
Texas Roadhouse (TXRH) Stock Forecast & Price Target
Texas Roadhouse (TXRH) Analyst Ratings
Bulls say
Texas Roadhouse has demonstrated strong same-store sales (SSS) growth, with a notable acceleration to 6.1%, indicative of its solid positioning amid challenging macroeconomic conditions. The company's average unit volume (AUV) for Bubba's 33 reached $1.53 million, reflecting a 2.2% year-over-year increase, while labor efficiency improved significantly, contributing positively to operating margins. Additionally, the ongoing implementation of digital kitchen operations in 95% of stores suggests an enhancement in operational efficiency that could further support revenue growth and market share gains in the casual dining sector.
Bears say
Texas Roadhouse Inc. has demonstrated a decline in restaurant level margins, decreasing by 168 basis points year-over-year to 14.3%, attributed to significant commodity and labor inflation pressures. The company anticipates a continued decline in margins over the next few years, projecting restaurant level margins of 15.9% and 14.9% in 2025 and 2026, respectively, down from 16.2% previously, highlighting challenges in navigating inflation amidst high operational costs. Furthermore, external risks, such as a decelerating macro environment, potential shifts in consumer dining preferences, and competition from off-premise sales, contribute to an uncertain outlook for the company’s growth and profitability.
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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