gift cards that are sold we have determined that, based on our historic gift card redemption patterns, the likelihood of redemption is remote. For these gift cards, we record a breakage adjustment as a component of restaurant and other sales in the consolidated statements of income and reduce deferred revenue by the amount never expected to be redeemed. We use historic gift card redemption patterns to determine the breakage rate to utilize and recognize the expected breakage amount in a manner generally consistent with the actual redemption pattern of the associated gift card. We review the breakage rate on an annual basis, or sooner if circumstances indicate that the rate may have significantly changed and update the rate as needed. In addition, we incur fees on all gift cards that are sold through third-party retailers. These fees are also deferred and generally recorded consistent with the actual redemption pattern of the associated gift cards and are recorded as a component of restaurant and other sales in the consolidated statements of income.

We also recognize revenue from our franchising of Texas Roadhouse and Jaggers restaurants. This includes franchise royalties and domestic marketing and advertising fees, initial and upfront franchise fees, domestic and international development agreements, and supervisory and administrative service fees. We recognize franchise royalties and domestic marketing and advertising fees as franchise restaurant sales occur. For initial and upfront franchise fees and fees from development agreements, because the services we provide related to these fees do not contain separate and distinct performance obligations from the franchise right, these fees are recognized on a straight-line basis over the term of the associated franchise agreement. We recognize fees from supervision and administrative services as incurred.

Income Taxes

Income Taxes

We account for income taxes in accordance with ASC 740, Income Taxes, under which deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. For all years presented, no valuation allowances have been recorded.

Advertising

Advertising

We have a domestic system-wide marketing and advertising fund. We maintain control of the marketing and advertising fund and, as such, have consolidated the fund’s activity for all the years presented. Domestic company and franchise restaurants are required to remit a designated portion of sales to the advertising fund. Advertising contributions related to company restaurants are expensed as incurred and recorded as a component of other operating costs in our consolidated statements of income. Advertising contributions received from our franchisees are recorded as a component of franchise royalties and fees in our consolidated statements of income. The associated advertising expenses are recorded as incurred within general and administrative expenses in our consolidated statements of income.

Other costs related to local restaurant area marketing initiatives are included in other operating costs in our consolidated statements of income. These costs and the company restaurant advertising contribution amounted to $31.8 million, $28.3 million, and $25.0 million for the years ended December 31, 2024, December 26, 2023, and December 27, 2022, respectively.

Pre-opening Expenses

Pre-opening Expenses

Pre-opening expenses, which are charged to operations as incurred, consist of expenses incurred before the opening of a new or relocated restaurant and consist principally of opening team and training team compensation and benefits, travel expenses, rent, food, beverage, and other initial supplies and expenses.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This includes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date.

Level 1

Inputs based on quoted prices in active markets for identical assets.

Level 2

Inputs other than quoted prices included within Level 1 that are observable for the assets, either directly or indirectly.

Level 3

Inputs that are unobservable for the asset.

Fair value measurements are separately disclosed by level within the fair value hierarchy. Refer to Note 16 for further discussion of fair value measurement.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. This ASU primarily provides enhanced disclosures about significant segment expenses including requiring segment disclosures to include a description of other segment items by reportable segment and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods as well as the title of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing performance and allocating resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted this guidance during the fourth quarter of the 2024 fiscal year and provided additional detail and disclosures in our segment reporting disclosures. Refer to Note 19 for further discussion of segment reporting.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU primarily provides enhanced disclosures about an entity’s income tax including requiring consistent categories and greater disaggregation of the information included in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in this update are effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. We are currently assessing the impact of this new standard on our income tax disclosures and expect to provide additional detail and disclosures under this new guidance.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU primarily provides enhanced disclosures about the components of expenses within the income statement including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are currently assessing the impact of this new standard on our disclosures and expect to provide additional detail and disclosures under this new guidance.

v3.25.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Summary of Significant Accounting Policies.  
Schedule of estimated useful lives of property and equipment

Land improvements

    

10 - 25 years

Buildings and leasehold improvements

 

10 - 25 years

Furniture, fixtures and equipment

 

3 - 10 years

v3.25.0.1
Revenue (Tables)
12 Months Ended
Dec. 31, 2024
Revenue  
Schedule of disaggregated revenue

Fiscal Year Ended

December 31, 2024

December 26, 2023

December 27, 2022

Restaurant and other sales

$

5,341,853

$

4,604,554

$

3,988,791

Franchise royalties

28,342

24,169

23,058

Franchise fees

3,137

2,949

3,070

Total revenue

$

5,373,332

$

4,631,672

$

4,014,919

Schedule of changes in contract liability

Fiscal Year Ended

December 31, 2024

December 26, 2023

Beginning balance

$

373,913

$

335,403

Gift card activations, net of third-party fees

479,244

420,047

Gift card redemptions and breakage

(451,959)

(381,537)

Ending balance

$

401,198

$

373,913

v3.25.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2024
Eight franchise restaurants  
Summary the consideration paid for the acquisitions, and the estimated preliminary fair value of the assets acquired, and the liabilities assumed

Inventory

$

410

Property and equipment

 

17,763

Operating lease right-of-use assets

4,775

Goodwill

 

20,067

Intangible assets

 

1,700

Other assets

293

Deferred revenue-gift cards

(1,164)

Current portion of operating lease liabilities

 

(110)

Operating lease liabilities, net of current portion

(4,665)

