Texas Roadhouse (TXRH) concentration risks

The company's concentration profile is limited to two disclosed exposures: a supplier dependency on a small group of beef providers and a geographic skew toward two U.S. states. On the supply side, beef is currently purchased primarily from four beef suppliers, a moderate-share concentration by disclosed size that carries a dependency character. The filing notes that these suppliers represent a significant portion of the total beef marketplace, suggesting that alternative sources exist but that the transition cost and procurement complexity of a supplier disruption would be meaningful. Given that beef is the company's primary cost input, any supply shock or pricing shift from this group flows directly to food costs. The geographic exposure is more limited. Approximately 21% of company restaurants are located in Texas and Florida — a low-share concentration by disclosed size, structural in character. While that footprint creates some sensitivity to economic and weather-related trends in those states, the exposure at 21% is modest enough that regional softness in Texas and Florida alone would not determine consolidated results. Together, these two exposures describe a business with manageable concentration risks on both dimensions. The beef supplier dependency is the more operationally significant of the two, as it sits directly in the cost structure rather than being a geographic macro exposure. No customer, technology, or counterparty concentration is separately disclosed, which is consistent with the company's consumer-facing, dispersed restaurant model.

For the engine’s reasoning on TXRH’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.