Topic: How To Invest

Power Growth Investor Hotline – Friday, February 28, 2020

Article Excerpt

TEXAS ROADHOUSE INC., $56.10, is a buy. The company, symbol TXRH on Nasdaq, is a full-service, casual-dining restaurant chain with 610 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of two banners—Texas Roadhouse (563 locations) or Bubba’s 33 (25). Most outlets are company owned. For the most-recent quarter, ended December 31, 2019, overall revenue jumped 19.7%, to $725.2 million from $605.9 million a year earlier. Same-store sales in the U.S. increased 4.4% for company-owned restaurants and 3.4% for franchisee locations. Texas Roadhouse opened 11 company restaurants (including two Bubba’s 33) and three international franchise restaurants in the latest quarter. Overall earnings in the latest quarter jumped 40.7%, to $42.7 million, or $0.61 a share, from $30.3 million, or $0.42, a year earlier. The higher revenue, plus increased labour productivity and higher average spending per customer more than offset higher labour costs. The company plans to keep expanding: in 2020, it aims to have…

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