Texas Roadhouse Stock Target Cut Despite Strong Sales

Royal Bank of Canada has lowered its price target for Texas Roadhouse (NASDAQ: TXRH) from $235.00 to $220.00, despite maintaining an "outperform" rating on the stock. The revised target suggests a potential upside of 40.03% from the current trading price. This adjustment comes even as Texas Roadhouse continues to report strong sales, highlighting the challenges posed by rising beef costs.

Other analysts have also weighed in on Texas Roadhouse recently. UBS Group increased its price target to $235.00 with a "buy" rating, while Seaport Research Partners initiated coverage with a "buy" rating and a $195.00 target. Morgan Stanley reiterated an "overweight" rating with a $212.00 target, and Weiss Ratings upgraded the stock to a "buy (b)" rating. Citigroup raised its target to $209.00 but maintained a "neutral" rating. Overall, the stock has a "Moderate Buy" consensus rating with an average price target of $209.76.

Texas Roadhouse opened at $157.11 on Monday, with a market capitalization of $10.31 billion and a PE ratio of 25.25. The company reported quarterly earnings of $1.85 per share, beating estimates by $0.02, and revenue of $1.68 billion, up 11.1% year-over-year. Insider sales have been noted, with Lloyd Marshall and Gregory N. Moore selling shares in recent transactions. Institutional investors, including BlackRock Inc. and Capital World Investors, have increased their holdings.

Texas Roadhouse operates and franchises casual dining restaurants under brands like Texas Roadhouse, Bubba's 33, and Jaggers. Founded in 1993 and headquartered in Louisville, Kentucky, the company has grown into an international operator with locations across the United States and select foreign markets.