$

39,069

v3.25.0.1
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2024
Property and Equipment, Net  
Schedule of property and equipment

December 31,2024

December 26,2023

Land and improvements

$

174,027

$

165,919

Buildings and leasehold improvements

 

1,523,169

 

1,369,400

Furniture, fixtures, and equipment

 

1,027,644

 

908,489

Construction in progress

 

98,662

 

93,527

Liquor licenses

 

17,235

 

16,242

 

2,840,737

 

2,553,577

Accumulated depreciation and amortization

 

(1,223,064)

 

(1,078,855)

Total property and equipment, net

$

1,617,673

$

1,474,722

v3.25.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets  
Schedule of changes in the carrying amount of goodwill and intangible assets

Goodwill

Intangible Assets

Balance as of December 27, 2022

$

148,732

$

5,607

Additions

20,952

900

Amortization expense

(3,024)

Balance as of December 26, 2023

$

169,684

$

3,483

Additions

Amortization expense

(2,218)

Balance as of December 31, 2024

$

169,684

$

1,265

v3.25.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of lease costs

December 31, 2024

Real estate

Equipment

Total

Operating lease right-of-use assets

$

764,135

$

5,730

$

769,865

Current portion of operating lease liabilities

26,501

1,671

28,172

Operating lease liabilities, net of current portion

823,240

3,060

826,300

Total operating lease liabilities

$

849,741

$

4,731

$

854,472

December 26, 2023

Real estate

Equipment

Total

Operating lease right-of-use assets

$

686,271

$

7,743

$

694,014

Current portion of operating lease liabilities

25,812

1,599

27,411

Operating lease liabilities, net of current portion

740,446

3,030

743,476

Total operating lease liabilities

$

766,258

$

4,629

$

770,887

Schedule of operating leases maturity analysis

Fiscal Year Ended

Real estate costs

December 31, 2024

December 26, 2023

Operating lease

$

82,739

$

75,068

Variable lease

7,007

5,079

Total lease costs

$

89,746

$

80,147

Real estate lease liabilities maturity analysis

December 31, 2024

2025

$

79,801

2026

80,985

2027

82,040

2028

83,220

2029

84,257

Thereafter

1,061,956

Total

1,472,259

Less interest

622,518

Total discounted operating lease liabilities

$

849,741

Fiscal Year Ended

Real estate leases other information

December 31, 2024

December 26, 2023

Cash paid for amounts included in measurement of operating lease liabilities

$

74,654

$

68,755

Right-of-use assets obtained in exchange for new operating lease liabilities

$

104,548

$

83,310

Weighted-average remaining lease term (years)

17.35

17.71

Weighted-average discount rate

6.53

%

6.49

%

v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Taxes  
Schedule of components of our income tax provision

Fiscal Year Ended

    

December 31, 2024

    

December 26, 2023

    

December 27, 2022

Current:

Federal

$

63,816

$

21,694

$

15,549

State

 

28,992

 

19,105

 

18,120

Foreign

1,140

735

590

Total current

 

93,948

 

41,534

 

34,259

Deferred:

Federal

 

(11,096)

4,518

 

9,664

State

 

(2,707)

(1,403)

 

(208)

Total deferred

 

(13,803)

 

3,115

 

9,456

Income tax expense

$

80,145

$

44,649

$

43,715

Schedule of reconciliation of the statutory federal income tax rate to our effective tax rate

Fiscal Year Ended

December 31, 2024

December 26, 2023

December 27, 2022

Tax at statutory federal rate

21.0

%  

21.0

%  

21.0

%

State and local tax, net of federal benefit

3.6

3.6

3.7

FICA tip tax credit

(8.7)

(11.1)

(10.5)

Work opportunity tax credit

(0.5)

(1.0)

(1.3)

Share-based compensation

(0.9)

(0.5)

(0.1)

Net income attributable to noncontrolling interests

(0.4)

(0.4)

(0.4)

Officers compensation

0.6

0.6

0.7

Other

0.6

0.3

0.5

Total

15.3

%  

12.5

%  

13.6

%

Schedule of components of deferred tax assets (liabilities)

    

December 31, 2024

    

December 26, 2023

Deferred tax assets:

Deferred revenue—gift cards

$

35,915

$

32,999

Insurance reserves

11,768

8,351

Other reserves

 

2,027

 

1,884

Share-based compensation

 

7,635

 

5,241

Operating lease liabilities

212,341

191,422

Deferred compensation

 

26,241

 

21,697

Tax credit carryforwards

45

Other assets

 

4,430

 

3,907

Total deferred tax asset

 

300,357

 

265,546

Deferred tax liabilities:

Property and equipment

 

(91,161)

 

(90,638)

Goodwill and intangibles

 

(8,693)

 

(9,116)

Operating lease right-of-use asset

(191,065)

(171,999)

Other liabilities

(17,622)

(16,897)

Total deferred tax liability

 

(308,541)

 

(288,650)

Net deferred tax liability

$

(8,184)

$

(23,104)

Schedule of reconciliation of the beginning and ending liability for unrecognized tax benefits

Balance at December 27, 2022

$

3,925

Additions to tax positions related to prior years

 

964

Additions to tax positions related to current year

139

Reductions due to statute expiration

(246)

Reductions due to exam settlement

 

Balance at December 26, 2023

 

4,782

Additions to tax positions related to prior years

317

Additions to tax positions related to current year

 

383

Reductions due to statute expiration

 

Reductions due to exam settlement

(221)

