Texas Roadhouse TXRH
Texas Roadhouse is a casual dining steakhouse chain that operates and franchises restaurants in the United States and internationally, focused on beef cuts and a high-volume atmosphere. Texas Roadhouse combines a 27.71% ROE and 20.21% ROIC with 11.10% revenue growth, but earnings are down -0.50% due to beef cost pressure, squeezing an already thin 8.51% operating margin.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Texas Roadhouse is a casual dining steakhouse chain that operates and franchises restaurants in the United States and internationally, focused on beef cuts and a high-volume atmosphere. Texas Roadhouse combines a 27.71% ROE and 20.21% ROIC with 11.10% revenue growth, but earnings are down -0.50% due to beef cost pressure, squeezing an already thin 8.51% operating margin.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 5.9 |
| Valuation | 5.4 |
| Growth | 5.3 |
| Dividend | 6.7 |
| Momentum | 7.6 |
| Risk & Context | 7.4 |
OVERALL SCORE: 6.0/10
Context and risks
No material exposure to the macro context: the crude rally does not directly affect a casual dining chain, and the 10-year yield rise has limited effect given its low leverage (ND/EBITDA 1.25). The main risk is sector-specific: beef costs.
News considered in the analysis
- Despite Record Sales, Texas Roadhouse Has Beef With Beef Costs — Los costes de la carne de vacuno presionan el margen operativo (8.51%), un riesgo material para una parrilla cuyo insumo principal es el beef.
- CAVA vs. Texas Roadhouse: Which Restaurant Stock Has the Edge? — Comparativa genérica entre dos valores de restauración sin información nueva sobre TXRH.
- Darden Misses First-Quarter Revenue Views, Maintains Full-Year Outlook — Noticia de un competidor (Darden) sin impacto directo demostrable en los fundamentales de Texas Roadhouse.
- Your McDonald's Stock Thesis Has One Loose End — Análisis de McDonald's, sin relevancia material para TXRH.
- One Reason McDonald's Stock Looks Better Than Its Price — Opinión sobre McDonald's, sin información nueva sobre Texas Roadhouse.
Verdict: Hold: business quality is solid, but margin compression from beef costs and a demanding valuation (25.56x P/E) limit near-term upside.
Main risk: Exposure to beef costs, which with an 8.51% operating margin could further compress earnings if beef prices keep rising.
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