In a report released today, Brian Bittner from Oppenheimer maintained a Hold rating on Texas Roadhouse (NASDAQ: TXRH). The company’s shares closed yesterday at $66.81.
Bittner wrote:
“Our analysis suggests Street’s ’19 EPS will be forced ~10% lower coming out of 3Q18’s print. This is despite healthy sales trends with the culprits being: 1) flow- through of 3Q18’s earnings miss, 2) above-average labor pressures, 3) accelerating food cost inflation, and 4) higher-than-expected G&A. Interestingly, mgmt revealed a greater willingness to use pricing to protect margins. The risk to raising prices is smaller traffic gains, but we believe investors will applaud a move to a more aggressive pricing strategy. Despite stock’s 10%+ decline in after-market, P/E valuation remains in the 25x-range (owing to reduced estimates). Maintain Perform until we discover an earnings upside path.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 10.3% and a 66.3% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.
The word on The Street in general, suggests a Hold analyst consensus rating for Texas Roadhouse with a $69.63 average price target, which is a 4.2% upside from current levels. In a report issued on October 24, Loop Capital Markets also initiated coverage with a Hold rating on the stock with a $73 price target.
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Texas Roadhouse’s market cap is currently $4.78B and has a P/E ratio of 30.23. The company has a Price to Book ratio of 5.26.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock.
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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.
