
Texas Roadhouse (TXRH) Stock Forecast & Price Target
Texas Roadhouse (TXRH) Analyst Ratings
Bulls say
Texas Roadhouse Inc. has demonstrated strong financial performance, with a reported restaurant operating margin (ROM) of 17.0% in the fourth quarter, showing a 170 basis point increase year-over-year, driven by sales leverage and reduced operating costs. The company also achieved a 7.7% increase in same-restaurant sales, exceeding projections and indicating robust traffic growth and effective pricing strategies. Additionally, with a long-term store potential of 900 units and sustained margins expected in the 17-18% range, Texas Roadhouse is positioned for significant growth in the casual dining segment.
Bears say
Texas Roadhouse Inc. is facing challenges reflected in its projections for menu pricing and same-store sales (SSS) growth, with estimates revised downward due to soft industry conditions. The company anticipates a margin decline of 70 basis points this year, resulting in a reduction of its 2025 unit-level margin estimate to 16.7% from 17.3%, amid ongoing labor inflation of 4-5%. Additionally, the decrease in SSS growth estimates—now forecasted at 4.0% for 2025, down from 5.4%—indicates potential headwinds for the company's revenue performance in the coming years.
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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