Topic: How To Invest

Power Growth Investor Hotline – Friday, May 7, 2021

Article Excerpt

TEXAS ROADHOUSE INC., $104.63, is a buy. The company, symbol TXRH on Nasdaq, is a full-service, casual-dining restaurant chain with 637 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of three banners—Texas Roadhouse (602 locations), sports restaurant Bubba’s 33 (32), and Jaggers (3). Jaggers is a new fast-food concept featuring hamburgers, chicken, milkshakes and salads made from scratch. In the quarter ended March 30, 2021, sales rose 22.7%, to $800.6 million from $652.5 million a year earlier. As the U.S. economy reopened, same-store sales jumped 18.5% for company-owned restaurants and 15.2% for U.S. franchise locations. Texas Roadhouse made $64.2 million, or $0.92 a share, in the latest quarter. That was up 300.2% from $16.0 million, or $0.23. Profits jumped along with revenue. During the pandemic, Texas Roadhouse has successfully expanded its takeout, pick-up and delivery business. Its own mobile ordering app is also encouraging repeat business. These moves have propelled the stock to new…