Texas Roadhouse Is Raising Prices After Its Latest Earnings Report
If you've noticed that the most affordable steak you can order at Texas Roadhouse and your weekly tradition of cactus blossoms are looking a little pricier these days, your eyes aren't deceiving you. In a press release following a quarterly earnings call, the chain restaurant announced that going forward diners will be paying a little more for their meals.
With inflation-fueled price increases not slowing down, it's unsurprising that Texas Roadhouse would up food costs. However, it's starting to become a pattern that we doubt any fan loves. This most recent hike comes only eight months after Texas Roadhouse raised its prices for a third time in under a year, marking a fourth price increase in only two years. Though the steadily rising costs aren't great for consumers, the new increase won't be as drastic on your wallet: This time the hike is only 0.9%, a small amount compared to the 2.2% surge in March 2024. While the previous announcement came a few weeks before the menu changes, this latest increase actually went into effect in late September.
Why is Texas Roadhouse raising its prices yet again?
With restaurants like McDonald's and Cracker Barrel seeing a decrease in traffic over the past year, one would assume that Texas Roadhouse's increasingly higher prices stem from being in the same boat. However, the casual dining chain is experiencing a very different reality.
The company's fiscal year has been anything but dismal — compared to the third quarter of 2023, Texas Roadhouse's restaurant sales increased by 8.5%, while its domestic franchise sales saw a 7.2% increase. Rather than making up for lost earnings, the new prices are meant to combat the rise of inflation, wages, income tax rates, and other expenditures.
Despite the higher costs for the company, it's still expanding. The chain has opened 22 company restaurants and nine franchise operations in the past year, with plans set in stone to open more next year. "Looking ahead to 2025, we once again have a strong development pipeline and as of today already have 10 of our new company restaurants under construction," said Jerry Morgan, CEO of Texas Roadhouse in the press release.