Now is a good time for you to buy this eatery

Article Excerpt

Since COVID-19, Texas Roadhouse has dropped along with the market, but we think it’s well-positioned to weather the storm and then bounce back even stronger. As concern over the COVID-19 virus spreads, it’s highly likely that people will visit restaurants less. But Texas Roadhouse—with its winning formula of moderately priced but high-quality food—is primed for takeout business. It now lets customers order food by phone for pick up, and delivery to homes, hotel rooms, hospitals, etc. Its own mobile ordering app also encourages repeat business. The company has so far protected its profit margins by staying out of delivery vendor agreement with Grubhub, DoorDash, Postmates or Uber Eats. However, several vendors, such as Grubhub, can still satisfy consumer demand for Texas Roadhouse fare: They order the food on the company’s app and deliver it to their customers for an additional charge. Under that scenario, Texas Roadhouse gets the business without having to share revenue with the vendor. If COVID-19 persists, the company may look…

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