Texas Roadhouse, Inc. (NASDAQ:TXRH) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

As you might know, Texas Roadhouse, Inc. (NASDAQ:TXRH) recently reported its quarterly numbers. Revenues of US$1.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.26, missing estimates by 4.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Texas Roadhouse

Following the latest results, Texas Roadhouse's 26 analysts are now forecasting revenues of US$5.84b in 2025. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 21% to US$7.08. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.73b and earnings per share (EPS) of US$6.92 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$194, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Texas Roadhouse analyst has a price target of US$242 per share, while the most pessimistic values it at US$158. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Texas Roadhouse's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.7% annually. So it's pretty clear that, while Texas Roadhouse's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Texas Roadhouse following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Texas Roadhouse going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Texas Roadhouse Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.