Texas Roadhouse Stock Target Price Raised by Analyst to $219.00 USD.

B of A Securities analyst Sara Senatore has raised the target price for Texas Roadhouse (TXRH) from $203 to $219, a 7.88% increase, and maintained a "Buy" rating. The average target price among 22 analysts is $191.23, with a high estimate of $220 and a low of $165. The average brokerage recommendation is 2.5, indicating an "Outperform" status. GuruFocus estimates a GF Value of $168.11 in one year, suggesting a 7.9% downside from the current price.

BofA Securities analyst Sara Senatore has revised the price target for Texas Roadhouse (TXRH) from $203 to $219, a 7.88% increase, while maintaining a "Buy" rating. This adjustment is part of BofA's broader effort to refine its estimates and make selective changes to price targets across its restaurant sector analyses in anticipation of upcoming earnings reports [1].

The average target price among 22 analysts is $191.23, with a high estimate of $220 and a low estimate of $165. The average brokerage recommendation is 2.5, indicating an "Outperform" status. GuruFocus estimates a GF Value of $168.11 in one year, suggesting a 7.9% downside from the current price [2].

Texas Roadhouse reported a revenue growth of 9.6% for the first quarter, driven by a 2.4% increase in average unit volume and 7.1% store week growth. Same-store sales increased by 3.5%, with positive traffic growth contributing to this rise. The company opened 8 company-owned restaurants in the first quarter and is on track to open approximately 30 company-owned restaurants this year. Technology initiatives are progressing well, with 65% of restaurants using a digital kitchen and 70% having upgraded guest management systems. The company ended the first quarter with $221 million in cash, demonstrating strong cash flow management [2].

However, there are some negative points to consider. Restaurant margin as a percentage of total sales decreased by 77 basis points year-over-year to 16.6%. Labor as a percentage of total sales increased by 79 basis points to 33.3%, indicating rising labor costs. Commodity inflation guidance was increased to approximately 4% for the full year, driven by higher beef costs and tariffs. The company experienced a slight decline in restaurant margin dollars per store week, which is unusual for Texas Roadhouse. The rent line increased due to higher rents from recent acquisitions, particularly in California, which may continue to impact margins [2].

References:
[1] https://www.tipranks.com/news/the-fly/texas-roadhouse-price-target-raised-to-219-from-203-at-bofa-thefly
[2] https://www.gurufocus.com/news/2987732/bofa-increases-price-target-for-texas-roadhouse-txrh-to-219-txrh-stock-news