Topic: How To Invest

Power Growth Investor Hotline – Friday, November 1, 2019

Article Excerpt

TEXAS ROADHOUSE INC., $57.85, is a buy. The company, symbol TXRH on Nasdaq, is a full-service, casual-dining restaurant chain with 588 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 September 24, 2019, overall revenue rose 9.4%, to $650.5 million from $594.6 million a year earlier. Same-store sales in the U.S. increased 4.4% for company-owned restaurants and 3.2% for franchise locations. Texas Roadhouse opened four company restaurants (including one Bubba’s 33) and two international franchise restaurants in the latest quarter. To help lift profits, Texas Roadhouse raised menu prices by about 1.7% in mid-November 2018. It also raised prices by a further 1.5% in early April 2019. Overall earnings in the quarter jumped 25.4%, to $36.5 million, or $0.52 a share, from $29.1 million, or $0.40, a year earlier. Those gains boosted profits by offsetting higher…