NASDAQ Shariah screener · October 2026
Is Texas Roadhouse, Inc. (TXRH) Halal?
Texas Roadhouse, Inc. · NASDAQ: TXRH · Consumer Discretionary
The short answer
Texas Roadhouse, Inc. (NASDAQ: TXRH) fails this Shariah screener on the business gate: alcohol is a core, disclosed part of its bar-driven restaurant model — 9.6% of restaurant sales in fiscal 2024 per its 10-K, with full bars at most locations and the Bubba's 33 sports-bar concept. Its finances pass both ratio gates: interest-bearing debt is about $50 million (~0.5% of its ~$10.4 billion market cap, under the 33% ceiling), and separately disclosed interest income is about 0.06% of revenue (under the 5% ceiling).
Gate 1 — Business activity: FAIL
Texas Roadhouse, Inc., based in Louisville, Kentucky, is a casual dining restaurant company founded in 1993 by W. Kent Taylor. Per its Q1 2026 Form 10-Q, it operated three concepts with 822 restaurants in 49 states, one U.S. territory, and ten foreign countries: Texas Roadhouse steakhouses, Bubba's 33 sports restaurants, and Jaggers.
Business screen (factual, from the filing): the company's fiscal 2024 Form 10-K states that "in 2024, alcoholic beverages at all company restaurants accounted for 9.6% of restaurant sales", and that most full-service restaurants feature a full bar offering draft and bottled beer, major brands of liquor and wine, plus in-house margaritas and signature cocktails. Bubba's 33 restaurants offer an extensive selection of ice-cold draft beer and signature cocktails. Alcohol is a core, disclosed, and integral part of the bar-driven business model — the same standard applied in the Darden Restaurants screening, which also failed on this gate. Gate 1 fails. Facts only.
Gate 2 — Debt and cash: PASS
Per Texas Roadhouse's Q2 2026 reporting (Condensed Consolidated Balance Sheet at June 30, 2026; $ thousands; balance sheet reproduced in the August 6, 2026 earnings release furnished with the SEC), interest-bearing debt was: notes payable $0 + current portion of long-term debt $0 + long-term debt $50,000K (~$50M) = ~$50M. Operating lease liabilities (right-of-use assets ~$942M) are excluded. Cash and cash equivalents were $202,427K, about 1.9% of market cap.
Against a market cap of ~$10.4B (Finnhub $10.45B; stockanalysis $10.29B, October 2026), the debt-to-market-cap ratio is about 0.5%, well under the 33% ceiling. Gate 2 passes.
Gate 3 — Non-compliant income: PASS
Texas Roadhouse's Condensed Consolidated Statements of Income separately disclose an "Interest income, net" line: $1,021K for the 13 weeks ended June 30, 2026 (Q2 2026 earnings release furnished with the SEC on August 6, 2026; Q2 2025: $1,044K), against total revenue of $1,679,976K — about 0.06%, below the 5% non-compliant income ceiling. Gate 3 passes.
Key figures used
- Business: Texas Roadhouse, Inc. (Louisville, Kentucky); casual dining restaurant company founded 1993; three concepts — Texas Roadhouse steakhouses, Bubba's 33 sports restaurants, Jaggers; 822 restaurants in 49 states, one U.S. territory, ten foreign countries at March 31, 2026 (Q1 2026 10-Q)
- Gate 1: full bars at most full-service restaurants (draft/bottled beer, liquor, wine, in-house margaritas, signature cocktails); Bubba's 33 offers extensive draft beer and signature cocktails; FY2024 10-K: alcoholic beverages were 9.6% of restaurant sales at all company restaurants — alcohol is core to the model, fails (same standard as the Darden screening)
- Gate 2: interest-bearing debt ~$50M (long-term debt $50,000K; notes payable $0; current portion $0; balance sheet at June 30, 2026) vs ~$10.4B market cap (Finnhub $10.45B / stockanalysis $10.29B, Oct 2026) = ~0.5% (ceiling 33%) — passes; operating lease liabilities excluded; cash and cash equivalents $202,427K (~1.9% of market cap)
- Gate 3: interest income, net $1,021K (separately disclosed line, Q2 2026 earnings release furnished with the SEC Aug 6, 2026) / total revenue $1,679,976K for the 13 weeks ended June 30, 2026 = ~0.06% (ceiling 5%) — passes
- Third-party screeners: no Zoya, Musaffa, or ShariaPortfolio coverage of TXRH found
Frequently asked questions
Is Texas Roadhouse (TXRH) stock halal?
In this screener, TXRH fails: alcohol is a core, disclosed part of its bar-driven restaurant model — 9.6% of restaurant sales in fiscal 2024 per its 10-K — so it fails the business screen. Its finances pass both ratio gates: interest-bearing debt is only about 0.5% of its ~$10.4 billion market cap (under the 33% ceiling), and separately disclosed interest income is about 0.06% of revenue (under the 5% ceiling). This is a financial screen, not a religious ruling — consider consulting a qualified scholar for personal guidance.
What does Texas Roadhouse do?
Texas Roadhouse, Inc. is a casual dining restaurant company founded in 1993 by W. Kent Taylor in Clarksville, Indiana. It operates three concepts — Texas Roadhouse steakhouses, Bubba's 33 sports restaurants, and Jaggers — with 822 restaurants in 49 states, one U.S. territory, and ten foreign countries as of March 31, 2026 (Q1 2026 10-Q).
Why does Texas Roadhouse fail the business screen?
Its fiscal 2024 10-K states that alcoholic beverages at all company restaurants accounted for 9.6% of restaurant sales, and that most full-service restaurants feature a full bar (draft and bottled beer, liquor, wine, in-house margaritas, signature cocktails). Bubba's 33 restaurants offer an extensive selection of draft beer and signature cocktails. Alcohol is integral to the model, not incidental — the same standard applied in the Darden Restaurants screening.
How much debt does Texas Roadhouse have?
Per its Q2 2026 reporting (balance sheet at June 30, 2026), interest-bearing debt was $50 million of long-term debt, with no notes payable and no current portion of long-term debt. That is about 0.5% of its ~$10.4 billion market cap, well under the 33% ceiling. Operating lease liabilities are excluded from this ratio.
What do other Shariah screeners say about TXRH?
No Zoya, Musaffa, or ShariaPortfolio coverage of TXRH was found. This page reports each source's position without endorsing one.
Sources
- Texas Roadhouse Q2 2026 earnings release (furnished with the SEC Aug 6, 2026): condensed consolidated statements of income — interest income, net $1,021K for the 13 weeks ended June 30, 2026; balance sheet — cash and cash equivalents $202,427K at June 30, 2026
- Texas Roadhouse Q3 2025 Form 10-Q via StockTitan (period ended Sep 30, 2025): income-statement format confirming separately disclosed 'Interest income, net' line; company description (three concepts, 797 restaurants)
- Barchart — TXRH quarterly income statement (Q2 2026: sales $1,679,976K; interest income, net $1,021K)
- Zacks — TXRH balance sheet (long-term debt $50M at 6/30/2026; notes payable $0; current portion long-term debt $0; cash $202M)
- Texas Roadhouse FY2024 Form 10-K via StockLight: 'In 2024, alcoholic beverages at all company restaurants accounted for 9.6% of restaurant sales'; full bars at most full-service restaurants; Bubba's 33 draft beer and signature cocktails
- Finnhub — TXRH market cap $10.45B (Oct 2, 2026)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).