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Texas Roadhouse Stock Gains 15% in a Year: How Should You Play It?
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Texas Roadhouse, Inc. (TXRH - Free Report) stock has jumped 14.6% in the past month, significantly outpacing the industry’s modest 5.1% growth and the S&P 500’s 9.5% rise. The steakhouse chain’s strong momentum underscores its robust performance.
As of Tuesday, the stock closed at $177.12, below its 52-week high of $206.04 but well above its 52-week low of $146.75. In the past year, TXRH outperformed industry players like Wingstop Inc. (WING - Free Report) , Domino's Pizza, Inc. (DPZ - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) .
TXRH’s Price Performance
Image Source: Zacks Investment Research
Technical indicators imply TXRH's continued strong performance. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment, and confidence in TXRH's financial health and prospects.
Texas Roadhouse’s 50-Day Moving Average
Image Source: Zacks Investment Research
Positive Factors Aiding TXRH Performance
Texas Roadhouse continues to benefit from strong sales momentum, restaurant openings and customer engagement initiatives. Robust comparable sales, underpinned by higher traffic growth across its brands, bode well.
In 2024, the company expanded its footprint by opening 31 company-owned restaurants and 11 international franchise locations, reinforcing its growth strategy. In 2025, it plans to open 30 company-owned restaurants and relocate several high-performing locations to larger spaces to accommodate increased demand.
Additionally, TXRH is committed to its expansion strategy, with seven international franchise openings and continued investment in its Bubba’s 33 and Jaggers brands.
Texas Roadhouse benefits from its pricing strategy, implementing moderate price increases while maintaining a strong value proposition. Customer demand remained robust, with menu enhancements, including the latest beverage offerings, resonating well with consumers. TXRH's focus on digital innovations, such as the rollout of digital kitchen conversions and upgraded guest management systems, improved efficiency and service quality.
Financially, the company maintained a healthy balance sheet, generating a substantial cash flow. This supported its self-funded capital expenditure, increased dividend payouts and an expanded share repurchase program, all of which reinforced investor confidence.
Texas Roadhouse’s Bottom Line Improves
TXRH is on a solid earnings growth trajectory, with projections signaling continued momentum. The company is expected to post earnings of $7.02 per share in 2025, marking an 8.5% year-over-year increase. This strength is forecast to extend into 2026, with earnings projected to rise to $7.88 per share, reflecting a 12.2% annual jump.
This steady earnings expansion highlights TXRH’s strong upside potential and bolsters confidence in its long-term growth story.
What Might Hurt TXRH Stock Price?
Despite the positive momentum, Texas Roadhouse faced headwinds in 2024 and early 2025. Inflationary pressures in wages and commodity costs, particularly in beef supply, led to increased operational expenses. Labor costs remained challenging, with state-mandated wage hikes and benefits expenses contributing to higher overall costs.
The company is also grappling with adverse weather conditions, including winter storms across multiple regions, which have negatively impacted sales in early 2025.
Buy, Sell, or Hold Texas Roadhouse Stock
TXRH has demonstrated strong momentum, driven by robust sales growth, restaurant expansion and effective pricing strategies. The company’s focus on operational efficiency, digital innovation and customer engagement has reinforced its competitive edge. A solid balance sheet supports ongoing investments, dividend payouts and share buybacks, enhancing shareholder value. However, inflationary pressures, rising labor costs and weather-related disruptions pose challenges that could weigh on margins.
Given the stock's recent surge and strong fundamentals, existing investors may benefit from holding their positions, while new investors might consider waiting for a more favorable entry point, especially amid near-term cost pressures and broader market uncertainties. The company currently has a Zacks Rank #3 (Hold).
Image: Bigstock
Texas Roadhouse Stock Gains 15% in a Year: How Should You Play It?
Texas Roadhouse, Inc. (TXRH - Free Report) stock has jumped 14.6% in the past month, significantly outpacing the industry’s modest 5.1% growth and the S&P 500’s 9.5% rise. The steakhouse chain’s strong momentum underscores its robust performance.
As of Tuesday, the stock closed at $177.12, below its 52-week high of $206.04 but well above its 52-week low of $146.75. In the past year, TXRH outperformed industry players like Wingstop Inc. (WING - Free Report) , Domino's Pizza, Inc. (DPZ - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) .
TXRH’s Price Performance
Image Source: Zacks Investment Research
Technical indicators imply TXRH's continued strong performance. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment, and confidence in TXRH's financial health and prospects.
Texas Roadhouse’s 50-Day Moving Average
Image Source: Zacks Investment Research
Positive Factors Aiding TXRH Performance
Texas Roadhouse continues to benefit from strong sales momentum, restaurant openings and customer engagement initiatives. Robust comparable sales, underpinned by higher traffic growth across its brands, bode well.
In 2024, the company expanded its footprint by opening 31 company-owned restaurants and 11 international franchise locations, reinforcing its growth strategy. In 2025, it plans to open 30 company-owned restaurants and relocate several high-performing locations to larger spaces to accommodate increased demand.
Additionally, TXRH is committed to its expansion strategy, with seven international franchise openings and continued investment in its Bubba’s 33 and Jaggers brands.
Texas Roadhouse benefits from its pricing strategy, implementing moderate price increases while maintaining a strong value proposition. Customer demand remained robust, with menu enhancements, including the latest beverage offerings, resonating well with consumers. TXRH's focus on digital innovations, such as the rollout of digital kitchen conversions and upgraded guest management systems, improved efficiency and service quality.
Financially, the company maintained a healthy balance sheet, generating a substantial cash flow. This supported its self-funded capital expenditure, increased dividend payouts and an expanded share repurchase program, all of which reinforced investor confidence.
Texas Roadhouse’s Bottom Line Improves
TXRH is on a solid earnings growth trajectory, with projections signaling continued momentum. The company is expected to post earnings of $7.02 per share in 2025, marking an 8.5% year-over-year increase. This strength is forecast to extend into 2026, with earnings projected to rise to $7.88 per share, reflecting a 12.2% annual jump.
This steady earnings expansion highlights TXRH’s strong upside potential and bolsters confidence in its long-term growth story.
What Might Hurt TXRH Stock Price?
Despite the positive momentum, Texas Roadhouse faced headwinds in 2024 and early 2025. Inflationary pressures in wages and commodity costs, particularly in beef supply, led to increased operational expenses. Labor costs remained challenging, with state-mandated wage hikes and benefits expenses contributing to higher overall costs.
The company is also grappling with adverse weather conditions, including winter storms across multiple regions, which have negatively impacted sales in early 2025.
Buy, Sell, or Hold Texas Roadhouse Stock
TXRH has demonstrated strong momentum, driven by robust sales growth, restaurant expansion and effective pricing strategies. The company’s focus on operational efficiency, digital innovation and customer engagement has reinforced its competitive edge. A solid balance sheet supports ongoing investments, dividend payouts and share buybacks, enhancing shareholder value. However, inflationary pressures, rising labor costs and weather-related disruptions pose challenges that could weigh on margins.
Given the stock's recent surge and strong fundamentals, existing investors may benefit from holding their positions, while new investors might consider waiting for a more favorable entry point, especially amid near-term cost pressures and broader market uncertainties. The company currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.