Balance at December 31, 2024

$

5,261

v3.25.0.1
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of calculation of earnings per share and weighted average shares outstanding

Fiscal Year Ended

December 31,

    

December 26,

    

December 27,

2024

2023

2022

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

$

433,592

$

304,876

$

269,818

Basic EPS:

Weighted-average common shares outstanding

 

66,752

 

66,893

67,643

Basic EPS

$

6.50

$

4.56

$

3.99

Diluted EPS:

Weighted-average common shares outstanding

 

66,752

 

66,893

67,643

Dilutive effect of nonvested stock units

 

259

 

256

277

Shares-diluted

 

67,011

 

67,149

 

67,920

Diluted EPS

$

6.47

$

4.54

$

3.97

v3.25.0.1
Share-based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Share-based Compensation  
Summary of allocation of share-based compensation expense

Fiscal Year Ended

December 31,

    

December 26,

    

December 27,

 

2024

2023

2022

Labor expense

$

16,277

$

11,470

$

10,656

General and administrative expense

 

30,778

 

22,760

 

26,007

Total share-based compensation expense

$

47,055

$

34,230

$

36,663

Summary of restricted stock unit activity

    

    

Weighted-Average

    

Weighted-Average

    

Grant Date Fair

Remaining Contractual

Aggregate

Shares

Value

Term (years)

Intrinsic Value

Outstanding at December 26, 2023

 

442,327

$

98.41

Granted

 

306,099

158.64

Forfeited

 

(22,733)

123.05

Vested

 

(314,803)

99.10

Outstanding at December 31, 2024

 

410,890

$

141.43

 

0.9

$

74,052

Summary of performance share units

    

    

Weighted-Average

    

Weighted-Average

    

Grant Date Fair

Remaining Contractual

Aggregate

Shares

Value

Term (years)

Intrinsic Value

Outstanding at December 26, 2023

 

35,700

$

94.61

Granted

 

28,600

118.30

Performance shares adjustment (1)

9,274

94.17

Forfeited

 

Vested

 

(43,274)

94.17

Outstanding at December 31, 2024

 

30,300

$

117.46

 

0.1

$

5,460

(1)Additional shares from the January 2023 PSU grant that vested in January 2024 due to exceeding the initial 100% target.
v3.25.0.1
Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Measurement  
Schedule of fair values for our financial assets and liabilities measured on a recurring basis

Fair Value Measurements

    

Level

    

December 31, 2024

    

December 26, 2023

Deferred compensation plan—assets

 

1

$

101,071

$

81,316

Deferred compensation plan—liabilities

 

1

$

(101,071)

$

(81,222)

v3.25.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2024
Segment Information  
Schedule to reconcile our segment results to our consolidated results

Fiscal Year Ended December 31, 2024

Texas Roadhouse

Bubba's 33

Other

Total

Restaurant and other sales

$

5,012,707

$

297,608

$

31,538

$

5,341,853

Restaurant operating costs (excluding depreciation and amortization):

Food and Beverage

1,691,302

83,701

10,116

1,785,119

Labor

1,646,437

108,306

9,997

1,764,740

Rent

72,060

7,677

823

80,560

Other Operating

737,909

51,502

6,246

795,657

Restaurant margin

$

864,999

$

46,422

$

4,356

$

915,777

Depreciation and amortization

$

149,934

$

16,447

$

11,776

$

178,157

Segment assets

2,488,679

255,320

446,780

3,190,779

Capital expenditures

304,259

38,557

11,525

354,341

Fiscal Year Ended December 26, 2023

Texas Roadhouse

Bubba's 33

Other

Total

Restaurant and other sales

$

4,331,823

$

247,195

$

25,536

$

4,604,554

Restaurant operating costs (excluding depreciation and amortization):

Food and Beverage

1,514,421

71,101

8,330

1,593,852

Labor

1,438,802

92,241

8,081

1,539,124

Rent

65,519

6,624

623

72,766

Other Operating

641,923

43,287

5,638

690,848

Restaurant margin

$

671,158

$

33,942

$

2,864

$

707,964

Depreciation and amortization

$

126,719

$

14,210

$

12,273

$

153,202

Segment assets

2,290,213

232,086

271,077

2,793,376

Capital expenditures

306,599

27,908

12,527

347,034

Fiscal Year Ended December 27, 2022

Texas Roadhouse

Bubba's 33

Other

Total

Restaurant and other sales

$

3,762,884

$

211,690

$

14,217

$

3,988,791

Restaurant operating costs (excluding depreciation and amortization):

Food and Beverage

1,306,658

66,237

5,297

1,378,192

Labor

1,239,257

76,178

4,524

1,319,959

Rent

60,837

5,712

285

66,834

Other Operating

555,935

36,629

3,741

596,305

Restaurant margin

$

600,197

$

26,934

$

370

$

627,501

Depreciation and amortization

$

112,546

$

13,012

$

11,679

$

137,237

Capital expenditures

204,662

30,625

10,834

246,121

Schedule of restaurant margin to income from operations

Fiscal Year Ended

December 31, 2024

December 26, 2023

December 27, 2022

Restaurant margin

$

915,777

$

707,964

$

627,501

Add:

Franchise royalties and fees

31,479

27,118

26,128

Less:

