Texas Roadhouse (NASDAQ:TXRH) Releases Earnings Results, Misses Expectations By $0.09 EPS

Key Points

• Texas Roadhouse reported an EPS of $1.86 for the quarter, missing expectations by $0.09, while revenue was $1.51 billion, slightly exceeding analyst expectations.
• The company's return on equity stood at 32.33% with a net margin of 7.89%, indicating strong profitability despite the earnings miss.
• Texas Roadhouse faced stock price fluctuations following the report, trading at $174.20 after a decline of $10.81 during mid-day trading on Friday.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) released its quarterly earnings data on Thursday. The restaurant operator reported $1.86 earnings per share for the quarter, missing the consensus estimate of $1.95 by ($0.09), Zacks reports. Texas Roadhouse had a net margin of 7.72% and a return on equity of 32.11%. The firm had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same period in the previous year, the business earned $1.79 earnings per share. The business's revenue for the quarter was up 12.7% on a year-over-year basis.

Texas Roadhouse Stock Performance

Texas Roadhouse stock traded down $12.17 during midday trading on Friday, reaching $172.84. The stock had a trading volume of 3,205,142 shares, compared to its average volume of 793,136. The stock's 50-day simple moving average is $187.61 and its 200 day simple moving average is $179.23. The stock has a market capitalization of $11.47 billion, a PE ratio of 26.39, a price-to-earnings-growth ratio of 2.44 and a beta of 0.86. Texas Roadhouse has a twelve month low of $148.73 and a twelve month high of $206.04.

Texas Roadhouse Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 2nd will be issued a $0.68 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $2.72 dividend on an annualized basis and a yield of 1.6%. Texas Roadhouse's dividend payout ratio (DPR) is presently 41.98%.

Analyst Upgrades and Downgrades

TXRH has been the subject of several research analyst reports. Melius Research raised Texas Roadhouse to a "strong-buy" rating in a research note on Monday, July 14th. Citigroup raised their price objective on Texas Roadhouse from $180.00 to $197.00 and gave the company a "neutral" rating in a research note on Tuesday, July 29th. Stifel Nicolaus raised their price target on Texas Roadhouse from $180.00 to $188.00 and gave the stock a "hold" rating in a research report on Friday, July 25th. Stephens raised their price target on Texas Roadhouse from $184.00 to $190.00 and gave the stock an "equal weight" rating in a research report on Friday. Finally, Morgan Stanley raised their price target on Texas Roadhouse from $200.00 to $205.00 and gave the stock an "overweight" rating in a research report on Monday, July 14th. Ten equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, Texas Roadhouse presently has an average rating of "Moderate Buy" and an average price target of $197.85.

Insider Transactions at Texas Roadhouse

In other Texas Roadhouse news, Director Gregory N. Moore sold 1,000 shares of the business's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $187.62, for a total transaction of $187,620.00. Following the transaction, the director owned 38,050 shares in the company, valued at $7,138,941. The trade was a 2.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Donna E. Epps sold 800 shares of the business's stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $186.52, for a total value of $149,216.00. Following the transaction, the director owned 4,632 shares in the company, valued at approximately $863,960.64. This represents a 14.73% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Focus Partners Wealth lifted its stake in shares of Texas Roadhouse by 23.3% during the first quarter. Focus Partners Wealth now owns 6,124 shares of the restaurant operator's stock worth $1,020,000 after purchasing an additional 1,157 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of Texas Roadhouse by 12.0% during the first quarter. NewEdge Advisors LLC now owns 2,423 shares of the restaurant operator's stock worth $404,000 after acquiring an additional 259 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its position in shares of Texas Roadhouse by 36.0% during the first quarter. Geneos Wealth Management Inc. now owns 419 shares of the restaurant operator's stock worth $70,000 after acquiring an additional 111 shares during the last quarter. Institutional investors and hedge funds own 94.82% of the company's stock.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc, together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc was founded in 1993 and is based in Louisville, Kentucky.