TXRH

Texas Roadhouse Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is TXRH Halal?

Core restaurant offerings include non-halal meat and alcohol, despite passing the examined financial ratios.

What You Should Know

Texas Roadhouse's March 31, 2026 Form 10-Q reports 1.40% interest-bearing debt/assets, 6.00% cash/assets and 7.51% receivables-plus-cash/assets. Q1 revenue was 1,633.166 million; the direct non-halal meat and alcohol business fails the retained conservative business-activity screen independently of the financial ratios.

⚠️ Concerns

  • Non-halal beef and pork are core menu items
  • Alcohol is sold at restaurant locations
  • The filing does not separate prohibited product revenue, so total revenue is only a conservative upper-bound proxy
  • No purification can cure a direct core-business failure

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
1.40%Within limit
Below 33.333% under FTSE Yasaar

50 / 3,574.73

Cash + interest-bearing securities / assets
6.00%Within limit
Below 33.333% under FTSE Yasaar

214.561 / 3,574.73

Receivables + cash / assets
7.51%Within limit
Below 50% under FTSE Yasaar

268.343 / 3,574.73

Non-compliant income / revenue (upper bound)
0.03%Within limit
No more than 5% under FTSE Yasaar

0.545 / 1,633.166

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Fails

Financial ratios are low (debt/assets 1.40%, liquidity/assets 6.00%, receivables plus cash/assets 7.51% and income upper bound 0.03%), but the direct restaurant product and alcohol business fails independently.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Fails

Known asset-based financial ratios pass, but the direct non-halal meat and alcohol business fails independently. This is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Fails

Known debt/assets and liquidity/assets pass the examined financial limits, but the core product activity fails; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

Market-cap methods are not calculated; no alternative denominator can cure the failed direct business activity.

Business-activity disclosure

Texas Roadhouse operates casual-dining restaurants whose core menus include non-halal beef and pork products and whose locations commonly sell alcohol. The direct product and beverage mix fails the retained conservative business-activity screen.

Limitation: The filing does not split alcohol, pork, non-halal meat and otherwise permissible food revenue into a reproducible school-specific numerator, so total revenue is used only as a conservative upper-bound proxy.

Purification

The core business-activity screen fails; the conservative revenue proxy is not a purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Texas Roadhouse's March 31, 2026 Form 10-Q.
  • Long-term debt is 50.000; operating lease liabilities and the undrawn credit facility are excluded from interest-bearing debt.
  • Cash is 214.561 and receivables are 53.782.
  • Quarterly revenue is 1,633.166 and net interest income is 0.545.
  • Total revenue is used as a conservative upper-bound proxy for the mixed non-halal meat and alcohol business because the filing does not quantify a reproducible prohibited-revenue numerator; this is not a claim that every dollar is prohibited.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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