
Texas Roadhouse (TXRH) Stock Forecast & Price Target
Texas Roadhouse (TXRH) Analyst Ratings
Bulls say
Texas Roadhouse Inc has demonstrated strong performance with a reported restaurant operating margin (ROM) of 17.0% in the fourth quarter, reflecting an increase of approximately 170 basis points year-over-year, primarily driven by sales leverage and lower operating costs. The company also showed a notable same-restaurant sales (SRS) growth of 7.7%, supported by a 4.9% increase in traffic and a 2.8% rise in average check, indicating resilience amidst broader industry challenges. Furthermore, the potential for expansion to 900 Texas Roadhouse units and sustained margins within the 17-18% range suggests a promising growth trajectory for the company.
Bears say
Texas Roadhouse Inc. is facing a challenging financial outlook characterized by declining same-store sales (SSS) growth estimates, which have been conservatively reduced to 3.0% for Q1 and further lowered to 4.0% for 2025, down from prior expectations. Additionally, the company anticipates a margin decline of 70 basis points for the year, falling to 16.7%, primarily due to menu pricing dynamics that are expected to decrease from 3.1% in Q1 to 2.3% in subsequent quarters. Labor inflation pressures, projected at 4-5%, compound the difficulties, especially given the soft start to 2025 for the restaurant industry, indicating a broader struggle for Texas Roadhouse amid broader market conditions.
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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