Topic: How To Invest

Power Growth Investor Hotline – Friday, November 5, 2021

Article Excerpt

TEXAS ROADHOUSE INC., $95.75, is a buy. The company, symbol TXRH on Nasdaq, is a full-service, casual-dining restaurant chain with 654 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of three banners—Texas Roadhouse (616 locations), sports restaurant Bubba’s 33 (35), and Jaggers (3). Jaggers is a new fast-food concept featuring hamburgers, chicken, milkshakes and salads made from scratch. In the quarter ended September 28, 2021, sales jumped 37.7%, to $868.9 million from $631.2 million a year earlier. As the U.S. economy reopened, same-store sales jumped 30.2% for company-owned restaurants and 33.5% for U.S. franchise locations. Texas Roadhouse made $52.6 million, or $0.75 a share, in the latest quarter. That’s up 80.0% from $29.2 million, or $0.42. 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 all-time…