Forensic Analysis · Restaurants · as of Nov 9, 2026
Texas Roadhouse, Inc. (TXRH)
A forensic read on Texas Roadhouse, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Grey Zone
Financial health
2.1
Distress distance
Clean
Earnings quality
2
Forensic signals
28.8%
ROE
9.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Texas Roadhouse, Inc. earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.1, placing it in the Grey zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+10.5%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +10.5% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $89.0M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by inventory up +12% against +9% in revenue and PP&E up +12% against revenue +9%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 26% of net operating assets, against an accruals ratio of 10.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
97% of FCF
FY2025
Shareholder returns.Returned $331M to shareholders (buybacks + dividends) in FY2025 — 97% of free cash flow. Right at the limit of what free cash flow covers — little room before it's funded by debt or the balance sheet. Counting the $48M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 111%.
Key fundamentals
Latest Revenue$5.88B
Revenue Growth YoY+9.4%
Revenue CAGR (2yr)+12.7%
Net Margin6.9%
Free Cash Flow$342.1M
Return on Equity28.8%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Texas Roadhouse, Inc.'s actual 10-K/10-Q/8-K filings?