TXRH Stock Analysis — Texas Roadhouse
Sector: Restaurants
AI Verdict
TXRH trades at 23.5x next year's earnings with 23.6% growth expected, so it's not cheap but the price matches the growth if its operational moat keeps traffic high.
Competitive Moat
Texas Roadhouse operates a value-focused, high-volume casual dining chain with a strong brand and loyal customer base, driving consistent traffic even in competitive markets. Its defensibility comes from disciplined site selection and operational consistency, which make it hard for new entrants to match its unit economics at scale.
Summary
Earnings are expected to jump 23.6% next year, making TXRH one of the fastest-growing names in casual dining.
Where It Stands
Shares trade at 23.5x next year's earnings, a premium to most restaurant peers but in line with its 23.6% forward EPS growth and a fair 1.23 PEG ratio.
Key Metrics
- Trailing P/E: 29.0x
- Forward P/E: 23.5x
- PEG Ratio: 1.23
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Dividend Yield: 0.02%
- 52-Week High: $199.99
- 52-Week Low: $153.82
Analyst Consensus
18 Buy · 19 Hold · 0 Sell (37 analysts)
Bull Case
With forward EPS growth at 23.6% and a forward P/E of 23.5x, investors are getting growth at a price that matches the sector's best names.
Bear Case
If the P/E falls to the restaurant sector's typical 20x, shares would drop about 15% from here even if earnings meet expectations.
Catalyst to Watch
Quarterly same-store sales trends — a slowdown below high-single digits would challenge the current growth narrative.