
Texas Roadhouse (TXRH) Stock Forecast & Price Target
Texas Roadhouse (TXRH) Analyst Ratings
Bulls say
Texas Roadhouse Inc. has demonstrated solid financial performance, with Bubba's same-store sales (SSS) growth of 1.8% and an average unit volume (AUV) of $1.53 million, reflecting a 2.2% year-over-year increase. The company's strong positioning is further underscored by a significant SSS acceleration of 6.1% despite challenging market conditions, and a shift towards improved operational efficiencies with 95% of stores now utilizing a 'digital kitchen.' Positive trends in average weekly sales per unit, reaching $157,325, along with an increase in off-premises sales, indicate robust demand and a favorable outlook for continued market share growth and new store development.
Bears say
Texas Roadhouse Inc. has experienced a decline in restaurant-level margin, which decreased by 168 basis points year-over-year to 14.3%, primarily due to a significant commodity inflation of 7.9% and labor inflation of 3.9%, resulting in pressure on profit margins despite higher sales. The company's projected restaurant-level margins decreasing from 16.2% in 2025 and 2026 to 15.9% and 14.9%, respectively, highlight ongoing concerns regarding cost management and consumer spending behavior. Additionally, various risks, including a decelerating macroeconomic environment, inflationary pressures, and uncertain growth trajectories for new initiatives, contribute to a negative outlook for Texas Roadhouse's financial performance.
This aggregate rating is based on analysts' research of Texas Roadhouse and is not a guaranteed prediction by Public.com or investment advice.
Texas Roadhouse (TXRH) Analyst Forecast & Price Prediction
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