Texas Roadhouse, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
TXRH$183.88-4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-07-01; filed 2025-08-08.
0001558370-25-010861
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001104659-25-108178
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 87 current paragraphs.
46 unchanged; 38 reworded; 3 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 30 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Net income decreased $1.2 million or 1.5% to $83.2 million in Q3 2025 compared to $84.4 million in Q3 2024 as the increase in revenue was more than offset by increases in food and beverage costs and depreciation and amortization expenses. In addition, income tax expense decreased due to the decrease in profitability. Diluted earnings per share decreased 0.8% to $1.25 in Q3 2025 from $1.26 in Q3 2024 due to the decrease in net income partially offset by the impact of share repurchases.
Current report
Our effective tax rate was 13.1% in Q3 2025 compared to 16.7% in Q3 2024 and was 14.4% in 2025 YTD compared to 15.1% in 2024 YTD. The decreases in the tax rates were driven by an increase in the impact of the FICA tip tax credit.
Current report
expenditures of approximately $400 million, including the purchase of our Support Center. In 2026, we expect capital expenditures of approximately $400 million, driven primarily by an increase in new store openings.
Removed paragraphs (3)
Previous report
Net income increased $3.9 million or 3.3% to $124.1 million in Q2 2025 compared to $120.1 million in Q2 2024 primarily due to higher restaurant margin dollars, as described below, partially offset by higher depreciation and amortization expenses and higher general and administrative expenses. Diluted earnings per share increased 4.0% to $1.86 in Q2 2025 from $1.79 in Q2 2024 due to the increase in net income and the impact of share repurchases.
Previous report
Other sales primarily include the net impact of the amortization of third-party gift card fees and gift card breakage income and content revenue related to our tabletop kiosk devices. The net impact of these amounts was a $3.9 million and $3.1 million reduction to other sales in Q2 2025 and Q2 2024, respectively, and a $10.0 million and $9.2 million reduction to other sales in 2025 YTD and 2024 YTD, respectively.
Previous report
Our effective tax rate was 14.9% in Q2 2025 compared to 15.0% in Q2 2024 and was 14.8% in 2025 YTD compared to 14.5% in 2024 YTD. The decrease in the tax rate in Q2 2025, as compared to Q2 2024, was primarily due to an increase in the impact of the FICA tip tax credit partially offset by a reduction in the stock compensation benefit. The increase in 2025 YTD, as compared to 2024 YTD, was primarily due a reduction in the stock compensation benefit.
Reworded paragraphs (38)
Previous wording
Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment. Our late founder, W. Kent Taylor, started the Company in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana. Since then, we have grown to three concepts with 797 restaurants in 49 states, one U.S. territory, and ten foreign countries. As of July 1, 2025, our 797 restaurants included:
Current wording
Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment. Our late founder, W. Kent Taylor, started the Company in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana. Since then, we have grown to three concepts with 806 restaurants in 49 states, one U.S. territory, and ten foreign countries. As of September 30, 2025, our 806 restaurants included:
Previous wording
Throughout this report, the 13 weeks ended July 1, 2025 and June 25, 2024, are referred to as Q2 2025 and Q2 2024, respectively. The 26 weeks ended July 1, 2025 and June 25, 2024, are referred to as 2025 YTD and 2024 YTD, respectively. Fiscal year 2025 will be 52 weeks in length, with the quarters 13 weeks in length. Fiscal year 2024 was 53 weeks in length, with the fourth quarter 14 weeks in length.
Current wording
Throughout this report, the 13 weeks ended September 30, 2025 and September 24, 2024, are referred to as Q3 2025 and Q3 2024, respectively. The 39 weeks ended September 30, 2025 and September 24, 2024, are referred to as 2025 YTD and 2024 YTD, respectively. Fiscal year 2025 will be 52 weeks in length, with the quarters 13 weeks in length. Fiscal year 2024 was 53 weeks in length, with the fourth quarter 14 weeks in length.