Pre-opening

28,090

29,234

21,883

Depreciation and amortization

178,157

153,202

137,237

Impairment and closure, net

1,226

275

1,600

General and administrative

223,264

198,382

172,712

Income from operations

$

516,519

$

353,989

$

320,197

v3.25.0.1
Description of Business (Details)
Dec. 31, 2024
restaurant
item
territory
Dec. 26, 2023
country
restaurant
state
Description of Business    
Number of Restaurant Concepts 3  
Number of states in which restaurants operate 49 49
Number of countries in which restaurants operate 10 10
Entity Operated Units [Member]    
Description of Business    
Number of restaurants 666 635
Entity Operated Units [Member] | Consolidated Properties [Member]    
Description of Business    
Number of restaurants 19 20
Franchised Units [Member]    
Description of Business    
Number of restaurants 118 106
Franchised Units [Member] | Geographic Distribution, Domestic [Member]    
Description of Business    
Number of restaurants 60 58
Number of United States Territories in which restaurants operate | territory 1  
Franchised Units [Member] | Geographic Distribution, Foreign [Member]    
Description of Business    
Number of restaurants 58 48
Franchised Units [Member] | Unconsolidated Properties [Member] | Geographic Distribution, Domestic [Member] | Domestic franchise restaurants    
Description of Business    
Number of restaurants 20 20
v3.25.0.1
Summary of Significant Accounting Policies (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
restaurant
Dec. 31, 2024
USD ($)
restaurant
Dec. 26, 2023
USD ($)
restaurant
Dec. 27, 2022
USD ($)
Fiscal Year        
Restaurant and other sales | $   $ 5,373,332 $ 4,631,672 $ 4,014,919
Increase in Net Income 5.00%      
Cash and Cash Equivalents        
Cash and cash equivalents included receivables from credit card entity | $ $ 49,400 $ 49,400 $ 27,800  
Settlement period of credit card receivables, minimum   2 days    
Settlement period of credit card receivables, maximum   3 days    
Receivables        
Minimum number of days receivable are past due, warranting individual evaluation for collectability   120 days    
Franchised Units [Member]        
Principles of Consolidation        
Number of restaurants 118 118 106  
Franchised Units [Member] | Geographic Distribution, Domestic [Member]        
Principles of Consolidation        
Number of restaurants 60 60 58  
Franchised Units [Member] | Geographic Distribution, Foreign [Member]        
Principles of Consolidation        
Number of restaurants 58 58 48  
Entity Operated Units [Member]        
Principles of Consolidation        
Number of restaurants 666 666 635  
Minimum [Member]        
Fiscal Year        
Length of fiscal year   364 days 364 days 364 days
Length of fiscal quarter   91 days    
Maximum [Member]        
Fiscal Year        
Length of fiscal year   371 days    
Length of fiscal quarter   98 days    
Unconsolidated Properties [Member] | Franchised Units [Member] | Domestic franchise restaurants | Geographic Distribution, Domestic [Member]        
Principles of Consolidation        
Number of restaurants 20 20 20  
Unconsolidated Properties [Member] | Minimum [Member] | Franchised Units [Member] | Domestic franchise restaurants        
Principles of Consolidation        
Ownership percentage by entity 5.00% 5.00% 5.00%  
Unconsolidated Properties [Member] | Maximum [Member] | Franchised Units [Member] | Domestic franchise restaurants        
Principles of Consolidation        
Ownership percentage by entity 10.00% 10.00% 10.00%  
Consolidated Properties [Member] | Entity Operated Units [Member]        
Principles of Consolidation        
Number of restaurants 19 19 20  
Food and Beverage [Member]        
Fiscal Year        
Restaurant and other sales | $ $ 114,700 $ 5,341,853 $ 4,604,554 $ 3,988,791
v3.25.0.1
Summary of Significant Accounting Policies, PPE (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Impairment of Goodwill      
Impairment of goodwill $ 0 $ 0 $ 0
Minimum [Member]      
Impairment or Disposal of Long-Lived Assets      
Impairment analysis, estimated useful life of operating a restaurant 20 years    
Land Improvements [Member] | Minimum [Member]      
Property and Equipment      
Estimated useful life 10 years    
Land Improvements [Member] | Maximum [Member]      
Property and Equipment      
Estimated useful life 25 years    
Buildings and leasehold improvements | Minimum [Member]      
Property and Equipment      
Estimated useful life 10 years    
Buildings and leasehold improvements | Maximum [Member]      
Property and Equipment      
Estimated useful life 25 years    
Furniture, fixtures And equipment | Minimum [Member]      
Property and Equipment      
Estimated useful life 3 years    
Furniture, fixtures And equipment | Maximum [Member]      
Property and Equipment      
Estimated useful life 10 years    
v3.25.0.1
Summary of Significant Accounting Policies, Cloud Computing Arrangements (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Summary of Significant Accounting Policies.      
Capitalized cloud computing implementation costs $ 5,900,000 $ 3,000,000  
Related amortization expense 3,900,000 1,400,000 $ 1,000,000
Deferred Income Tax, Valuation Allowance $ 0 $ 0  
v3.25.0.1
Summary of Significant Accounting Policies, Advertising (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Advertising      
Company-owned restaurant contribution and other costs related to marketing initiatives $ 31.8 $ 28.3 $ 25.0
