Topic: How To Invest

Power Growth Investor Hotline – Friday, November 4, 2022

Article Excerpt

TEXAS ROADHOUSE INC., $98.91, is a buy. The company, symbol TXRH on Nasdaq, is a full-service, casual-dining restaurant chain with 685 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of three banners—Texas Roadhouse (643 locations), sports restaurant Bubba’s 33 (38), and Jaggers (4). Jaggers is a new fast-food concept featuring hamburgers, chicken, milkshakes and salads made from scratch. In the quarter ended September 27, 2022, sales jumped 14.3%, to $993.3 million from $868.9 million a year earlier. As the U.S. economy further reopened, same-store sales rose 8.2% for company-owned restaurants and 6.7% for U.S. franchise locations. Some 13 company restaurants and five international franchise restaurants were opened in the quarter. Texas Roadhouse made $62.3 million, or $0.93 a share. That was up 18.5% from $52.6 million, or $0.75. Profits rose despite higher costs driven by inflation. During the pandemic, the company successfully expanded its takeout, pick-up and delivery business. Its own mobile ordering app…