BlackBird Financial LP, led by Judah Spinner, announced on November 11, 2025 that it had acquired a substantial stake in Texas Roadhouse, Inc. The investment, while not publicly disclosed in percentage terms, is described as a “meaningful” position that will give BlackBird a seat at the table as the casual‑dining chain expands its footprint and refines its unit economics.
Texas Roadhouse reported Q2 2025 results that beat revenue expectations and underscored the strength of its core business. Total revenue rose to $1.512 billion, a 12.7 % year‑over‑year increase and a $10 million beat over the $1.50 billion consensus estimate. Comparable restaurant sales grew 5.8 %, driven by higher traffic across all three brands—Texas Roadhouse, Bubba’s 33, and Jaggers—while the company opened its 800th system‑wide restaurant during the quarter. However, GAAP earnings per share fell to $1.86, missing the $1.91 consensus by $0.05, as commodity and wage inflation eroded margins.
The company’s restaurant margin contracted to 17.1 % from 18.2 % a year earlier, a decline of 108 basis points. Management attributed the compression to 5.2 % commodity inflation and 3.8 % wage inflation, both of which have been persistent drivers of cost pressure. CEO Jerry Morgan emphasized that the chain’s disciplined pricing and operational efficiency have allowed it to maintain a high sales‑per‑square‑foot profile even as costs rise, and he highlighted the company’s focus on new store development and strategic franchise acquisitions as key to sustaining growth.
BlackBird’s investment reflects the firm’s belief in Texas Roadhouse’s structural advantages. Spinner has long praised the chain’s unit economics—company‑owned locations generate over $7 million in annual sales per unit—and its ability to reinvest in growth. The firm’s philosophy centers on partnering with companies that possess superior unit economics, aligned leadership, and long‑term value‑creation potential, all of which Texas Roadhouse exemplifies.
Looking ahead, Texas Roadhouse has updated its 2025 guidance to include commodity cost inflation of approximately 5 % and wage and other labor inflation of about 4 %. The company plans to open more than 30 new units in 2025, bringing its U.S. footprint close to 710 restaurants and the global total near 800. While margin pressure remains a short‑term challenge, the company’s strong top‑line momentum, disciplined cost management, and expansion strategy position it well to navigate the inflationary environment and continue delivering shareholder value.
The combination of BlackBird’s capital and Texas Roadhouse’s proven business model signals confidence in the chain’s long‑term trajectory. The investment is expected to provide additional capital flexibility for technology initiatives and further expansion, reinforcing the company’s competitive edge in the casual‑dining sector.
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