v3.25.0.1
Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Revenue        
Total revenue   $ 5,373,332 $ 4,631,672 $ 4,014,919
Restaurant and other sales        
Revenue        
Total revenue $ 114,700 5,341,853 4,604,554 3,988,791
Franchise royalties        
Revenue        
Total revenue   28,342 24,169 23,058
Franchise fees        
Revenue        
Total revenue   $ 3,137 $ 2,949 $ 3,070
v3.25.0.1
Revenue - Roll forward of deferred revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Revenue    
Beginning balance $ 373,913 $ 335,403
Gift card activations, net of third-party fees 479,244 420,047
Gift card redemptions and breakage (451,959) (381,537)
Ending Balance $ 401,198 $ 373,913
v3.25.0.1
Revenue - Other (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Credit Card [Member]    
Revenue    
Deferred revenue recognized $ 234.0 $ 209.2
v3.25.0.1
Acquisitions (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 26, 2023
USD ($)
restaurant
Dec. 27, 2022
USD ($)
Business Acquisition [Line Items]      
Goodwill $ 169,684 $ 169,684 $ 148,732
Eight franchise restaurants      
Business Acquisition [Line Items]      
Number of restaurants acquired | restaurant   8  
Equity interest percentage   5.00%  
Purchase price paid   $ 39,100  
Step acquisition gain   $ 600  
Weighted-average life 2 years 2 months 12 days    
Inventory $ 410    
Other assets 293    
Property and equipment 17,763    
Operating lease right-of-use assets 4,775    
Goodwill 20,067    
Intangible assets 1,700    
Deferred revenue-gift cards (1,164)    
Current portion of operating lease liabilities (110)    
Operating lease liabilities, net of current portion (4,665)    
Total $ 39,069    
v3.25.0.1
Long-term Debt (Details) - Revolving Credit Facility [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Revolving Credit Facility    
Revolving credit facility, maximum borrowing capacity $ 300.0  
Revolving credit facility contingent increase in maximum borrowing capacity $ 200.0  
Interest rate added to base rate (as a percent) 0.10%  
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] txrh:VariableAdjustmentRateMember  
Weighted-average interest rate (as a percent) 5.47% 6.23%
Revolving credit facility, amount outstanding $ 0.0  
Revolving credit facility, remaining borrowing capacity 296.8 $ 295.3
Letters of credit outstanding 3.2 $ 4.7
Threshold for aggregate secured indebtedness $ 125.0  
Debt instrument condition for additional borrowing of secured debt, based on percentage of consolidated tangible net worth 20.00%  
Minimum [Member]    
Revolving Credit Facility    
Interest rate added to base rate (as a percent) 0.875%  
Maximum [Member]    
Revolving Credit Facility    
Interest rate added to base rate (as a percent) 1.875%  
v3.25.0.1
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Property and Equipment, Net      
Property and Equipment, Gross $ 2,840,737 $ 2,553,577  
Accumulated depreciation and amortization (1,223,064) (1,078,855)  
Property, Plant and Equipment, Net 1,617,673 1,474,722  
Interest capitalized 0 500 $ 1,300
Land and Land Improvements [Member]      
Property and Equipment, Net      
Property and Equipment, Gross 174,027 165,919  
Buildings and leasehold improvements      
Property and Equipment, Net      
Property and Equipment, Gross 1,523,169 1,369,400  
Furniture, fixtures And equipment      
Property and Equipment, Net      
Property and Equipment, Gross 1,027,644 908,489  
Construction in Progress [Member]      
Property and Equipment, Net      
Property and Equipment, Gross 98,662 93,527  
Liquor licenses      
Property and Equipment, Net      
Property and Equipment, Gross $ 17,235 $ 16,242  
v3.25.0.1
Goodwill and Intangible Assets (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Changes in the carrying amount of goodwill      
Balance at the beginning of the period $ 169,684,000 $ 148,732,000  
Additions 0 20,952,000  
Impairment 0 0 $ 0
Balance at the end of the period 169,684,000 169,684,000 148,732,000
Changes in the carrying amount of intangible assets      
Balance at the beginning of the period, net 3,483,000 5,607,000  
Additions 0 900,000  
Amortization expense (2,218,000) (3,024,000)  
Balance at the end of the period, net 1,265,000 3,483,000 $ 5,607,000
Gross carrying amount 24,400,000 24,400,000  
Accumulated amortization 23,147,000 $ 20,929,000  
Minimum [Member]      
Changes in the carrying amount of intangible assets      
Expected amortization expense for each of the next four years 0    
Maximum [Member]      
Changes in the carrying amount of intangible assets      
Expected amortization expense for each of the next four years $ 1,200,000    
v3.25.0.1
Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 26, 2023
Leases    
Term (in years) 1 year  
Operating lease right-of-use assets, net $ 769,865 $ 694,014
Current portion of operating lease liabilities 28,172 27,411
Operating lease liabilities, net of current portion 826,300 743,476
Total discounted operating lease liabilities 854,472 770,887
Real Estate [Member]    
Leases    
Operating lease right-of-use assets, net 764,135 686,271
Current portion of operating lease liabilities 26,501 25,812
Operating lease liabilities, net of current portion 823,240 740,446
Total discounted operating lease liabilities 849,741 766,258
Equipment [Member]    
Leases    
Operating lease right-of-use assets, net 5,730 7,743
Current portion of operating lease liabilities 1,671 1,599
