Market Overview

Lower Expectations For Texas Roadhouse Make A Nice Set-Up For Q3

Share:
Lower Expectations For Texas Roadhouse Make A Nice Set-Up For Q3

Texas Roadhouse Inc (NASDAQ: TXRH) operates over 400 restaurant locations across the United States. While the company is benefiting from lower beef prices, decelerating SRS figures appear to be offsetting the lower costs Texas Roadhouse is experiencing.

"We are impressed with TXRH's recent performance and continue to like the company's returns, CF and growth opportunity," said analyst John Zolidis of Buckingham Research. "However we remain concerned with slowing SRS and EPS."

Third-Quarter Preview

Texas Roadhouse had a strong 2015 and start to the 2016, but has since given up around 24 percent of its stock price as the market becomes more cautious around some slowing trends surrounding the restaurant industry.

Related Link: Now's A Good Time To Reserve A Spot In Zoe's Kitchen

Despite the concerns, Buckingham Research still likes the concept and the stock. The cautious sentiment surrounding the restaurant industry and lower expectations could set Texas Roadhouse up for a nice earnings beat in the third quarter. The company is set to release its third-quarter earnings on November 1.

Buckingham Research maintains a Neutral rating on Texas Roadhouse and trimmed its price target to $43 from $47.

At time of writing, Texas Roadhouse was down 1.57 percent Thursday.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for TXRH

DateFirmActionFromTo
Jul 2019MaintainsNeutral
Jul 2019Initiates Coverage OnSector Weight
Jun 2019Initiates Coverage OnHold

View More Analyst Ratings for TXRH
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Price Target Previews Reiteration Restaurants Analyst Ratings Best of Benzinga

 

Related Articles (TXRH)

View Comments and Join the Discussion!

Bernie Sanders And Rep. Cummings To Ariad: Explain Why Iclusig Now Costs $199,000 A Year

Omeros Stock Remains Higher On Promising Kidney Drug Trial Data