Previous wording
Total revenue increased $170.9 million or 12.7% to $1,512.1 million in Q2 2025 compared to $1,341.2 million in Q2 2024 primarily due to an increase in store weeks and comparable restaurant sales. Store weeks and comparable restaurant sales increased 7.2% and 5.8%, respectively, at company restaurants in Q2 2025 compared to Q2 2024. The increase in store weeks was due to the acquisition of franchise restaurants and new store openings. The increase in comparable restaurant sales was due to an increase in guest traffic along with an increase in per person average check.
Current wording
Total revenue increased $163.3 million or 12.8% to $1,436.3 million in Q3 2025 compared to $1,273.0 million in Q3 2024 primarily due to an increase in store weeks and comparable restaurant sales. Store weeks and comparable restaurant sales increased 6.8% and 6.1%, respectively, at company restaurants in Q3 2025 compared to Q3 2024. The increase in store weeks was due to new store openings and the acquisition of franchise restaurants. The increase in comparable restaurant sales was due to an increase in guest traffic along with an increase in per person average check.
Previous wording
Restaurant margin dollars increased $14.7 million or 6.1% to $257.3 million in Q2 2025 compared to $242.6 million in Q2 2024 primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased to 17.1% in Q2 2025 compared to 18.2% in Q2 2024. The decrease in restaurant margin, as a percentage of restaurant and other sales, was primarily due to commodity inflation of 5.2% and wage and other labor inflation of 3.8% partially offset by higher sales.
Current wording
Restaurant margin dollars increased $2.2 million or 1.1% to $204.3 million in Q3 2025 compared to $202.1 million in Q3 2024 primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased to 14.3% in Q3 2025 compared to 16.0% in Q3 2024. The decrease in restaurant margin, as a percentage of restaurant and other sales, was primarily due to commodity inflation of 7.9% and wage and other labor inflation of 3.9% partially offset by higher sales.
Previous wording
In addition, during the 13 weeks ended July 1, 2025, capital allocation spend included capital expenditures of $92.5 million, franchise acquisitions of $15.5 million, dividends of $45.1 million, and repurchases of common stock of $9.8 million.
Current wording
Capital allocation spend included capital expenditures of $128.9 million, dividends of $45.1 million, and repurchases of common stock of $40.0 million.
Previous wording
Restaurant and other sales increased 12.8% in Q2 2025 compared to Q2 2024 and 11.2% in 2025 YTD compared to 2024 YTD. The following table summarizes certain key drivers and/or attributes of restaurant sales at company restaurants for the periods presented. Company restaurant count activity is shown in the restaurant unit activity table above.
Current wording
Restaurant and other sales increased 12.9% in Q3 2025 compared to Q3 2024 and 11.8% in 2025 YTD compared to 2024 YTD. The following table summarizes certain key drivers and/or attributes of restaurant sales at company restaurants for the periods presented. Company restaurant count activity is shown in the restaurant unit activity table above.
Previous wording
The increase in restaurant sales for Q2 2025 and 2025 YTD was primarily due to an increase in store weeks and an increase in comparable restaurant sales. The increase in store weeks was driven by the acquisition of franchise restaurants and new store openings. The increase in comparable restaurant sales was driven by an increase in guest traffic counts along with an increase in our per person average check as shown in the table below.
Current wording
The increase in restaurant sales for Q3 2025 and 2025 YTD was primarily due to an increase in store weeks and an increase in comparable restaurant sales. The increase in store weeks was driven by new store openings and the acquisition of franchise restaurants. The increase in comparable restaurant sales was driven by an increase in guest traffic counts along with an increase in our per person average check as shown in the table below.
Previous wording
To-go sales as a percentage of restaurant sales were 13.3% in Q2 2025 compared to 12.6% in Q2 2024. To-go sales as a percentage of restaurant sales were 13.4% in 2025 YTD compared to 12.8% in 2024 YTD.
Current wording
To-go sales as a percentage of restaurant sales were 13.6% in Q3 2025 compared to 12.7% in Q3 2024. To-go sales as a percentage of restaurant sales were 13.5% in 2025 YTD compared to 12.8% in 2024 YTD.