Operating lease liabilities, net of current portion 3,060 3,030
Total discounted operating lease liabilities $ 4,731 $ 4,629
v3.25.0.1
Leases - Real estate costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Lease, Cost [Abstract]    
Operating lease $ 82,739 $ 75,068
Variable lease 7,007 5,079
Total lease costs $ 89,746 $ 80,147
v3.25.0.1
Leases - Real estate lease liability maturity analysis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 26, 2023
Leases    
Total discounted operating lease liabilities $ 854,472 $ 770,887
Real Estate [Member]    
Leases    
2025 79,801  
2026 80,985  
2027 82,040  
2028 83,220  
2029 84,257  
Thereafter 1,061,956  
Total 1,472,259  
Less interest 622,518  
Total discounted operating lease liabilities $ 849,741 $ 766,258
v3.25.0.1
Leases - Real estate leases other information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
item
lease
Dec. 26, 2023
USD ($)
item
lease
Dec. 27, 2022
USD ($)
Leases [Abstract]      
Cash paid for amounts included in measurement of operating lease liabilities $ 74,654 $ 68,755  
Right-of-use assets obtained in exchange for new operating lease liabilities $ 104,548 $ 83,310  
Weighted-average remaining lease term 17 years 4 months 6 days 17 years 8 months 15 days  
Weighted-average discount rate 6.53% 6.49%  
Operating lease not yet taken possession $ 48,000    
Number of finance leases | lease 2 2  
Right-of-use asset $ 1,900 $ 2,000  
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent Other Assets, Noncurrent  
Lease liability $ 2,800 $ 2,800  
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent  
Number of sale leaseback transactions | item 5 6  
Proceeds from sale leaseback transactions $ 15,999 $ 16,283 $ 12,871
v3.25.0.1
Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Current:      
Federal $ 63,816 $ 21,694 $ 15,549
State 28,992 19,105 18,120
Foreign 1,140 735 590
Total current 93,948 41,534 34,259
Deferred:      
Federal (11,096) 4,518 9,664
State $ (2,707) $ (1,403) $ (208)
Reconciliation of the statutory federal income tax rate to our effective tax rate:      
Tax at statutory federal rate (as a percent) 21.00% 21.00% 21.00%
State and local tax, net of federal benefit (as a percent) 3.60% 3.60% 3.70%
FICA tip tax credit (as a percent) (8.70%) (11.10%) (10.50%)
Work opportunity tax credit (as a percent) (0.50%) (1.00%) (1.30%)
Stock compensation (as a percent) (0.90%) (0.50%) (0.10%)
Net income attributable to noncontrolling interests (as a percent) (0.40%) (0.40%) (0.40%)
Officers compensation 0.60% 0.60% 0.70%
Other (as a percent) 0.60% 0.30% 0.50%
Total (as a percent) 15.30% 12.50% 13.60%
v3.25.0.1
Income Taxes, Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 26, 2023
Deferred tax assets:    
Deferred revenue-gift cards $ 35,915 $ 32,999
Insurance reserves 11,768 8,351
Other reserves 2,027 1,884
Share-based compensation 7,635 5,241
Operating lease liabilities 212,341 191,422
Deferred compensation 26,241 21,697
Tax credit carryforwards 0 45
Other assets 4,430 3,907
Total deferred tax asset 300,357 265,546
Deferred tax liabilities:    
Property and equipment (91,161) (90,638)
Goodwill and intangibles (8,693) (9,116)
Operating lease right-of-use asset (191,065) (171,999)
Other liabilities (17,622) (16,897)
Total deferred tax liability (308,541) (288,650)
Net deferred tax liability $ (8,184) $ (23,104)
v3.25.0.1
Income Taxes (Unrecognized) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Reconciliation of the beginning and ending liability for unrecognized tax benefits:    
Balance at the beginning of the period $ 4,782 $ 3,925
Additions to tax positions related to prior years 317 964
Additions to tax positions related to current year 383 139
Reductions due to statute expiration 0 (246)
Reductions due to exam settlement (221) 0
Balance at the end of the period 5,261 4,782
Unrecognized Tax Benefits that Would Impact Effective Tax Rate $ 2,900 $ 2,500
v3.25.0.1
Preferred Stock (Details)
Dec. 31, 2024
item
shares
Dec. 26, 2023
item
shares
Preferred Stock    
Number of preferred stock shares authorized to issue 1,000,000 1,000,000
Minimum number of series of preferred stock authorized | item 1 1
Number of shares of preferred stock outstanding 0 0
v3.25.0.1
Stock Repurchase Program (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Mar. 17, 2022
Stock Repurchase Program.      
Repurchase of common stock authorized by board of directors     $ 300.0
Payments to repurchase common stock, excluding excise taxes $ 79.8 $ 50.0  
Number of shares repurchased 461,662 455,026  
Amount remaining under authorized stock repurchase program $ 37.1    
v3.25.0.1
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Earnings per share      
Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 433,592 $ 304,876 $ 269,818
Basic EPS:      
Weighted-average common shares outstanding (in shares) 66,752 66,893 67,643
Basic EPS (in dollars per share) $ 6.5 $ 4.56 $ 3.99
Diluted EPS:      
Weighted-average common shares outstanding (in shares) 66,752 66,893 67,643
Dilutive effect of nonvested stock units (in shares) 259 256 277
Shares-diluted (in shares) 67,011 67,149 67,920
Diluted EPS (in dollars per share) $ 6.47 $ 4.54 $ 3.97
v3.25.0.1
Commitments and Contingencies (Details)
$ in Millions
Dec. 31, 2024
USD ($)
item
Dec. 26, 2023
USD ($)
item
Commitments and Contingencies    
Estimated cost to complete capital project commitments (in dollars) | $ $ 243.6 $ 237.4
