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TXRH

Texas RoadhouseNasdaqGS:TXRH Stock Report

Last Price

US$79.28

Market Cap

US$5.5b

7D

-9.2%

1Y

-0.5%

Updated

21 Jan, 2022

Data

Company Financials +
TXRH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends4/6

TXRH Stock Overview

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally.

Texas Roadhouse Competitors

Chipotle Mexican Grill

NYSE:CMG

US$38.8b

Restaurant Brands International

NYSE:QSR

US$25.6b

Domino's Pizza

NYSE:DPZ

US$15.8b

Wendy's

NasdaqGS:WEN

US$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Texas Roadhouse
Historical stock prices
Current Share PriceUS$79.28
52 Week HighUS$110.75
52 Week LowUS$73.20
Beta1.05
1 Month Change-9.05%
3 Month Change-11.53%
1 Year Change-0.54%
3 Year Change26.28%
5 Year Change71.16%
Change since IPO605.97%

Recent News & Updates

Jan 19
Texas Roadhouse (NASDAQ:TXRH) Will Be Hoping To Turn Its Returns On Capital Around

Texas Roadhouse (NASDAQ:TXRH) Will Be Hoping To Turn Its Returns On Capital Around

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Dec 17
These 4 Measures Indicate That Texas Roadhouse (NASDAQ:TXRH) Is Using Debt Safely

These 4 Measures Indicate That Texas Roadhouse (NASDAQ:TXRH) Is Using Debt Safely

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Dec 15

Texas Roadhouse: Strong Long-Term Outlook Solidified On Continued Quarterly Outperformance

F3Q2021 revenues of ~$869 million were ~$2 million below analyst projections. Earnings Per Share of $0.75 missed consensus estimates by $0.06. With a view to protect margins, the firm increased menu prices by 4.2%. We are maintaining our 1-year Price Target of  $129/share for TXRH. Reiterate Buy Rating.

Nov 25
Texas Roadhouse, Inc.'s (NASDAQ:TXRH) Intrinsic Value Is Potentially 37% Above Its Share Price

Texas Roadhouse, Inc.'s (NASDAQ:TXRH) Intrinsic Value Is Potentially 37% Above Its Share Price

Today we will run through one way of estimating the intrinsic value of Texas Roadhouse, Inc. ( NASDAQ:TXRH ) by taking...

Shareholder Returns

TXRHUS HospitalityUS Market
7D-9.2%-3.9%-4.0%
1Y-0.5%-6.1%6.6%

Return vs Industry: TXRH exceeded the US Hospitality industry which returned -6.1% over the past year.

Return vs Market: TXRH underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is TXRH's price volatile compared to industry and market?
TXRH volatility
TXRH Average Weekly Movement4.9%
Hospitality Industry Average Movement7.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: TXRH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TXRH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199361,600Jerry Morganhttps://www.texasroadhouse.com

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises Texas Roadhouse and Bubba's 33 restaurants. As of December 29, 2020, it operated 537 domestic restaurants and 97 franchise restaurants.

Texas Roadhouse Fundamentals Summary

How do Texas Roadhouse's earnings and revenue compare to its market cap?
TXRH fundamental statistics
Market CapUS$5.52b
Earnings (TTM)US$211.79m
Revenue (TTM)US$3.21b

26.1x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TXRH income statement (TTM)
RevenueUS$3.21b
Cost of RevenueUS$2.64b
Gross ProfitUS$562.00m
ExpensesUS$350.22m
EarningsUS$211.79m

Last Reported Earnings

Sep 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.04
Gross Margin17.53%
Net Profit Margin6.61%
Debt/Equity Ratio17.6%

How did TXRH perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Texas Roadhouse undervalued compared to its fair value and its price relative to the market?

8.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TXRH ($79.28) is trading below our estimate of fair value ($86.73)

Significantly Below Fair Value: TXRH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TXRH is poor value based on its PE Ratio (26.1x) compared to the US Hospitality industry average (24.6x).

PE vs Market: TXRH is poor value based on its PE Ratio (26.1x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: TXRH is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: TXRH is overvalued based on its PB Ratio (5.2x) compared to the US Hospitality industry average (3x).


Future Growth

How is Texas Roadhouse forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXRH's forecast earnings growth (12.9% per year) is above the savings rate (2%).

Earnings vs Market: TXRH's earnings (12.9% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: TXRH's earnings are forecast to grow, but not significantly.

Revenue vs Market: TXRH's revenue (8.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TXRH's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TXRH's Return on Equity is forecast to be high in 3 years time (23.8%)


Past Performance

How has Texas Roadhouse performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXRH has high quality earnings.

Growing Profit Margin: TXRH's current net profit margins (6.6%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: TXRH's earnings have declined by 0.2% per year over the past 5 years.

Accelerating Growth: TXRH's earnings growth over the past year (288.8%) exceeds its 5-year average (-0.2% per year).

Earnings vs Industry: TXRH earnings growth over the past year (288.8%) exceeded the Hospitality industry 79.7%.


Return on Equity

High ROE: TXRH's Return on Equity (20.3%) is considered high.


Financial Health

How is Texas Roadhouse's financial position?


Financial Position Analysis

Short Term Liabilities: TXRH's short term assets ($537.9M) exceed its short term liabilities ($443.9M).

Long Term Liabilities: TXRH's short term assets ($537.9M) do not cover its long term liabilities ($918.1M).


Debt to Equity History and Analysis

Debt Level: TXRH has more cash than its total debt.

Reducing Debt: TXRH's debt to equity ratio has increased from 7.1% to 17.6% over the past 5 years.

Debt Coverage: TXRH's debt is well covered by operating cash flow (228%).

Interest Coverage: TXRH's interest payments on its debt are well covered by EBIT (56.2x coverage).


Balance Sheet


Dividend

What is Texas Roadhouse current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TXRH's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: TXRH's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: TXRH's dividend payments have been volatile in the past 10 years.

Growing Dividend: TXRH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.3%), TXRH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TXRH's dividends in 3 years are forecast to be well covered by earnings (49% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Jerry Morgan (60 yo)

1

Tenure

US$3,742,070

Compensation

Mr. Gerald L. Morgan, also known as Jerry, serves as the President at Texas Roadhouse, Inc. since January 8, 2021 and also serves as its Chief Executive Officer since March 19, 2021 and serves as its Direc...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD3.74M) is below average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Insufficient data to compare Jerry's compensation with company performance.


Leadership Team

Experienced Management: TXRH's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: TXRH's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TXRH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Texas Roadhouse, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Texas Roadhouse, Inc.
  • Ticker: TXRH
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$5.521b
  • Shares outstanding: 69.65m
  • Website: https://www.texasroadhouse.com

Number of Employees


Location

  • Texas Roadhouse, Inc.
  • 6040 Dutchmans Lane
  • Louisville
  • Kentucky
  • 40205
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:44
End of Day Share Price2022/01/21 00:00
Earnings2021/09/28
Annual Earnings2020/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.