Previous wording
Per person average check includes the benefit of a menu price increase of approximately 1.4% implemented in Q2 2025 and menu price increases of approximately 2.2% and 0.9% implemented in Q2 2024 and Q4 2024, respectively.
Current wording
Per person average check includes the benefit of a menu price increase of approximately 1.4% implemented in Q2 2025 and menu price increases of approximately 2.2% and 0.9% implemented in Q2 2024 and Q4 2024, respectively. In addition, we implemented a menu price increase of approximately 1.7% at the beginning of Q4 2025.
Previous wording
In 2025 YTD, we opened nine Texas Roadhouse company restaurants and three Bubba’s 33 company restaurants. In 2025, we expect store week growth of approximately 5% across all concepts, including a benefit of approximately 2% from the acquisitions of 17 domestic franchise restaurants in 2025 YTD, offset by the lapping of the additional week in 2024.
Current wording
In 2025 YTD, we opened 13 Texas Roadhouse company restaurants, five Bubba’s 33 company restaurants, and one Jaggers company restaurant. In 2025, we expect store week growth of approximately 5% across all concepts, including a benefit from franchise acquisitions in 2025 YTD, offset by the lapping of the additional week in 2024. In 2026, we expect store week growth of 5% to 6% across all concepts, including the impact of franchise acquisitions.
Previous wording
Royalties and franchise fees increased by $0.5 million or 6.9% in Q2 2025 compared to Q2 2024 and increased by $0.8 million or 5.2% in 2025 YTD compared to 2024 YTD. The increases were due to increased royalties related to our royalty-based retail products and comparable franchise restaurant sales growth partially offset by decreased royalties related to the franchise stores that were acquired.
Current wording
Royalties and franchise fees decreased by $0.5 million or 6.3% in Q3 2025 compared to Q3 2024 and increased by $0.3 million or 1.2% in 2025 YTD compared to 2024 YTD. The decrease in Q3 2025 compared to Q3 2024 was due to decreased royalties related to the franchise stores that were acquired. The increase in 2025 YTD compared to 2024 YTD was due to increased royalties related to our royalty-based retail products that rolled out in 2024 partially offset by decreased royalties related to the franchise stores that were acquired.
Previous wording
Food and beverage costs, as a percentage of restaurant and other sales, increased to 34.0% in Q2 2025 compared to 32.7% in Q2 2024 andincreased to 34.0% in 2025 YTD compared to 33.3% in 2024 YTD. The increases were primarily driven by commodity inflation of 5.2% in Q2 2025 and 3.7% in 2025 YTD, primarily driven by higher beef costs, and unfavorable shifts within the menu, partially offset by the benefit of a higher average guest check.
Current wording
Food and beverage costs, as a percentage of restaurant and other sales, increased to 35.8% in Q3 2025 compared to 33.5% in Q3 2024 andincreased to 34.6% in 2025 YTD compared to 33.4% in 2024 YTD. The increases were primarily driven by commodity inflation of 7.9% in Q3 2025 and 5.1% in 2025 YTD, primarily driven by higher beef costs and shifts within the menu, partially offset by the benefit of a higher average guest check.
Previous wording
In 2025, we expect commodity inflation of approximately 5%, including the estimated impact of tariffs, with prices locked for approximately 65% of our remaining forecasted costs and the remainder subject to market rates.
Current wording
In 2025, we expect commodity inflation of approximately 6% with prices locked for approximately 80% of our remaining forecasted costs and the remainder subject to market rates. In 2026, we expect commodity inflation of approximately 7%.
Previous wording
Restaurant labor expenses, as a percentage of restaurant and other sales, increased to 32.9% in Q2 2025 compared to 32.8% in Q2 2024 and increased to 33.1% in 2025 YTD compared to 32.7% in 2024 YTD. The increases were primarily driven by wage and other labor inflation of 3.8% in Q2 2025 and 4.2% in 2025 YTD partially offset by the benefit of a higher average guest check and labor productivity. Wage and other labor inflation was driven by higher wage and benefit expense due to labor market pressures along with increases in state-mandated minimum and tipped wage rates and increased investment in our people.
