#5 - Texas Roadhouse (NASDAQ:TXRH)
As we pivot away from fast food and fast-casual, Texas Roadhouse (NASDAQ:TXRH) is a name that’s worth your consideration. These were the restaurants that investors felt would have the hardest time making the switch from a dine-in to take-out offering. And let’s be clear, investors will be keenly interested in the company’s second-quarter earnings report due out in August to see how well the company performed. But very early returns from late March suggest the company may do better than expected.
For example, here’s one tidbit from the company’s first-quarter earnings report that supports the belief that consumers were buying into the new model. Weekly to-go sales jumped from $9 million at the beginning of March to nearly $42 million at the end of March.
It will be interesting to see if Americans retained their appetite for Texas Roadhouse as lockdown measures were extended. It’s possible that many consumers began to “spread the wealth” among chains. And that also doesn’t take into account that many Americans continued to lose their jobs during the lockdown.
However, Texas Roadhouse has already taken measures such as suspending its quarterly dividend to conserve cash. While this is generally not seen as a good thing by investors, in this case, it should allow the company a larger window in which to recover. The stock is essentially flat for the last 12 months.
About Texas Roadhouse
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.
- Current Price
- $166.37
- Consensus Rating
- Hold
- Ratings Breakdown
- 10 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $155.55 (6.5% Downside)
