Texas Roadhouse Just Raised Its Prices Again—Here's How Much You'll Pay to Dine
The cost of dining out at America's most iconic restaurant brand keeps creeping up. Texas Roadhouse announced yesterday that it just raised prices across its entire menu—marking the fourth increase at the beloved steakhouse chain over past two years.
But before you lose your appetite at the thought of paying ever more for the chain's juicy hand-cut steaks and signature margaritas, you should also know that the company's latest announcement is a bit easier to swallow than previous increases. Prices are going up by less than 1%.
"We believe the 0.9% menu price increase will allow us to maintain our value proposition and our traffic and mix levels," Texas Roadhouse CFO Chris Monroe said during the company's earnings call on Thursday. Monroe cited "lower than forecasted beef costs" as a reason for the modest uptick in menu pricing.
The Louisville, Ky.-based chain has wrangled with higher costs for both beef and labor in recent months, while still trying to maintain its reputation as a value-driven dining option. Texas Roadhouse previously raised prices by 2.2% this past spring, following earlier hikes of 2.7% in October 2023 and 2.2% in April 2023.
Company executives said the new pricing went into effect in late September, meaning that customers have been paying the higher rate for a few weeks already.
Following the changes, the listed price of a 12-ounce New York strip at Texas Roadhouse in Teterboro, N.J., is now $23.99—a full $2 more than it cost last September. The most expensive steak, the 23-ounce porterhouse t-bone, is also up $2 over the past year to $34.99, while the chain's cheapest cut and #1 top-seller, the 6-ounce sirloin, is up 50 cents to $14.49.
Though U.S. consumers have generally bemoaned the rising cost of dining out—with some McDonald's customers, in particular, even calling for a boycott of the increasingly expensive fast-food chain—the repeated price hikes at Texas Roadhouse haven't negatively impacted sales or slowed the popular steakhouse chain's continued growth.
Quite the contrary, in fact. In the weeks following the latest increase, business has been booming, according to the company. "Our traffic actually accelerated from something in the mid-4% range in September to the mid 5% range in October," Michael Bailen, the company's head of investor relations, said during yesterday's earnings call.
A recent report by foot-traffic tracker Placer.ai showed Texas Roadhouse outpacing its closest rival, LongHorn Steakhouse, with 5.9% traffic growth during the most recent quarter, compared to 4%.
Sales growth also remained positive, with comparable same-store results up 8.3% during the quarter. Texas Roadhouse has generated over $3.9 billion in revenue so far in 2024, up 13.5% from last year. The company also said it's planning to open around 30 new restaurants in 2025, including about 20 eponymous steakhouses in addition to new locations for sister brands Bubba's 33 and Jagger's.
"We're seeing good results from our guests, not hearing of any pushback on the menu pricing that we have taken," Bailen said. "So I believe we're still screaming value."
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