Texas Roadhouse Rides Out Hoax Dip: Q3 Comps Up 4.3% as Sales Recover

Texas Roadhouse posted a 4.3% same-store sales gain in Q3 even as a debunked online hoax dragged September comps down to 1%, a stumble the chain now says is already reversing.

The trouble started with a now-deleted August Facebook post by a user named "Nancy Smith." It claimed employees planned to lick their fingers and touch food of Black customers, alleging 400,000 people were in on the scheme. Screenshots spread across TikTok and X.

Texas Roadhouse responded fast. It launched an internal review and hired a third-party online forensics firm, which found zero evidence — none — that the behavior occurred, that the alleged "White and Proud" forum group existed, or that any current or former employee was connected. USA Today and other outlets confirmed it was a hoax.

Analysts still braced for damage. Peter Saleh, U.S. Bancorp, BTIG managing director and restaurants analyst, said earlier: "unfortunately, consumers tend to believe what they read online." He pointed to credit card data trending negative in September and early October.

CEO Jerry Morgan confirmed the hit Thursday: the brand's performance was "negatively impacted."

What does the quarter actually look like?

The monthly splits tell the story:

• July comps: +5.9%
• August comps: +6.8%
• September comps: +1% — the hoax month
• First five weeks of Q4: +1.5%, including a 30-basis-point drag from Halloween falling on a Saturday

Traffic rose 0.7% for the quarter, a 5% two-year figure. CFO Mike Lenihan reported sequential improvement in sales, traffic and mix through October and into November, with dining room and to-go numbers positive in August and September.

Average weekly sales hit $163,980, with $23,628 from to-go — up from $157,325 and $21,409 a year ago. That's roughly $6,600 more per restaurant per week. The brand has served about 200 million guests in 2026 to date.

Michael Bailen, head of investor relations, said numbers improved "every week" though recovery took longer than some expected. "But our operators are out there busting their butts," he said. "And they've doubled down on everything they're doing. And if there's any group of managers and operators out there who are up for this challenge, it's the Texas Roadhouse managing partners and the whole teams out there who are compensated off their restaurants."

No playbook was tossed. Operators doubled down on Legendary Food, Legendary Service, local store marketing and community engagement. Morgan, fresh off the annual fall tour, said operator sentiment stayed positive and momentum returned in affected stores. Conversations centered on food, value and trust — plus early dine, "Wild West Wednesday" and community outreach. "Absolutely, our sales are coming back," he said.

Chicken Alfredo and the rare menu change

Menu moves are deliberately rare at Texas Roadhouse, but Chicken Alfredo Pasta just reached more than 600 restaurants. The item ran on one regional menu for over two decades; after operator pull, it piloted in 100 stores, added 100 more, then 400 locations opted in with the October menu. Morgan expects a systemwide rollout by spring and called it "a real win for us in the long term." Guest interest extends to other proteins and vegetables.

The philosophy stays strict: nothing enters the fold unless it's "really good" enough to bump something out. Past additions include bigger steaks, shrimp, deviled eggs and fried Mozzarella sticks. As Morgan put it: "We're steaks and potatoes and ice-cold beer, baby."

Beverages are pulling too — mocktails, dirty sodas, a test of energizer drinks across all three brands, and $5 all-day beer, Long Island Iced Teas and Legendary Margaritas at the bar.

Technology and growth pipeline

The mobile point-of-sale test, software written internally, now runs in about 100 stores on Version 2. Plans call for 200 more locations in 2027, wrapping up in 2028. The rollout replaces hardwired POS terminals for servers who prefer tablets while preserving flexibility for those who don't. The fully deployed digital kitchen is calming order flow, especially folding to-go into dining room production.

The company opened five company-run units in Q3 (two Bubba's 33, one Jaggers) plus three franchise units. More than 15 company openings and three franchises are scheduled for Q4, keeping the chain on pace for 35 stores this year. Roughly the same is planned for 2027, with 18 stores already under construction and franchise partners adding eight to 10, including up to eight internationally. The system stands at 840 locations versus 806 last year — 664 domestic company Texas Roadhouses, 61 Bubba's 33, 12 company Jaggers, plus 31 franchised U.S. Roadhouses, 65 international Roadhouse franchises and seven franchised Jaggers. New development agreements cover Vietnam and Japan, with nearly 70 restaurants in 11 countries by year-end.

Thursday also marked the relocation of Store No. 1 in Clarksville, Indiana — open since February 17, 1993 — complete with memorabilia and a "Kent's Corner" honoring late founder Kent Taylor. With sales recovering weekly and the unit pipeline accelerating into 2027, the hoax looks increasingly like a footnote rather than a trend line.