News Summary
Texas Roadhouse is experiencing remarkable growth, with sales reaching nearly $1.5 billion and a 10% increase marking eight consecutive quarters of double-digit gains. Despite leadership changes causing some market uncertainty, analysts maintain a generally positive outlook for the restaurant chain, which boasts a significant presence across 49 states and 10 countries. With promising sales forecasts and solid financials, Texas Roadhouse continues to be an attractive investment option, offering both delicious dining and appealing dividends.
Texas
Texas Roadhouse, a leading casual dining chain, has reported strong sales growth for Q1 2025, despite a recent leadership change. The company generated nearly $1.5 billion in revenue during this quarter, reflecting a 10% growth and extending its streak to at least eight consecutive quarters of double-digit growth. This positive momentum comes even as Wall Street analysts forecast further revenue increases, projecting Texas Roadhouse could exceed $1.5 billion in Q2 2025, with a predicted 12% gain compared to the same quarter last year.
In addition to strong sales figures, Texas Roadhouse reported a 1% earnings growth to $1.70 per share for Q1 2025. Analysts expect earnings to rise further, predicting a 6% increase to $1.89 per share for Q2 and an 11% increase to $1.40 in Q3. For the full year, the company’s earnings growth is expected to reach 3%, resulting in an estimated $6.69 per share, followed by a significant 13% rise to $7.56 in 2026. The company continues to reward shareholders with a quarterly dividend, currently yielding 1.45%.
However, the company’s stock experienced fluctuations following the announcement that Chief Financial Officer Chris Monroe had left the organization. As a result, Texas Roadhouse shares traded down to $187.63, falling below the 21-day exponential moving average. Analysts note that the company’s shares are currently forming a cup-with-handle pattern, with a buy point identified at $199.99. Positive technical indicators have emerged, as the 21-day line has climbed back above the 50-day moving average.
Despite the recent challenges, analysts remain optimistic about the future growth potential of Texas Roadhouse. Ratings from analysts show a blend of holds and buys, with an average price target set at $187.15. The stock has attracted significant interest from institutional investors, who own about 94.82% of the company’s shares, indicating strong backing within the investment community. Analyst Stephen has designated an Equal Weight rating with a price target of $170, commenting on the company’s market positioning and execution strategy.
Company Overview and Market Environment
Texas Roadhouse operates casual dining restaurants across 49 states, one U.S. territory, and 10 foreign countries. With a diverse menu featuring items such as the “Road Kill” chop steak and “Fall-Off-The-Bone Ribs,” the chain is well-established in the casual dining sector. The company has a total of 728 Texas Roadhouse locations, in addition to 50 Bubba’s 33 casual dining locations and 14 Jaggers fast-casual restaurants.
In terms of financial performance, Texas Roadhouse boasts a net margin of 8.07% and a stellar return on equity of 34.02%. The company has a market capitalization of $12.45 billion with a P/E ratio of 29.03 and a price-to-earnings-growth ratio of 1.23. Recent insider transactions included Director Gregory N. Moore selling 1,000 shares and Director Donna E. Epps selling 800 shares, indicating a slight decrease in insider ownership.
In summary, Texas Roadhouse is maintaining strong growth trajectories in sales and earnings amidst executive changes and fluctuating market conditions. As the company looks ahead to the next quarter, many eyes will be on its ability to continue this positive trend while navigating any macroeconomic challenges that may arise.
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Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