Current wording
Restaurant labor expenses, as a percentage of restaurant and other sales, decreased to 33.6% in Q3 2025 compared to 33.8% in Q3 2024 and increased to 33.3% in 2025 YTD compared to 33.0% in 2024 YTD. The decrease in Q3 2025 compared to Q3 2024 was driven by the benefit of a higher average guest check and labor productivity partially offset by wage and other labor inflation of 3.9% in Q3 2025. The increase in 2025 YTD compared to 2024 YTD was driven by wage and other labor inflation of 4.1% in 2025 YTD partially offset by the benefit of a higher average guest check and labor productivity. Wage and other labor inflation was driven by higher wage and benefit expense due to labor market pressures along with increases in state-mandated minimum and tipped wage rates and increased investment in our people.
Previous wording
In 2025, we expect our labor costs to be pressured by wage and other labor inflation of approximately 4%.
Current wording
In 2025, we expect wage and other labor inflation of approximately 4%. In 2026, we expect wage and other labor inflation of 3% to 4%.
Previous wording
Restaurant rent expense, as a percentage of restaurant and other sales, was 1.5% for all periods presented. In Q2 2025 and 2025 YTD, higher rent expense at our recently acquired restaurants and newer restaurants was offset by the increase in average unit volume.
Current wording
Restaurant rent expense, as a percentage of restaurant and other sales, was 1.6% in Q3 2025 and in Q3 2024 and was 1.6% in 2025 YTD compared to 1.5% in 2024 YTD. In Q3 2025 and 2025 YTD, higher rent expense at our recently acquired restaurants and newer restaurants was partially offset by the increase in average unit volume.
Previous wording
Restaurant other operating expenses, as a percentage of restaurant and other sales, decreased to 14.5% in Q2 2025 compared to 14.8% in Q2 2024 and decreased to 14.5% in 2025 YTD compared to 14.7% in 2024 YTD. The decreases were driven by lower general liability insurance expense of $1.8 million and $5.1 million in Q2 2025 and 2025 YTD, respectively, as compared to the prior year period, as well as lower incentive compensation expense and the increase in average unit volume. The decreases were partially offset by increases in utilities expense and credit card fee expense.
Current wording
Restaurant other operating expenses, as a percentage of restaurant and other sales, decreased to 14.7% in Q3 2025 compared to 15.1% in Q3 2024 and decreased to 14.5% in 2025 YTD compared to 14.9% in 2024 YTD. The decrease in Q3 2025 compared to Q3 2024 was driven by lower incentive compensation expense and the increase in average unit volume partially offset by higher general liability insurance expense of $1.4 million. The decrease in 2025 YTD compared to 2024 YTD was driven by lower incentive compensation expense, the increase in average unit volume, and lower general liability insurance expense of $3.7 million.
Previous wording
Pre-opening expenses were $5.5 million in Q2 2025 compared to $6.2 million in Q2 2024 and $12.3 million in 2025 YTD compared to $14.3 million in 2024 YTD. Pre-opening costs will fluctuate from quarter to quarter based on specific pre-opening costs incurred for each restaurant, the number and timing of restaurant openings, and the number and timing of restaurant managers hired.
Current wording
Pre-opening expenses were $7.4 million in Q3 2025 compared to $7.3 million in Q3 2024 and $19.7 million in 2025 YTD compared to $21.6 million in 2024 YTD. Pre-opening costs will fluctuate from quarter to quarter based on specific pre-opening costs incurred for each restaurant, the number and timing of restaurant openings, and the number and timing of restaurant managers hired.
Previous wording
Depreciation and amortization expenses, as a percentage of total revenue, increased to 3.4% in Q2 2025 compared to 3.2% in Q2 2024 and increased to 3.4% in 2025 YTD compared to 3.2% in 2024 YTD. The increases were driven by an increase in depreciation expense at our newer restaurants and an increase in intangible asset amortization expense related to the acquisition of franchise restaurants partially offset by the increase in average unit volume.
