What changed
$TXRH — BUY 📊
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally.
🎯 Q1 FY26 | Rev $2B | EPS $1.87 vs $1.80 🟢
💡 Consensus FY2026 EPS likely around $7.70–7.80, but the Q1 beat and 5–6% store week growth imply potential for $8.00+. The market hasn’t fully priced the compounding effect of unit expansion and moderate cost inflation, with forward P/E near 22x versus historical 18–25x.
📉 Reward/Risk: 3.1:1
🏢 Business Quality: 8/10 - Industry-leading casual dining brand with high ROIC, consistent positive comps, and a disciplined franchise-to-company conversion strategy that enhances long-term margins.
📊 Valuation: fair — Using FY2026E EPS of $8.00, stock trades at 21.7x P/E, in line with its 5-year average of 20–22x.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/TXRH0617
Why it matters
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally.