Texas Roadhouse, Inc. Leases Disclosure
(8) Leases
We recognize right-of-use assets and lease liabilities for both real estate and equipment leases that have a term in excess of one year. As of December 30, 2025 and December 31, 2024, these amounts were as follows:
December 30, 2025 | ||||||||
Real estate | Equipment | Total | ||||||
Operating lease right-of-use assets | $ | 873,287 | $ | 6,234 | $ | 879,521 | ||
Current portion of operating lease liabilities | 29,084 | 1,869 | 30,953 | |||||
Operating lease liabilities, net of current portion | 939,711 | 3,359 | 943,070 | |||||
Total operating lease liabilities | $ | 968,795 | $ | 5,228 | $ | 974,023 | ||
December 31, 2024 | ||||||||
Real estate | Equipment | Total | ||||||
Operating lease right-of-use assets | $ | 764,135 | $ | 5,730 | $ | 769,865 | ||
Current portion of operating lease liabilities | 26,501 | 1,671 | 28,172 | |||||
Operating lease liabilities, net of current portion | 823,240 | 3,060 | 826,300 | |||||
Total operating lease liabilities | $ | 849,741 | $ | 4,731 | $ | 854,472 | ||
Information related to our real estate operating leases for the fiscal years ended December 30, 2025, December 31, 2024, and December 26, 2023 were as follows:
Fiscal Year Ended | ||||||||
Real estate costs | December 30, 2025 | December 31, 2024 | December 26, 2023 | |||||
Operating lease | $ | 93,564 | $ | 82,739 | $ | 75,068 | ||
Variable lease | 8,291 | 7,007 | 5,079 | |||||
Total lease costs | $ | 101,855 | $ | 89,746 | $ | 80,147 | ||
Real estate lease liabilities maturity analysis | December 30, 2025 | |||||||
2026 | $ | 90,829 | ||||||
2027 | 92,919 | |||||||
2028 | 94,367 | |||||||
2029 | 95,616 | |||||||
2030 | 96,749 | |||||||
Thereafter | 1,241,520 | |||||||
Total | 1,712,000 | |||||||
Less interest | 743,205 | |||||||
Total discounted operating lease liabilities | $ | 968,795 | ||||||
Fiscal Year Ended | ||||||||
Real estate leases other information | December 30, 2025 | December 31, 2024 | ||||||
Cash paid for amounts included in measurement of operating lease liabilities | $ | 84,730 | $ | 74,654 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 123,199 | $ | 104,548 | ||||
Weighted-average remaining lease term (years) | 17.47 | 17.35 | ||||||
Weighted-average discount rate | 6.70 | % | 6.53 | % | ||||
Operating lease payments exclude $12.5 million of future minimum lease payments for executed real estate leases of which we have not yet taken possession. In addition to the above operating leases, as of December 30, 2025, we had two finance leases with a right-of-use asset balance and lease liability balance of $1.8 million and $2.7 million, respectively. As of December 31, 2024, we had two finance leases with a right-of-use asset balance and lease liability balance of $1.9 million and $2.8 million, respectively. The right-of-use asset balance is included as a component of other assets and the lease liability balance as a component of other liabilities in the consolidated balance sheets.
In 2025, we entered into six sale leaseback transactions that generated proceeds of $19.1 million and no gain or loss was recognized on these transactions. In 2024, we entered into five sale leaseback that generated proceeds of $16.0 million and no gain or loss was recognized on these transactions. The resulting operating leases are included in the operating lease right-of-use assets and lease liabilities noted above.
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 Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.