Texas Roadhouse Inc

Texas Roadhouse is quietly testing first-party delivery at a few locations, according to Deutsche Bank, marking a potential shift for a chain that has long resisted the delivery trend. The pilot uses white-label fulfillment via DoorDash, with menu prices consistent with in-restaurant and a $5.50 delivery fee plus tip passed through to the provider to remain margin neutral. Analyst Lauren Silberman noted the test spans suburban, urban, and tourist locations, but does not expect a nationwide expansion near-term given strong organic to-go growth. The move follows a similar path to Olive Garden, which launched first-party delivery via Uber Direct and saw about half of its delivery mix prove incremental. Texas Roadhouse reported average weekly sales of $174,151 in Q1 2026, with to-go sales of $25,374, and has posted 61 consecutive quarters of same-store sales growth outside of 2020.

Shake Shack and Texas Roadhouse present contrasting investment cases as dining habits shift in 2026. Shake Shack, a fast-casual chain with 390 company-operated and 289 licensed locations, grew revenue nearly 15% to about $1.5 billion in fiscal 2025, with net income of just over $45.7 million and a net margin of roughly 3.2%. Texas Roadhouse, a casual-dining operator with 816 mostly company-owned restaurants, reported revenue of nearly $5.9 billion, up about 9.5%, and net income close to $405.6 million, yielding a net margin of roughly 6.9%. Shake Shack trades at a forward price-to-earnings ratio of 52.4 times and a price-to-sales ratio of 1.6 times, while Texas Roadhouse trades at 29.6 times forward earnings and 2.1 times sales. Analysts expect Shake Shack sales to grow nearly 16% in 2026 with flat net income, while Texas Roadhouse sales are seen rising about 11% with declining net margins. The article concludes that Shake Shack's growth and lower price-to-sales ratio may offer better long-term value despite its higher earnings multiple.