Update shared on11 Sep 2025
Fair value Increased 0.79%Analysts modestly raised their price target for Texas Roadhouse to $199.17, citing strong traffic, resilient demand among higher-income consumers, and disciplined growth, though margin pressures from rising beef costs remain a concern.
Analyst Commentary
- Bullish analysts are raising price targets on Texas Roadhouse due to solid traffic levels and a positive industry demand backdrop, especially among middle and upper income consumer cohorts.
- Margin concerns persist, as management historically has not fully passed through higher beef prices to consumers, potentially pressuring profits.
- Sentiment around the restaurant sector has become more optimistic entering Q2, with better industry performance expected compared to Q1.
- Strong unit economics, disciplined growth, and robust capital allocation are seen as differentiating factors favoring Texas Roadhouse against intensified competition from grocers and convenience stores.
- Expansion of Bubba's store pipeline and new unit openings are expected to contribute positively to overall company development and support raised guidance.
What's in the News
- Completed share repurchase of 175,983 shares (0.26%) for $30 million under the February 2025 buyback program.
- Reiterated 2025 earnings expectations, projecting positive comparable restaurant sales growth and approximately 5% store week growth, supported by menu pricing actions.
Valuation Changes
Summary of Valuation Changes for Texas Roadhouse
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $197.61 to $199.17.
- The Future P/E for Texas Roadhouse remained effectively unchanged, moving only marginally from 27.68x to 27.90x.
- The Consensus Revenue Growth forecasts for Texas Roadhouse remained effectively unchanged, at 9.1% per annum.
Disclaimer
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