The exterior of a LongHorn Steakhouse restaurant is seen on December 19, 2024 in Austin, Texas.
Business is booming at Texas Roadhouse and LongHorn Steakhouse.
In 2024, Texas Roadhouse became the biggest casual dining chain, surpassing Olive Garden, which had held the top spot since 2018, according to research firm Technomic.
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WATCH HEREAnd while Darden Restaurant-owned LongHorn Steakhouse missed Wall Street's expectations in its fiscal third quarter of 2025, the chain has been the only brand in its parent company's portfolio to consistently post positive same-store sales growth over the past few years.
"There's something about steak that it really rings true to the consumer as still being kind of an elevated or a premium consumption or dining experience," said Stephens equity research analyst Jim Salera. "It has been a key growth driver for the stock, and something that investors are always keen to focus on whenever Darden reports their earnings and to see how Longhorn is performing."
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SIGN UP While foot traffic for full service restaurants declined by 0.2% in 2024, LongHorn Steakhouse increased visits by 4.3% and Texas Roadhouse increased by 7.2%, according to data from Placer.ai.
A unique dining experience and focus on local talent has been an important part of the formula.
"You can't underestimate the investment that these chains make in their general managers at the store level. The store-level manager really is probably the most critical piece to any restaurant chain's success, said Technomic Senior Principal David Henkes.
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Value is another key driver of success. The cost of beef is volatile, and Henkes said that these value steakhouse chains have an advantage over mom-and-pop shops because their corporate procurement offices negotiate food costs in advance.
Both LongHorn Steakhouse and Texas Roadhouse have also absorbed some inflation costs to minimize price increases.
