Texas Roadhouse posts 7.1% comp sales as beef inflation cools to 6.2%
Q1 commodity inflation eased to 6.2% from 9.5% in Q4, beating guidance. Margins recovered to 16.3% and shares jumped 15%. Consumers trading down from retail steak (-2.4%) to chicken (+2%) and pork (+0.4%) is freeing beef supply for restaurants. 2026 inflation outlook lowered to 6-7%.
Texas Roadhouse Q1 commodity inflation eased to 6.2%, beating expectations; lowered 2026 outlook to 6-7%. Same-store sales grew 7.1%, margins held at 16.3%, stock jumped 15%. Consumers trading down from steak to chicken/pork freeing restaurant beef supply.
Why this matters
Reinforces Texas Roadhouse's momentum after the same 7.1% SSSG print tied to its digital backbone. Margin recovery and cooling beef costs validate the operating model as retail trade-down frees beef supply for restaurants.
Retail-company signals steady at 214 over 90 days, with Texas Roadhouse a standout on margin recovery.