Number of suppliers providing most of the company's beef | item 4  
Lease Agreements    
Commitments and Contingencies    
Number of leases guarantees entity contingently liable | item 7 7
Lease Agreements | Maximum    
Commitments and Contingencies    
Contingently liable amount | $ $ 9.4 $ 10.4
v3.25.0.1
Share-based Compensation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Share-based Compensation      
Share-based compensation expense $ 47,055 $ 34,230 $ 36,663
Labor expense      
Share-based Compensation      
Share-based compensation expense 16,277 11,470 10,656
General and Administrative Expense [Member]      
Share-based Compensation      
Share-based compensation expense $ 30,778 $ 22,760 $ 26,007
v3.25.0.1
Share-based Compensation, RSU and PSU (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Jan. 08, 2024
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Restricted Stock Units (RSUs) [Member]        
Share-based Compensation        
Number of common shares that a holder would receive upon satisfaction of the vesting requirement (in shares)   1    
Shares        
Outstanding at the beginning of the period (in shares)   442,327    
Granted (in shares)   306,099    
Forfeited (in shares)   (22,733)    
Vested (in shares)   (314,803)    
Outstanding at the end of period (in shares)   410,890 442,327  
Weighted-Average Grant Date Fair Value        
Outstanding at the beginning of the period (in dollars per share)   $ 98.41    
Granted (in dollars per share)   158.64    
Forfeited (in dollars per share)   123.05    
Vested (in dollars per share)   99.1    
Outstanding at the end of the period (in dollars per share)   $ 141.43 $ 98.41  
Weighted-Average Remaining Contractual Term (years)        
Weighted-Average Remaining Contractual Term   10 months 24 days    
Aggregate Intrinsic Value        
Outstanding at the end of the period (in dollars)   $ 74,052    
Unrecognized compensation cost        
Unrecognized compensation cost of unvested stock awards (in dollars)   $ 25,100    
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards   10 months 24 days    
Share-based Compensation, other disclosures        
Intrinsic value of awards vested (in dollars)   $ 49,900 $ 37,800 $ 37,100
Excess tax benefit recognized within the income tax provision   $ 4,400 $ 1,700 400
Restricted Stock Units (RSUs) [Member] | Minimum [Member]        
Share-based Compensation, other disclosures        
Vesting period   1 year    
Restricted Stock Units (RSUs) [Member] | Maximum [Member]        
Share-based Compensation, other disclosures        
Vesting period   5 years    
Performance Shares [Member]        
Share-based Compensation        
Number of common shares that a holder would receive upon meeting a performance obligation and vesting requirement (in shares)   1    
Shares        
Outstanding at the beginning of the period (in shares)   35,700    
Granted (in shares)   28,600    
Incremental Performance Shares (in shares)   9,274    
Forfeited (in shares)   0    
Vested (in shares) (41,000) (43,274)    
Outstanding at the end of period (in shares)   30,300 35,700  
Weighted-Average Grant Date Fair Value        
Outstanding at the beginning of the period (in dollars per share)   $ 94.61    
Granted (in dollars per share)   118.3    
Incremental Performance Shares (in dollars per share)   94.17    
Forfeited (in dollars per share)   0    
Vested (in dollars per share)   94.17    
Outstanding at the end of the period (in dollars per share)   $ 117.46 $ 94.61  
Weighted-Average Remaining Contractual Term (years)        
Weighted-Average Remaining Contractual Term   1 month 6 days    
Aggregate Intrinsic Value        
Outstanding at the end of the period (in dollars)   $ 5,460    
Unrecognized compensation cost        
Unrecognized compensation cost of unvested stock awards (in dollars)   $ 100    
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards   1 month 6 days    
Share-based Compensation, other disclosures        
Intrinsic value of awards vested (in dollars)   $ 6,400 $ 3,300 $ 5,400
v3.25.0.1
Share-based Compensation - PSU (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 08, 2024
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Share-based Compensation        
Expense compensation   $ 47,055 $ 34,230 $ 36,663
Restricted Stock Units (RSUs) [Member]        
Share-based Compensation        
Intrinsic value of awards vested (in dollars)   $ 49,900 37,800 37,100
Vested (in shares)   314,803    
Granted (in shares)   306,099    
Unrecognized compensation cost of unvested stock awards (in dollars)   $ 25,100    
Unrecognized Compensation Cost Recognized Weighted Average Period   10 months 24 days    
Excess tax benefit recognized within the income tax provision   $ 4,400 1,700 400
Restricted Stock Units (RSUs) [Member] | Minimum [Member]        
Share-based Compensation        
Vesting period   1 year    
Restricted Stock Units (RSUs) [Member] | Maximum [Member]        
Share-based Compensation        
Vesting period   5 years    
Performance Shares [Member]        
Share-based Compensation        
Intrinsic value of awards vested (in dollars)   $ 6,400 $ 3,300 $ 5,400
Vested (in shares) 41,000 43,274    
Granted (in shares)   28,600    
Incremental Performance Shares (in shares)   9,274    
Unrecognized compensation cost of unvested stock awards (in dollars)   $ 100    
Unrecognized Compensation Cost Recognized Weighted Average Period   1 month 6 days    
v3.25.0.1
