Analysts See Cost Headwinds For Texas Roadhouse Inc.

Texas Roadhouse Inc. (NASDAQ: TXRH) will see continued top-line growth with earnings held down by cost headwinds, a couple of analysts said Tuesday.The restaurant chain recently met fourth-quarter earnings expectations and said same-store sales in the first period to date are up 12 percent.Roadhouse, which operates about 450 restaurants nationwide, changed hands recently at $37.50, up $0.34.Despite enviable sales growth in units open more than a year, higher wages and health care costs as well as inflation for beef prices will continue to pressure the company's margins, according to Morgan Stanley's John Glass.The analyst maintained a Hold rating on the Louisville, Kentucky company along with a $37 price target.Glass boosted his same-store sales growth estimate for 2015 to 5 percent, from 4 percent, but left his earnings forecast unchanged, citing higher costs.Wunderlich's Robert M. Derrington likewise maintained a Hold rating but boosted his price target 21 percent to $40 a share, The company has "an eviable track record" in boosting same-store sales and revenue, but Derrington said that record is "fairly reflected" in its share price.Among 15 analysts following the company, 10 are at Hold and five are at Buy.