Pick Texas Roadhouse for new buying

Article Excerpt

TEXAS ROADHOUSE $52.49 (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (502-426-9984; www.texasroadhouse.com; Shares o/s: 71.8 million; Market cap: $3.9 billion; Divd yield: 2.3%) is a full-service, casual-dining chain with 588 locations spread across 49 U.S. states and 10 foreign countries. Its restaurants operate under two banners—Texas Roadhouse (563 locations) and Bubba’s 33 (25). Most outlets are company-owned restaurants. In the quarter ended ended March 26, 2019, revenue rose 10.0%, to $690.6 million from $627.7 million a year earlier. Same-store sales increased 5.2% for company-owned restaurants and 4.3% for franchise locations. Texas Roadhouse opened four company restaurants, two international franchise restaurants and one Bubba’s 33 in the latest quarter. Despite the higher sales, overall earnings fell 7.6%, to $50.4 million, or $0.70 a share, from $54.5 million, or $0.76, a year earlier. The decrease came mostly from higher labour costs. To help hold up profits, Texas Roadhouse raised menu prices by about 1.7% in mid-November. It also raised prices by a further 1.5% in early April…

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