Employee Benefit Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Labor Cost    
Contribution expense $ 1.6  
Labor Cost | Defined Contribution Benefit Plan    
Contribution expense 8.4 $ 7.1
General and Administrative Expense [Member]    
Contribution expense   1.5
General and Administrative Expense [Member] | Defined Contribution Benefit Plan    
Contribution expense $ 2.1 $ 1.8
v3.25.0.1
Fair Value Measurement - Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Fair value of financial instruments    
Transfer of asset levels within the fair value hierarchy $ 0  
Fair Value Measurements | Level 1    
Fair value of financial instruments    
Deferred compensation plan - assets 101,071 $ 81,316
Deferred compensation plan - liabilities $ (101,071) $ (81,222)
v3.25.0.1
Impairment and Closure Costs (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 26, 2023
USD ($)
Dec. 27, 2022
USD ($)
restaurant
Impairment and Closure Costs      
Impairment and closure, net $ 1,226 $ 275 $ 1,600
Ongoing closure costs 400 $ 300 600
Gain on sale of land and building     $ 700
Impairment and closures, Three restaurants      
Impairment and Closure Costs      
Number of restaurants | restaurant     3
Impairment and closures, Two restaurants      
Impairment and Closure Costs      
Asset Impairment Charges     $ 1,700
Number of restaurants relocated | restaurant     2
Building      
Impairment and Closure Costs      
Asset Impairment Charges $ 800    
v3.25.0.1
Related Party Transactions (Details)
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
restaurant
Dec. 26, 2023
USD ($)
restaurant
Dec. 27, 2022
USD ($)
restaurant
Franchise      
Related Party Transactions      
Number of restaurants 118 106  
Officers, directors and shareholders      
Related Party Transactions      
Number of restaurants 4 4 4
Officers, directors and shareholders | Majority-owned      
Related Party Transactions      
Number of restaurants 1 1 1
Officers, directors and shareholders | Franchise      
Related Party Transactions      
Royalities and fees received from franchise and license restaurants | $ $ 2.1 $ 2.0 $ 1.8
v3.25.0.1
Segment Information - Segment Assets Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Segment Information        
Total revenue   $ 5,373,332 $ 4,631,672 $ 4,014,919
Food and beverage   1,785,119 1,593,852 1,378,192
Labor   1,764,740 1,539,124 1,319,959
Rent   80,560 72,766 66,834
Other operating   795,657 690,848 596,305
Restaurant margin   915,777 707,964 627,501
Depreciation and amortization   178,157 153,202 137,237
Segment assets $ 3,190,779 3,190,779 2,793,376  
Capital expenditures   354,341 347,034 246,121
Restaurant and other sales        
Segment Information        
Total revenue 114,700 5,341,853 4,604,554 3,988,791
Texas Roadhouse        
Segment Information        
Food and beverage   1,691,302 1,514,421 1,306,658
Labor   1,646,437 1,438,802 1,239,257
Rent   72,060 65,519 60,837
Other operating   737,909 641,923 555,935
Restaurant margin   864,999 671,158 600,197
Depreciation and amortization   149,934 126,719 112,546
Segment assets 2,488,679 2,488,679 2,290,213  
Capital expenditures   304,259 306,599 204,662
Texas Roadhouse | Restaurant and other sales        
Segment Information        
Total revenue   5,012,707 4,331,823 3,762,884
Bubba's 33        
Segment Information        
Food and beverage   83,701 71,101 66,237
Labor   108,306 92,241 76,178
Rent   7,677 6,624 5,712
Other operating   51,502 43,287 36,629
Restaurant margin   46,422 33,942 26,934
Depreciation and amortization   16,447 14,210 13,012
Segment assets 255,320 255,320 232,086  
Capital expenditures   38,557 27,908 30,625
Bubba's 33 | Restaurant and other sales        
Segment Information        
Total revenue   297,608 247,195 211,690
Other        
Segment Information        
Food and beverage   10,116 8,330 5,297
Labor   9,997 8,081 4,524
Rent   823 623 285
Other operating   6,246 5,638 3,741
Restaurant margin   4,356 2,864 370
Depreciation and amortization   11,776 12,273 11,679
Segment assets $ 446,780 446,780 271,077  
Capital expenditures   11,525 12,527 10,834
Other | Restaurant and other sales        
Segment Information        
Total revenue   $ 31,538 $ 25,536 $ 14,217
v3.25.0.1
Segment Information - Consolidated (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 26, 2023
Dec. 27, 2022
Segment Information      
Restaurant margin $ 915,777 $ 707,964 $ 627,501
Revenue:      
Total revenue 5,373,332 4,631,672 4,014,919
Costs and expenses:      
Pre-opening 28,090 29,234 21,883
Depreciation and amortization 178,157 153,202 137,237
Impairment and closure, net 1,226 275 1,600
General and administrative 223,264 198,382 172,712
Income from operations 516,519 353,989 320,197
Franchise royalties and fees      
Revenue:      
Total revenue $ 31,479 $ 27,118 $ 26,128
v3.25.0.1
Subsequent Events (Details)
$ in Millions
Jan. 01, 2025
USD ($)
restaurant
Feb. 19, 2025
USD ($)
Mar. 17, 2022
USD ($)
Subsequent Events      
Share Repurchase Program, Authorized, Amount     $ 300.0
Previous Share Repurchase Program [Member]      
Subsequent Events      
Share Repurchase Program, Authorized, Amount     $ 300.0
Subsequent Events | Share Repurchase Program [Member]      
Subsequent Events      
Share Repurchase Program, Authorized, Amount   $ 500.0  
Subsequent Events | Thirteen franchise restaurants      
Subsequent Events      
Number of restaurants acquired | restaurant 13    
Purchase price paid $ 78.0