Gold bars to be exempt from tariffs, White House clarifies
Investing.com - BTIG has raised its price target on Texas Roadhouse (NASDAQ:TXRH) to $200.00 from its previous target while maintaining a Buy rating on the restaurant chain’s stock, which currently trades at $185.01. According to InvestingPro data, analyst targets for TXRH range from $165 to $221, with 7 analysts recently revising their earnings estimates upward.
The price target increase comes despite what BTIG described as "disappointing" quarterly earnings results, which missed estimates due to elevated beef costs that negatively impacted margins. InvestingPro analysis reveals a gross profit margin of 18.56%, reflecting these cost pressures, though the company maintains a "GREAT" overall financial health score.
Despite the earnings miss, Texas Roadhouse reported same-store sales and traffic that exceeded expectations, with mid-single-digit comparable sales growth continuing into the third quarter of the year.
BTIG expressed optimism about Texas Roadhouse’s planned unit acceleration next year, noting that growth is coming from the company’s Bubba’s concept rather than pushing the core Texas Roadhouse brand to expand too rapidly.
While acknowledging that higher beef inflation has proven "sticky," BTIG expects these costs to moderate eventually and remains impressed by the restaurant chain’s continued sales gains despite macroeconomic pressures and competitive promotions.
In other recent news, Texas Roadhouse reported its second-quarter 2025 earnings, showing a mixed performance. The company posted earnings per share (EPS) of $1.86, slightly below the forecasted $1.91. However, revenue reached $1.51 billion, surpassing expectations of $1.5 billion. This mixed result was further highlighted by strong comparable sales growth of 5.8% and a traffic increase of 4.0%. Despite these positive sales figures, Texas Roadhouse faced higher costs of goods sold and lower store margins of 17.1%, which did not meet Raymond (NSE:RYMD) James’ expectation of 17.6%. Following these developments, Raymond James reiterated its Market Perform rating for the company. These recent updates provide investors with insights into the company’s current financial standing and operational challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.