27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Texas Roadhouse Inc (NASDAQ:TXRH) reported its fourth quarter results Tuesday, which reinforced the bullish case for owning the stock, according to BMO.
The Analyst
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BMO Capital Markets' Andrew Strelzik maintains an Outperform rating on Texas Roadhouse's stock with a price target boosted from $57 to $60.
The Thesis
Texas Roadhouse indicated that comps accelerated for the fourth consecutive quarter and reached its highest level in over two years, Strelzik said in a note. The Texas-themed steakhouse chain's comps outperformed the restaurant industry by more than 500 basis points. The company's 4.7 percent comps to date in the first quarter is also "well ahead" of the industry.
Texas Roadhouse remains "best positioned" to benefit over the next 12 months, according to Strelzik. Lower income Americans are likely to see the strongest spending increase from tax policy change and Texas Roadhouse is an ideal trade-up restaurant given its value proposition. Bar and grill concepts like Texas Roadhouse are also among the most preferred type of restaurants among consumers who seek value outside of grocery stores.
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The "consistency" of Texas Roadhouse's business model and ability to deliver strong traffic growth in a difficult casual dining environment is attractive and is likely to drive its stock higher over time.
Price Action
Shares of Texas Roadhouse were trading higher by 2.3 percent at $58.21.
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Image credit: Niceckhart (Own work) [CC BY-SA 3.0], via Wikimedia Commons
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.