Stifel reiterates Hold rating on Texas Roadhouse stock, trims EPS estimate

Published 12/08/2025, 15:26
Stifel reiterates Hold rating on Texas Roadhouse stock, trims EPS estimate

Investing.com - Stifel maintained its Hold rating and $188.00 price target on Texas Roadhouse (NASDAQ:TXRH) following the restaurant chain’s earnings report and 10-Q filing. According to InvestingPro data, the company currently trades at a P/E ratio of 26.78x, with analyst targets ranging from $170 to $227.

The research firm updated its financial model for the company, reflecting higher commodity inflation pressures, particularly expected in the third quarter of 2025.

Stifel partially offset these inflationary concerns with a modestly higher comparable sales projection based on quarter-to-date trends the company is experiencing.

The firm reduced its full-year fiscal 2025 earnings per share estimate to $6.59 from its previous estimate of $6.65, representing a slight downward revision.

Stifel’s 12-month target price of $188 for Texas Roadhouse stock remains unchanged despite the EPS adjustment.

In other recent news, Texas Roadhouse reported its second-quarter 2025 earnings, showcasing mixed results. The company achieved revenues of $1.51 billion, surpassing the consensus estimate of $1.49 billion. However, earnings per share fell short at $1.86, compared to the anticipated $1.91. Texas Roadhouse reported a same-store sales growth of 5.8%, exceeding analyst expectations by 60 basis points. Despite these positive sales figures, higher beef costs negatively impacted margins, leading to a "disappointing" earnings result according to BTIG, which raised its price target to $200 while maintaining a Buy rating. Benchmark and Stifel both reiterated their Hold ratings on the stock, noting the mixed performance. Raymond (NSE:RYMD) James also maintained a Market Perform rating, highlighting that while traffic increased by 4.0%, the cost of goods sold and store margins were a concern. These developments reflect ongoing challenges and opportunities for Texas Roadhouse in the current market environment.

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