📊 AI Stock Rating — Summary

Texas Roadhouse (TXRH) reported Q3 2025 revenue of approximately $1.44 billion, translating into a net income of $83.17 million and an EPS of $1.25. The company demonstrated a net margin of around 5.8% while generating a free cash flow (FCF) of $35.72 million. Year-over-year growth metrics highlight a solid operational performance. The company's balance sheet was robust with total assets of $3.27 billion and liabilities of $1.79 billion, leading to an equity position of $1.48 billion. Net debt was reported at $825.57 million, indicating moderate leverage relative to equity. Operational cash flows were strong at $128.24 million, with capital expenditures totaling $92.52 million. Shareholder returns were bolstered by $45.12 million in dividends alongside share repurchases valued at $10.26 million. Analysts target a stock price between $175 and $210 with a median estimate of $190, suggesting potential upside from the valuation context date. Overall, TXRH is positioned with sound growth prospects, profit generation, and reasonable financial leverage, aligning with positive analyst forecasts.

AI Score Breakdown

Revenue Growth — Score: 8/10

Revenue growth appears stable with strong YoY performance; main drivers include consistent restaurant sales growth.

Profitability — Score: 7/10

The net margin of 5.8% and stable EPS growth indicate effective operational management and efficiency.

Cash Flow Quality — Score: 6/10

FCF generation is modest but positive, and dividends are steadily paid; liquidity is supported by robust operating cash flow.

Leverage & Balance Sheet — Score: 6/10

Moderate net debt relative to equity implies manageable financial leverage; the balance sheet is solid.

Shareholder Returns — Score: 7/10

Dividend payments are consistent, bolstered by share buybacks. Analysts' price targets and previous market appreciation signal favorable sentiment.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets suggest room for appreciation, and current metrics indicate the stock is fairly valued relative to industry peers.

⚠ AI-generated — informational only, not financial advice.