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Investing.com - Truist Securities has raised its price target on Texas Roadhouse (NASDAQ:TXRH) to $212.00 from $201.00 while maintaining a Buy rating on the restaurant chain’s stock. The company, currently valued at $12.6 billion, has demonstrated strong financial health according to InvestingPro analysis, with a 15% revenue growth over the last twelve months.
The restaurant chain opened four company-owned locations during the second quarter of 2025, including two Texas Roadhouse restaurants and two Bubba’s locations. These openings fell short of consensus estimates of six new locations and were primarily completed early in the quarter, with the new restaurants operating for approximately 67% of the quarter on average. The expansion comes as the company maintains a solid dividend track record, having maintained payments for 15 consecutive years with a current yield of 1.44%.
Texas Roadhouse previously announced plans to acquire three franchise locations during the second quarter. The company continues to expand its portfolio of restaurant concepts, with particular growth in its Bubba’s brand, which has seven locations currently in the hiring phase.
Truist Securities expressed confidence in Bubba’s meeting or exceeding its guidance of seven new openings in 2025, up from four in 2024, which would provide an increasing contribution to Texas Roadhouse’s overall development strategy.
The investment firm maintained its estimate for 30 new company-owned store openings in 2025, which aligns with both consensus estimates and Texas Roadhouse’s own guidance.
In other recent news, Texas Roadhouse reported first-quarter 2025 revenues of $1.45 billion, surpassing consensus estimates of $1.44 billion. The restaurant chain’s comparable store sales increased by 3.5%, exceeding both Stifel’s projection of 2.0% and the broader market expectation of 3.0%. However, the company’s earnings per share (EPS) for the quarter came in at $1.70, falling short of the expected $1.76, due to pressures on restaurant-level operating margin. In addition, Texas Roadhouse announced that CFO Chris Monroe has left the company, with Keith Humpich stepping in as interim CFO. The company has engaged an executive search firm to find a permanent successor.
Shareholders recently ratified KPMG LLP as the independent auditors for fiscal year 2025 and approved all director nominees at the Annual Meeting. However, a shareholder proposal for disclosing the company’s Consolidated EEO-1 Report was not approved. In analyst updates, JPMorgan raised its price target for Texas Roadhouse to $200, citing strong customer value propositions and above-average annual unit volumes, despite high prime costs. Meanwhile, Stifel increased its price target to $180, maintaining a Hold rating, and Benchmark also maintained a Hold rating due to mixed earnings results and broader economic uncertainties.
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