Texas Roadhouse, Inc. Goodwill & Intangibles Disclosure
(7) Goodwill and Intangible Assets
All of our goodwill and intangible assets reside within the Texas Roadhouse reportable segment. A summary of changes to goodwill were as follows:
Fiscal Year Ended | |||||
December 30, 2025 | December 31, 2024 | ||||
Beginning balance | $ | 169,684 | $ | 169,684 | |
Additions | 72,536 | — | |||
Ending balance | $ | 242,220 | $ | 169,684 | |
Intangible assets, net consists of reacquired franchise rights. The following table presents the balance of intangible assets:
Fiscal Year Ended | |||||
December 30, 2025 | December 31, 2024 | ||||
Gross carrying value | $ | 47,353 | $ | 24,412 | |
Accumulated amortization | (29,611) | (23,147) | |||
Net carrying value | $ | 17,742 | $ | 1,265 | |
We amortize reacquired franchise rights on a straight-line basis over the remaining term of the related franchise agreement. The following table presents the aggregate expense related to the amortization of the Company's intangible assets for the years ended December 30, 2025, December 31, 2024, and December 26, 2023
Fiscal Year Ended | ||||||||
December 30, 2025 | December 31, 2024 | December 26, 2023 | ||||||
Amortization expense | $ | 6,463 | $ | 2,218 | $ | 3,024 | ||
The following table presents the expected annual amortization expense for the Company's intangible assets for the next five years and thereafter:
2026 | $ | 4,931 |
2027 | 3,823 | |
2028 | 2,720 | |
2029 | 2,054 | |
2030 | 1,364 | |
Thereafter | 2,850 | |
$ | 17,742 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.