Forensic Analysis · Retail / Consumer Discretionary · as of Aug 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.
A · High-quality, lumpy growth
Forensic grade
Safe
Financial health
8.3
Distress distance
Clean
Earnings quality
3
Forensic signals
33.0
P / E (ttm)
27.8%
ROE
$13.7B
Market cap
1.44%
Dividend yield
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 (red flags, auditor quality, say on pay, board independence). 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 an A (High-quality, lumpy growth) forensic quality grade, and its balance-sheet distress test reads 8.3, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+17.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +17.7% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +12% against +9% in revenue and PP&E up +12% against revenue +9%. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 26% of net operating assets, diverging from the balance-sheet accrual read.
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. That ratio has actually been EASING, not tightening further — down from ~127% of free cash flow a few years back. Counting the $48M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 111%.
$1M
FY2020–FY2020
Goodwill impairments.Took $1M of goodwill writedowns across 1 year (FY2020 ($1M)) — about 4% of net income over the span. Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$5.88B
Revenue Growth YoY+9.4%
Revenue CAGR (3yr)+13.5%
Net Margin6.9%
Free Cash Flow$342.1M
Return on Equity27.8%
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?