Texas Roadhouse Earnings Sizzle

TXRH is a casual dining chain primarily operating the Texas Roadhouse and Bubba’s 33 brands. The company opened seven new locations and three international franchises in the third quarter, bringing its total to 775, with plans for roughly 30 more openings in 2025. Also, TXRH completed over 200 digital kitchen conversions this year and aims to convert nearly all its restaurants by the end of next year.

Earnings-wise, Texas Roadhouse’s third quarter saw an 8.5% jump in same-store sales and about $1.3 billion in revenue. Though competition, supply-chain inflation, and labor costs remain concerns, TXRH’s guidance for this year and next indicates continued sales growth and manageable costs ahead.

It’s no wonder TXRH shares are up 54% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Eats Up Texas Roadhouse Shares

Institutional volumes reveal plenty. Recently, TXRH has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in TXRH shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with Texas Roadhouse.

Texas Roadhouse Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TXRH has had strong sales and earnings growth:

• 3-year sales growth rate (+25.2%)
• 3-year earnings growth rate (+236.5%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +40.5%.

Now it makes sense why the stock has been powering to new heights. TXRH has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Texas Roadhouse has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when TXRH was a top pick…increasing in value:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Texas Roadhouse Price Prediction

The TXRH rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in TXRH at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.