Texas Roadhouse, Inc. (NASDAQ:TXRH) to Issue Quarterly Dividend of $0.75

Key Points

• Texas Roadhouse declared a quarterly dividend of $0.75 per share, payable December 29 to shareholders of record December 1. That equates to $3.00 annually and a 1.6% yield.
• The dividend appears well covered: the current payout ratio is 39.5%, and analysts expect next year’s earnings to support a payout ratio of about 38.6%. The company has raised its dividend for six consecutive years.
• Quarterly results fell short of analyst expectations: EPS was $1.36 versus $1.46 expected, and revenue was $1.57 billion versus $1.58 billion expected, though revenue increased 9.5% year over year.

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) declared a quarterly dividend on Wednesday, November 4th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $0.75 per share by the restaurant operator on Tuesday, December 29th. This represents a $3.00 annualized dividend and a yield of 1.6%. The ex-dividend date is Tuesday, December 1st.

Texas Roadhouse has increased its dividend payment by an average of 0.5% annually over the last three years and has raised its dividend every year for the last 6 years. Texas Roadhouse has a dividend payout ratio of 39.5% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Texas Roadhouse to earn $7.78 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 38.6%.

Texas Roadhouse Trading Down 2.4%

Shares of NASDAQ:TXRH opened at $191.79 on Friday. The stock's 50-day simple moving average is $173.05 and its two-hundred day simple moving average is $179.11. The stock has a market capitalization of $12.59 billion, a price-to-earnings ratio of 30.69, a PEG ratio of 2.13 and a beta of 0.81. Texas Roadhouse has a 52-week low of $153.82 and a 52-week high of $216.30. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.39 and a current ratio of 0.46.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The restaurant operator reported $1.36 EPS for the quarter, missing the consensus estimate of $1.46 by ($0.10). Texas Roadhouse had a net margin of 6.63% and a return on equity of 27.20%. The business had revenue of $1.57 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same period in the previous year, the company earned $1.25 EPS. Texas Roadhouse's revenue for the quarter was up 9.5% compared to the same quarter last year. Analysts expect that Texas Roadhouse will post 6.48 EPS for the current year.

Analysts Set New Price Targets

Several analysts recently issued reports on TXRH shares. Evercore set a $220.00 target price on shares of Texas Roadhouse in a research report on Friday, September 25th. TD Cowen lifted their price target on shares of Texas Roadhouse from $195.00 to $213.00 and gave the stock a "buy" rating in a research note on Friday. JPMorgan Chase & Co. decreased their target price on Texas Roadhouse from $202.00 to $200.00 and set a "neutral" rating on the stock in a report on Tuesday, September 29th. BMO Capital Markets reiterated a "market perform" rating and set a $190.00 target price on shares of Texas Roadhouse in a research report on Friday. Finally, Weiss Ratings raised Texas Roadhouse from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, September 9th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $208.00.

About Texas Roadhouse

Texas Roadhouse, Inc NASDAQ: TXRH operates full-service casual dining restaurants under the Texas Roadhouse, Bubba's 33 and Jaggers brands. Its restaurants serve made-from-scratch meals centered on hand-cut steaks, ribs, chicken, seafood, burgers and other American-style dishes, along with freshly baked rolls and a selection of beverages.

Founded in 1993, Texas Roadhouse began with its first restaurant in Clarksville, Indiana. The company's restaurant network includes company-owned and franchised locations across the United States, as well as international locations.

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