Texas Roadhouse, Inc. Q1 FY2026 earnings call

• Beverage mix: Discussed pricing, mix from alcohol and to-go business. - Bubba's brand: Working on growth, evaluating smaller prototypes, excited about brand and energy. - Technology: Handhelds for enhancing guest experience, accuracy improvement. - Labor productivity: Expecting continued trends, part benefit from to-go. - Restaurant margins: Expecting leverage from traffic trends and pricing flow through. - Off-prem business: Grown due to execution, ease of ordering, revamped order guide, operator dedication.

For beverages: In Q1, pricing was 3.1%, check was up 2.6%, about 50 basis points of negative mix from alcohol category (improving) and to-go business growing faster than dine-in (lower average check with less beverage attachment). For Bubba's: Focus on brand growth, evaluating smaller prototypes, had conversions for profitability. No specific absolute revenue figures provided for segments but detailed on mix and brand performance.

• Q1 pricing was 3.1%, Q2 and Q3 will have 3.6%, Q4 will be 1.9 plus additional if chosen. - Commodity inflation expectation for Q2 is 7% - 8%, previously expected very high single digits. - Beef cost cycle is expected to have relief over time, will be patient in determining structural vs cyclical higher costs.

• Weather impact on business, as seen in Q1 with negative weather impact offset by holiday. - Potential demand destruction at retail due to higher beef prices leading to shift to other proteins. - Uncertainty in beef cost cycle affecting pricing cadence and COGS line.

Q: Question on beverages pricing and mix, A: 3.1% pricing in Q1, 50 basis points negative mix from alcohol and to-go; Q: Question on Bubba's growth unlocks, A: Working on brand growth, evaluating smaller prototypes, using same game plan as Texas Roadhouse; Q: Question on consumer and gas prices, A: No correlation seen with gas prices, value proposition benefits; Q: Question on COGS and beef consumption, A: Beef cost pressure stabilized, around 10 basis points impact; Q: Question on handhelds and pricing cadence, A: Handhelds for efficiency, Q2 and Q3 pricing 3.6%, Q4 1.9 plus additional; Q: Question on labor productivity, A: Expecting further productivity gains, part benefit from to-go; Q: Question on restaurant margins, A: Expect leverage from traffic and pricing; Q: Question on off-prem business, A: Grown due to execution, ease of ordering; Q: Question on COGS inflation outlook, A: Q2 expectation 7% - 8%, change due to beat; Q: Question on Bubba's new unit volumes, A: Excited about brand, using same game plan; Q: Question on pricing vs peers, A: Conservative approach, lower than most steakhouse peers; Q: Question on carryout marketing and margins, A: Brand markets itself, to-go margin beneficial; Q: Question on beef cost structure, A: Beef cycle is cyclical, expect relief over time; Q: Question on labor hours and retention, A: Retention and technology contribute to labor productivity; Q: Question on weather impact, A: Weather had 80 basis point negative impact offset by holiday