Jefferies Upgrades Texas Roadhouse (TXRH) to Buy

Jefferies analyst Andy Barish upgraded Texas Roadhouse (NASDAQ: TXRH) from Hold to Buy with a price target of $190.00 (from $186.00).

The analyst comments: “We see an attractive entry point following the pullback in stock and underperformance vs CD peers (-4% YTD vs +50%), particularly for a consistent, quality growth story that should sustain above-peer sales & EBITDA growth. With fundamentals intact (incl pos. traffic), we also see easing beef inflation as a potential source of incremental EBITDA upside in '27+, creating a path to stock upside without needing to stretch the multiple. Upgrade to Buy, PT to $190.

We expect CD category SSS to remain resilient, and note recent trends have outperformed that of the broader industry which we believe can be attributed to shifting preferences towards more 'experiential' dining out occasions that consumers continue to budget for. These occasions are more difficult to replace/replicate at home versus QSR (i.e. trading down to grocery and/ or alternative channels such as c-store), a view that could continue to support category trends and benefit the likes of TXRH. We believe a solid track record around quality and consistency of execution should also assuage any investor fears around potential choppiness in demand.”

For an analyst ratings summary and ratings history on Texas Roadhouse click here. For more ratings news on Texas Roadhouse click here.

Shares of Texas Roadhouse closed at $162.18 yesterday.

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