Why Jim Cramer is Bullish on Texas Roadhouse (TXRH) in 2024-2025

Jim Cramer, the outspoken host of Mad Money, has long been a vocal advocate for companies that blend resilience with growth potential. In recent analyses, he has singled out Texas Roadhouse (TXRH) as a standout play for investors navigating the 2024-2025 landscape. With its strong brand equity, strategic expansion plans, and proven ability to thrive amid economic headwinds, Texas Roadhouse has emerged as a rare “recession-resilient” stock in the casual dining sector. Here’s why Cramer—and investors—should be taking notice.

The Texas Roadhouse Playbook: Brand Strength Meets Execution

Cramer’s enthusiasm for TXRH starts with its unwavering brand loyalty. Texas Roadhouse has built a reputation as a family-friendly destination with a focus on hearty portions and a welcoming atmosphere. This formula has translated into consistent performance even during challenging times. In late 2023, the company reported same-store sales growth of 7.2% year-over-year, driven by both higher traffic and strategic price increases.

Cramer emphasizes that Texas Roadhouse’s ability to maintain pricing power is critical in an inflationary environment. While peers struggle with rising input costs, TXRH has managed to raise prices by ~2.5% annually without deterring customers—a testament to its value proposition. “They’re not just surviving; they’re thriving by offering what people want at a price they’re willing to pay,” Cramer noted in a recent segment.

Expansion: Fueling Future Growth

Texas Roadhouse’s aggressive yet disciplined expansion strategy is another pillar of its appeal. In 2024, the company opened 15 new locations, exceeding its original target of 14-16, and plans to open 17-19 units in 2025. Notably, this includes international expansions into Mexico and the Middle East—a move Cramer calls “a smart play to diversify revenue streams.”

The company’s long-term goal of reaching 600 domestic locations (up from ~600 as of 2023) suggests ample room for growth. With a focus on underserved markets and a proven track record of same-store sales growth, Texas Roadhouse is positioning itself as a category leader in casual dining.

Financial Resilience: Cash, Dividends, and Flexibility

Texas Roadhouse’s balance sheet is a key reason Cramer remains bullish. As of Q3 2024, the company held $250 million in cash with no debt, providing flexibility for share buybacks or unexpected challenges. Its dividend yield of ~1.8% may not be flashy, but Cramer argues it reflects steady cash flow and conservative management—a rarity in the volatile restaurant sector.

Investors have rewarded this stability. TXRH’s stock surged to a 52-week high of $98 in early 2024 and reached $105 in early 2025, nearing all-time highs. Analysts at Piper Sandler and Wells Fargo have maintained “overweight” ratings, with some targeting $120 by late 2025 if same-store sales stabilize near 5-6% growth—a level the company achieved in Q1 2025.

Navigating the Headwinds

No investment is without risk. Texas Roadhouse faces rising labor and food costs, which slowed same-store sales growth to 3.1% in mid-2024. Cramer acknowledges these challenges but argues that the company’s operational efficiency initiatives—including supply chain optimizations and menu innovation—will keep margins intact.

Additionally, competition from fast-casual chains and economic uncertainty could pressure dining-out spending. Yet Cramer points to Texas Roadhouse’s consistent execution as a differentiator. “They’ve outlasted trends before, and this management team isn’t afraid to adapt,” he said, citing limited-time offers and promotional campaigns that boosted Q1 2025 sales to 5.8% growth.

Conclusion: A Recipe for Long-Term Success

Jim Cramer’s bullish stance on Texas Roadhouse hinges on three pillars: brand loyalty, disciplined expansion, and financial strength. With same-store sales rebounding in early 2025, a fortress balance sheet, and a clear path to 600+ locations, TXRH is well-positioned to capitalize on the casual dining recovery.

While risks like inflation and labor costs linger, Texas Roadhouse’s track record of navigating tough environments—and its ~1.8% dividend—offers investors a defensive yet growth-oriented play. If the company can sustain same-store sales growth above 5% and execute on its expansion plans, a move toward $120 per share by late 2025 seems achievable.

For investors seeking stability in an uncertain market, Texas Roadhouse isn’t just a meal—it’s a meal ticket.