Domino's vs Texas Roadhouse
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KIRA’s take AI analyst
I put Domino's and Texas Roadhouse side by side, using each one’s latest annual report. Here is what stands out:
- Texas Roadhouse is the larger business, with $5.9B of revenue in fiscal 2025 against $4.9B for Domino's.
- Texas Roadhouse grew revenue faster (9.4%, against 5.0%).
- Domino's kept more of each dollar of sales as operating profit (19.3% operating margin, against 8.1%).
- Domino's turned more of its sales into free cash flow (13.6% FCF margin, against 5.8%).
- Domino's earned a higher return on the capital invested in it (92.2%, against 33.0%).
- Investors pay more for each dollar of Texas Roadhouse’s earnings: a P/E of 26.7x against 17.2x for Domino's.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Domino's
DPZ
6/9
Operating marginNet marginFCF marginReturn on capitalPiotroski F-scoreShare count change
Texas Roadhouse
TXRH
3/9
Revenue growth5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | DPZ FY25 | TXRH FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.3B | $11.0B |
| Revenue | $4.9B | $5.9B |
| Free cash flow | $672M | $342M |
| Net income | $602M | $414M |
| Growth | ||
| Revenue growth | 5.0% | 9.4% |
| 5-year growth | 3.7% | 19.6% |
| Share count change | −2.2% | −0.8% |
| Profitability | ||
| Gross margin | 40.0% | — |
| Operating margin | 19.3% | 8.1% |
| Net margin | 12.2% | 7.1% |
| FCF margin | 13.6% | 5.8% |
| Return on capital | 92.2% | 33.0% |
| Return on equity | — | 29.4% |
| Balance sheet | ||
| Net debt | $4.7B | −$132M |
| Net debt / EBITDA | 4.5x | −0.2x |
| Dividends and buybacks | $595M | $331M |
| Valuation & quality | ||
| P/E | 17.2x | 26.7x |
| Piotroski F-score | 8 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.