Current wording
Depreciation and amortization expenses, as a percentage of total revenue, increased to 3.7% in Q3 2025 compared to 3.5% in Q3 2024 and increased to 3.5% in 2025 YTD compared to 3.3% in 2024 YTD. The increases were driven by higher depreciation expense at our newer restaurants and intangible asset amortization expense related to the acquisition of franchise restaurants partially offset by the increase in average unit volume.
Previous wording
Impairment and closure costs, net were $0.1 million in both Q2 2025 and Q2 2024 and were $0.1 million in 2025 YTD compared to $0.3 million in 2024 YTD. Impairment and closure costs, net in all periods presented included closure costs related to restaurant relocations.
Current wording
Impairment and closure costs, net were $0.1 million in Q3 2025 compared to $0.8 million in Q3 2024 and $0.3 million in 2025 YTD compared to $1.1 million in 2024 YTD. In Q3 2025 and 2025 YTD, impairment and closure costs, net included closure costs related to restaurant relocations. In Q3 2024 and 2024 YTD, impairment and closure costs, net included costs related to the impairment of a building at a previously relocated store.
Previous wording
General and administrative expenses, as a percentage of total revenue, decreased to 4.2% in Q2 2025 compared to 4.3% in Q2 2024 and decreased to 4.0% in 2025 YTD compared to 4.2% in 2024 YTD. The decreases were driven by the increase in average unit volume and lower incentive compensation expense partially offset by higher restricted stock expense due to the long-term grant of performance based restricted stock to our executive team and a favorable legal settlement received in Q2 2024.
Current wording
General and administrative expenses, as a percentage of total revenue, decreased to 3.8% in Q3 2025 compared to 4.3% in Q3 2024 and decreased to 3.9% in 2025 YTD compared to 4.2% in 2024 YTD. The decreases were driven by the increase in average unit volume, lower incentive compensation expense, and lower restricted stock expense due to lapping the impact of the shift in the timing of our restricted stock grants from quarterly to annually.
Previous wording
Interest income, net was $1.0 million and $1.7 million in Q2 2025 and Q2 2024, respectively, and was $2.3 million and $3.1 million in 2025 YTD and 2024 YTD, respectively. The decreases were driven by decreased earnings on our cash and cash equivalents.
Current wording
Interest income, net was $0.6 million in Q3 2025 compared to $1.9 million in Q3 2024 and was $3.0 million in 2025 YTD compared to $5.0 million in 2024 YTD. The decreases were driven by decreased earnings on our cash and cash equivalents.
Previous wording
Equity income was $1.4 million in Q2 2025 compared to $0.3 million Q2 2024 and was $1.7 million in 2025 YTD compared to $0.5 million in 2024 YTD. The increases were driven by a $1.2 million gain on the acquisition of three of these affiliates in Q2 2025.
Current wording
Equity income was $0.1 million in Q3 2025 compared to $0.2 million Q3 2024 and was $1.8 million in 2025 YTD compared to $0.8 million in 2024 YTD. The increase in 2025 YTD was driven by a $1.2 million gain on the acquisition of three of these affiliates.
Previous wording
In 2025, we expect an effective tax rate of approximately 15% based on forecasted operating results.
Current wording
In 2025, we expect an effective tax rate of approximately 14.5% based on forecasted operating results. In 2026, we expect an effective tax rate of approximately 15% based on forecasted operating results.
Previous wording
The CODM uses restaurant margin as the primary measure for assessing performance of our segments. Restaurant margin (in dollars and as a percentage of restaurant and other sales) represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin is used by our CODM to evaluate core restaurant-level operating efficiency and performance, assist in the evaluation of operating trends over time, and in making capital allocation decisions. A reconciliation of income from operations to restaurant margin is included in the Results of Operations section above.
Current wording
The CODM uses restaurant margin as the primary measure for assessing performance of our segments. Restaurant margin (in dollars and as a percentage of restaurant and other sales) represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin is used by our CODM to evaluate core restaurant-level operating efficiency and performance, assist in the evaluation of operating trends over time, and in making capital allocation decisions. Capital allocation decisions include approving new store openings and the refurbishment, expansion, or relocation of existing restaurants. A reconciliation of income from operations to restaurant margin is included in the Results of Operations section above.
