Texas Roadhouse: We See Limited Earnings Upside, Says Oppenheimer
In a research report published today, Oppenheimer analyst Brian Bittner reiterated a Perform rating on Texas Roadhouse (NASDAQ:TXRH), following the company’s earnings results, posting EPS of $0.27 that missed the Street’s $0.29. No price target was provided.
Bittner wrote, “Traffic continues to be top-notch in casual dining, but its flow-through to the bottomline remains elusive. An initial peek into ’15 reveals stubbornly high food inflation which will outpace sub-2% pricing, and we are forced to lower EPS estimates. Management remains willing to trade traffic for margin in short-term with hopes beef prices will ultimately reverse as supply increases in ’16. Valuation at ~9x EBITDA limits downside, but we see limited earnings upside opportunity for now.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Bittner has a total average return of 13.1% and a 74.5% success rate. Bittner is ranked #290 out of 3358 analysts.