TXRH Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Texas Roadhouse Inc (TXRH) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown positive same-store sales growth in Q1 and plans for expansion, the recent financial performance, insider selling trends, and lack of strong technical or proprietary trading signals suggest that waiting for a better entry point would be prudent.
The technical indicators are neutral to slightly bearish. The MACD histogram is negative and contracting, RSI is neutral at 57.545, and moving averages are converging. The stock is trading near its pivot level of 181.995, with resistance at 188.72 and support at 175.27. There is no clear upward momentum.
Same-store sales increased by 8.2% in early Q1, exceeding analyst expectations.
Plans to open 35 new locations in
Quarterly dividend of $0.75 per share declared.
Q4 financial results missed expectations across revenue, comparable restaurant sales, and EPS.
Insiders are selling, with a 372.68% increase in selling activity over the last month.
Analysts have lowered price targets, citing higher structural costs and limited upside.
Food inflation and beef price pressures are expected to persist, impacting margins.
In Q4 2025, revenue grew by 3.07% YoY to $1.482 billion, but net income dropped by 26.93% YoY to $84.635 million. EPS declined by 26.01% YoY to $1.28, and gross margin decreased by 4.84% YoY to 60.17%. The company is facing margin pressure due to higher costs.
Analysts have mixed views. While some maintain Buy or Outperform ratings, many have lowered price targets due to margin pressures and cost concerns. The average price target is around $188, close to the current price, indicating limited upside potential.