Previous wording
In our Texas Roadhouse reportable segment, restaurant margin dollars increased $13.0 million or 5.7% in Q2 2025 and $23.1 million or 5.2% in 2025 YTD. The increases were due to higher sales partially offset by commodity inflation and wage and other labor inflation. In addition, restaurant margin, as a percentage of restaurant and other sales, decreased to 17.1% in Q2 2025 from 18.3% in Q2 2024 and decreased to 16.9% in 2025 YTD from 17.8% in 2024 YTD. Restaurant margin percentage was primarily impacted by commodity inflation and wage and other labor inflation which was partially offset by higher sales.
Current wording
In our Texas Roadhouse reportable segment, restaurant margin dollars increased $1.4 million or 0.7% in Q3 2025 and $24.5 million or 3.9% in 2025 YTD. The increases were due to higher sales partially offset by higher food and beverage costs due to commodity inflation. In addition, restaurant margin, as a percentage of restaurant and other sales, decreased to 14.4% in Q3 2025 from 16.1% in Q3 2024 and decreased to 16.1% in 2025 YTD from 17.3% in 2024 YTD. Restaurant margin percentage was primarily impacted by commodity inflation partially offset by higher sales.
Previous wording
In our Bubba’s 33 reportable segment, restaurant margin dollars increased $1.8 million or 14.3% in Q2 2025 and $2.4 million or 9.7% in 2025 YTD. The increases were due to higher sales partially offset by commodity inflation and an increase in general liability insurance expense. In addition, restaurant margin, as a percentage of restaurant and other sales, decreased to 16.7% in Q2 2025 from 17.1% in Q2 2024 and decreased to 16.4% in 2025 YTD from 17.2% in 2024
Current wording
In our Bubba’s 33 reportable segment, restaurant margin dollars increased $0.6 million or 5.3% in Q3 2025 and $3.0 million or 8.4% in 2025 YTD. The increases were due to higher sales partially offset by higher food and beverage costs due to commodity inflation and an increase in general liability insurance expense. In addition, restaurant margin, as
Previous wording
YTD. Restaurant margin percentage was primarily impacted by the increased expenses noted above, which were partially offset by higher sales.
Current wording
a percentage of restaurant and other sales, decreased to 13.3% in Q3 2025 from 14.3% in Q3 2024 and decreased to 15.4% in 2025 YTD from 16.2% in 2024 YTD. Restaurant margin percentage was primarily impacted by the increased expenses noted above, which were partially offset by higher sales.
Previous wording
Net cash provided by operating activities was $366.0 million in 2025 YTD compared to $377.3 million in 2024 YTD. This decrease was primarily due to an unfavorable change in working capital partially offset by an increase in depreciation and amortization expense.
Current wording
Net cash provided by operating activities was $509.6 million in 2025 YTD compared to $516.1 million in 2024 YTD. This decrease was primarily due to an unfavorable change in working capital partially offset by an increase in depreciation and amortization expense and deferred income tax expense.
Previous wording
Net cash used in investing activities was $259.5 million in 2025 YTD compared to $146.2 million in 2024 YTD. The increase was primarily due to the acquisition of 17 franchise restaurants in 2025 YTD and an increase in restaurant relocations partially offset by a decrease in the timing of new company restaurant spend.
Current wording
Net cash used in investing activities was $384.2 million in 2025 YTD compared to $237.2 million in 2024 YTD. The increase was primarily due to the acquisition of 17 franchise restaurants in 2025 YTD and an increase in capital expenditures. The increase in capital expenditures is due to an increase in restaurant relocations, restaurant refurbishments and expansions, and the purchase of our Support Center for approximately $22.8 million. These increases were partially offset by a decrease in the timing of new company restaurant spend.
Previous wording
We require capital principally for the development of new company restaurants, the refurbishment or relocation of existing restaurants, and the acquisition of franchise restaurants, as applicable. We either lease our restaurant site locations under operating leases for periods of five to 30 years (including renewal periods) or purchase the land when appropriate. As of July 1, 2025, we had developed 155 of the 695 company restaurants on land that we own.
