On Oct 26, major Wall Street analysts update their ratings for $Texas Roadhouse (TXRH.US)$, with price targets ranging from $185 to $205.
Morgan Stanley analyst Brian Harbour maintains with a hold rating, and adjusts the target price from $200 to $205.
BofA Securities analyst Sara Senatore maintains with a buy rating.
Evercore analyst David Palmer maintains with a buy rating, and maintains the target price at $200.
Oppenheimer analyst Brian Bittner maintains with a hold rating.
RBC Capital analyst Logan Reich maintains with a hold rating, and adjusts the target price from $175 to $185.
Furthermore, according to the comprehensive report, the opinions of $Texas Roadhouse (TXRH.US)$'s main analysts recently are as follows:
Texas Roadhouse delivered a robust financial performance this quarter, which, while in line with forecasts, still stands out. This leads to a modest increase in projections, with the expectation that they will surpass the prevailing market consensus.
The company's Q3 performance was robust despite not meeting earnings expectations due to headwinds from labor and taxes.
Texas Roadhouse's Q3 results showcased continued robust same-store sales momentum and restaurant margin growth. The outlook for 2025 commodities was more favorable than expected, which is promising. The company is experiencing strong traffic gains and has seen accelerating trends to date, despite challenging economic conditions and tougher comparisons. There is optimism for sustained leading traffic momentum, potential for earnings growth over multiple years, and a return to sustainable margins in the 17%-18% range.
Texas Roadhouse demonstrated robust momentum with comps that quickened throughout the quarter, and customer traffic that saw an approximate 100 bps increase into October. The company is also witnessing improvements in labor productivity, with labor hour growth and traffic growth remaining below 30% in the third quarter, fostering operational leverage.
The company's third-quarter earnings did not meet expectations due to increased depreciation and amortization, taxes, and insurance adjustments. Despite these challenges, the company has demonstrated commendable comparable sales growth. However, there is caution regarding the stock's high multiple and the suggestion that the consensus earnings per share forecast for 2025 may be overly optimistic.
Here are the latest investment ratings and price targets for $Texas Roadhouse (TXRH.US)$ from 5 analysts:
Note:
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