Is Texas Roadhouse, Inc. (TXRH) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 8.6% / 30% | 1.2% / 30% | 1.9% / 30% | 0.04% / 5% | ✓ HALAL |
| DJIM | 8.6% / 33% | 1.2% / 33% | 1.9% / 33% | 0.04% / 5% | ✓ HALAL |
| MSCI | 27.4% / 33% | 3.8% / 33% | 6.0% / 33% | 0.04% / 5% | ✓ HALAL |
| S&P | 8.6% / 33% | 1.2% / 33% | 1.9% / 33% | 0.04% / 5% | ✓ HALAL |
| FTSE | 27.4% / 33% | 3.8% / 33% | 6.0% / 50% | 0.04% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 16.5% | |
| Operating Margin | 6.5% | |
| Net Margin | 6.9% | |
| Return on Equity (ROE) | 29.0% | |
| Return on Assets (ROA) | 8.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $730M |
| Free Cash Flow | $336M |
| Total Debt | $974M |
| Debt-to-Equity | 65.9 |
| Current Ratio | 0.5 |
| Total Assets | $3.5B |
Price & Trading
| Last Close | $166.35 |
| 50-Day MA | $179.77 |
| 200-Day MA | $175.92 |
| Avg Volume | 951K |
| Beta | 0.9 |
|
52-Week Range
$148.73
| |
About Texas Roadhouse, Inc. (TXRH)
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It operates through Texas Roadhouse, Bubba's 33, and Others segments. The company's restaurants offer seasoned and aged steaks, ribs, seafood, chicken, pork chops, pulled pork, and vegetable plates, as well as an assortment of hamburgers, salads, and sandwiches; and pizza, wings, and various appetizers and dinner entrées. The company also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers brands. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
Purification Calculator
As a halal stock with 0.04% impermissible income, you need to purify your dividends.
Related Halal Stocks in Consumer Cyclical
Frequently Asked Questions
Is Texas Roadhouse, Inc. (TXRH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Texas Roadhouse, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Texas Roadhouse, Inc.'s debt ratio?
Texas Roadhouse, Inc.'s debt ratio is 8.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 27.4%.
Does Texas Roadhouse, Inc. require dividend purification?
Yes, Texas Roadhouse, Inc. has an impermissible income ratio of 0.04%, which means 0.04% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Texas Roadhouse, Inc.'s key financial metrics?
Texas Roadhouse, Inc. has a market capitalization of $10.6B, trailing P/E ratio of 26.3, and revenue of $5.9B. The company maintains a gross margin of 16.5% and a net margin of 6.9%. Return on equity stands at 29.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.