Current wording
We require capital principally for the development of new company restaurants, the refurbishment or relocation of existing restaurants, and the acquisition of franchise restaurants, as applicable. We either lease our restaurant site locations under operating leases for periods of five to 30 years (including renewal periods) or purchase the land when appropriate. As of September 30, 2025, we had developed 158 of the 702 company restaurants on land that we own.
Previous wording
We intend to satisfy our capital requirements over the next 12 months with cash on hand, net cash provided by operating activities and, if needed, funds available under our revolving credit facility. In 2025, we expect capital expenditures of approximately $400 million.
Current wording
We intend to satisfy our capital requirements over the next 12 months with cash on hand, net cash provided by operating activities and, if needed, funds available under our revolving credit facility. In 2025, we expect capital
Previous wording
Net cash used in financing activities was $174.9 million in 2025 YTD compared to $138.0 million in 2024 YTD. The increase is primarily due to an increase in share repurchases and an increase in our quarterly dividend payment in 2025 YTD.
Current wording
Net cash used in financing activities was $262.5 million in 2025 YTD compared to $193.9 million in 2024 YTD. The increase is primarily due to an increase in share repurchases and an increase in quarterly dividends.
Previous wording
On February 19, 2025, our Board approved the payment of a quarterly cash dividend of $0.68 per share of common stock compared to the quarterly dividend of $0.61 per share of common stock declared in 2024. The payments of quarterly dividends totaled $90.3 million and $81.5 million in 2025 YTD and 2024 YTD, respectively.
Current wording
On February 19, 2025, our Board approved the payment of a quarterly cash dividend of $0.68 per share of common stock compared to the quarterly dividend of $0.61 per share of common stock declared in 2024. The payments of quarterly dividends totaled $135.4 million and $122.2 million in 2025 YTD and 2024 YTD, respectively.
Previous wording
On August 6, 2025, our Board approved the payment of the third quarter 2025 cash dividend of $0.68 per share of common stock. This payment will be distributed on September 30, 2025, to shareholders of record at the close of business on September 2, 2025.
Current wording
On November 5, 2025, our Board approved the payment of the fourth quarter 2025 cash dividend of $0.68 per share of common stock. This payment will be distributed on December 30, 2025, to shareholders of record at the close of business on December 2, 2025.
Previous wording
During 2025 YTD, we paid $60.0 million, excluding excise taxes, to repurchase 342,789 shares of our common stock. This includes $30.0 million repurchased under our prior authorization and $30.0 million repurchased under our current authorization. During 2024 YTD, we paid $35.1 million, excluding excise taxes, to repurchase 222,666 shares of our common stock. As of July 1, 2025, $470.0 million remained under our authorized stock repurchase program.
Current wording
During 2025 YTD, we paid $100.0 million, excluding excise taxes, to repurchase 573,329 shares of our common stock. This includes $30.0 million repurchased under our prior authorization and $70.0 million repurchased under our current authorization. During 2024 YTD, we paid $44.7 million, excluding excise taxes, to repurchase 278,914 shares of our common stock. As of September 30, 2025, $430.0 million remained under our authorized stock repurchase program.
Previous wording
The interest rate for each credit facility as of July 1, 2025 and June 25, 2024 was 5.42% and 6.21%, respectively.
Current wording
The interest rate for each credit facility as of September 30, 2025 and September 24, 2024 was 5.34% and 5.72%, respectively.
Previous wording
As of July 1, 2025 and December 31, 2024, we were contingently liable for $8.9 million and $9.4 million, respectively, for seven lease guarantees. These amounts represent the maximum potential liability of future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of July 1, 2025 and December 31, 2024 as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant.
Current wording
As of September 30, 2025 and December 31, 2024, we were contingently liable for $8.7 million and $9.4 million, respectively, for seven lease guarantees. These amounts represent the maximum potential liability of future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of September 30, 2025 and December 31, 2024 as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant.