Oppenheimer analyst Brian Bittner maintained a Hold rating on Texas Roadhouse (TXRH) today. The company’s shares closed yesterday at $65.56.
Bittner wrote:
“Biggest takeaway from the call is mgmt’s greater commitment to protect deteriorating margins via price increases. Mgmt will raise the model’s price factor above 3% for rest of year, its largest increase in seven years. This action does appear required for margins to achieve Street forecasts, rather than produce upside based on our analysis. Consensus will actually revise headline ’19 EPS down a bit following new G&A commentary, in our view. This, and stock’s 24-25x P/E keep us at Perform. TXRH’s premium valuation is supported by extremely healthy SSS which were +5.6% for 4Q and +4.7% quarter-to-date (ex-calendar shift).”
According to TipRanks.com, Bittner is a top 100 analyst with an average return of 11.5% and a 71.0% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Yum China Holdings.
Currently, the analyst consensus on Texas Roadhouse is a Moderate Buy with an average price target of $67, implying a 2.2% upside from current levels. In a report issued on February 11, Wedbush also maintained a Hold rating on the stock with a $62 price target.
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Based on Texas Roadhouse’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $30.33 million. In comparison, last year the company had a net profit of $28.62 million.
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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.
