Texas Roadhouse (TXRH – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst David Tarantino from Robert W. Baird upgraded the rating on the stock to a Buy and gave it a $175.00 price target.
David Tarantino has given his Buy rating due to a combination of factors including Texas Roadhouse’s robust same-store traffic performance and the potential for significant profitability improvements in the near term. Despite the stock trading near all-time highs, Tarantino believes there is a strong case for continued growth, driven by the company’s impressive execution at the unit level, a compelling value proposition, and a favorable alignment of pricing with cost inflation. This combination is expected to sustain positive investor sentiment and allow for a premium valuation of the stock, with an anticipated rise in earnings over the next year.
Looking at the broader growth prospects, Texas Roadhouse is positioned to achieve substantial growth over the next several years with a revenue increase trajectory approaching or exceeding 10% annually, bolstered by ongoing unit expansion and healthy comparable sales. The company’s strategic focus on returning restaurant-level margins to long-term targets combined with its current relative valuation metrics, which remain reasonable even at a premium, underpin Tarantino’s optimistic outlook. Moreover, his price target of $175 reflects confidence in sustained premium valuation, supported by Texas Roadhouse’s bright growth prospects in a market where growth opportunities are increasingly rare among larger-cap companies.
Tarantino covers the Consumer Cyclical sector, focusing on stocks such as Texas Roadhouse, Restaurant Brands International, and Dutch Bros Inc. According to TipRanks, Tarantino has an average return of 11.8% and a 66.14% success rate on recommended stocks.
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Texas Roadhouse (TXRH) Company Description:
Texas Roadhouse, Inc. is a full-service, casual dining restaurant chain, which offers assorted seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills. It operates restaurants under the Texas Roadhouse and Aspen Creek names. The firm also offers its guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork and vegetable plates, an assortment of hamburgers, salads and sandwiches. It also provides supervisory and administrative services for other license and franchise restaurants. The company was founded by W. Kent Taylor on February 17, 1993 and is headquartered in Louisville, KY.
Read More on TXRH:
- Texas Roadhouse Enhances Board and Adjusts Executive Pay
- Texas Roadhouse appoints Jane Grote Abell to board of directors
- Texas Roadhouse, Inc. Appoints Jane Grote Abell to Board of Directors
- Texas Roadhouse price target raised to $142 from $120 at JPMorgan
- Cracker Barrel price target raised to $76 from $68 at BofA
