Last Updated: 11 Nov 2024
Executive Summary
Texas Roadhouse Inc. (TXRH) is a leading casual restaurant chain with a strong track record of growth. The company's fundamentals are solid, with healthy margins, strong cash flow, and a loyal customer base. Technically, the stock is in a bullish trend and is trading above its key moving averages. While the stock is currently trading at a premium valuation, analysts remain optimistic about its long-term prospects.
Company Overview
Texas Roadhouse Inc. operates over 600 casual restaurants in the United States and internationally. The company is known for its steak-centric menu and lively atmosphere. Texas Roadhouse has a strong brand identity and has consistently ranked among the top casual dining chains in customer satisfaction surveys.
Fundamental Analysis
Texas Roadhouse's financial performance has been strong in recent years. The company has reported consistent revenue and earnings growth, even during the COVID-19 pandemic. In the latest quarter, the company reported revenue of $509.98 million, up 13.5% year-over-year. Net income was $63.24 million, up 32.6% year-over-year.
The company's margins are healthy. Gross margin was 67.9% in the latest quarter, up from 66.5% in the same quarter last year. Operating margin was 8.1%, up from 7.6% in the same quarter last year.
Texas Roadhouse has a strong cash flow position. The company generated $102.9 million in operating cash flow in the latest quarter, up from $89.3 million in the same quarter last year. The company has a low level of debt and a strong balance sheet.
Technical Analysis
Texas Roadhouse's stock is in a bullish trend. The stock is trading above its key moving averages and has recently broken out of a bullish triangle pattern. The stock's relative strength index (RSI) is also in bullish territory, indicating that the stock is overbought.
Short Term Outlook
In the short term, Texas Roadhouse's stock is likely to continue to trend higher. The stock is trading above its key moving averages and has recently broken out of a bullish triangle pattern. The stock's RSI is also in bullish territory, indicating that the stock is overbought.
Long Term Outlook
In the long term, Texas Roadhouse's stock is likely to continue to perform well. The company has a strong brand identity, a loyal customer base, and a solid financial foundation. The company is also expected to benefit from the continued growth of the casual dining industry.
Analyst Recommendations
Analysts are generally bullish on Texas Roadhouse's stock. The consensus analyst rating is "Buy." The average analyst target price is $194.79, which represents a potential upside of 1.5% from the current price.
