Stock fact sheet · data as of
Texas Roadhouse, Inc. (TXRH): fair value, margin of safety and Wheel Score
Consumer Cyclical · Restaurants · United States · Blend
Is TXRH undervalued?
Texas Roadhouse, Inc. (TXRH) closed at 166.64 on 16 Oct 2026, 34% above the GLS average fair value of 124.53. 5 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 43.11 while Graham Growth gives 235.27. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TXRH under Blend.
Nine valuation models for TXRH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 70.51 | -58% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 57.94 | -65% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 235.27 | +41% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 93.58 | -44% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 178.97 | +7% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 179.22 | +8% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 192.29 | +15% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 43.11 | -74% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 69.88 | -58% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -24.62 | -115% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 211.56 | +27% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TXRH scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 16.7%, ROE 27.8%, ROA 11.4% - with debt at 0.67 times equity and a free-cash-flow yield of 3.7%.
The dividend yield is 1.76% at a payout ratio of 46%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Food and Beverage 100%, Franchise royalties 0%, Franchise fees 0% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 4/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 16.7% |
|---|---|---|---|
| GLS Moat | 6.3 / 10 | ROE | 27.8% |
| Debt / equity | 0.67 | ROA | 11.4% |
| Free-cash-flow yield | 3.7% | Payout ratio | 46% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 4 / 10 |
Wheel Score 64: Fair
TXRH scores 64 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 16/20, Moat 9/15, Premium 20/20, Stability 19/20. Value (0/25) is where the points are missing.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 13,714 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.4M shares a day on a market cap of $10.9B, with a beta of 0.81; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -34% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 9 / 15 | moat 6.3/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 19 / 20 | 1.4M shares/day, $10.9B cap, beta 0.81 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Restaurants
The 12 companies below are the closest to Texas Roadhouse, Inc. by market cap within the Restaurants industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DPZ Domino's Pizza, Inc. | 303.09 | 307.19 | +1% | 77Good | $10.0B |
| EAT Brinker International, Inc. | 204.91 | 291.64 | +30% | 90Prime | $8.6B |
| YUMC Yum China Holdings, Inc. | 43.20 | 69.88 | +38% | 91Prime | $14.8B |
| BROS Dutch Bros Inc. | 41.10 | 24.65 | -67% | 54Fair | $7.7B |
| CAVA CAVA Group, Inc. | 55.40 | 13.31 | -316% | 56Fair | $6.5B |
| CAKE The Cheesecake Factory Incorporated | 116.59 | 93.42 | -25% | 57Fair | $5.8B |
| DRI Darden Restaurants, Inc. | 214.31 | 160.14 | -34% | 62Fair | $24.2B |
| QSR Restaurant Brands International Inc. | 72.41 | 69.84 | -4% | 70Good | $25.3B |
| WING Wingstop Inc. | 122.90 | 137.21 | +10% | 69Good | $3.3B |
| CMG Chipotle Mexican Grill, Inc. | 30.56 | 26.14 | -17% | 71Good | $38.7B |
| YUM Yum! Brands, Inc. | 146.69 | 140.99 | -4% | 70Good | $40.0B |
| SHAK Shake Shack Inc. | 68.77 | 27.84 | -147% | 54Fair | $2.8B |
⚖ Compare TXRH with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about TXRH
Is TXRH undervalued right now?
No: at 166.64 the stock trades 34% above the GLS average fair value of 124.53 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TXRH and what does it mean?
TXRH scores 64 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TXRH?
124.53 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Texas Roadhouse, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TXRH have listed options, and how liquid are they?
Yes. The nightly snapshot found 848 listed contracts with 13,714 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.