Topic: How To Invest

Power Growth Investor Hotline – Friday, October 30, 2020

Article Excerpt

TEXAS ROADHOUSE INC., $70.03, is a buy. The company, symbol TXRH on Nasdaq, is a full-service, casual-dining restaurant chain with 623 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of two banners—Texas Roadhouse (592 locations) or sports restaurant Bubba’s 33 (31). Most outlets are company owned. In the quarter ended September 29, 2020, sales fell just 3.0%, to $631.2 million from $650.5 million a year earlier. That’s after a drop of 30.9% in the previous quarter from its year earlier period. Texas Roadhouse’s dining rooms only began reopening in May. In the wake of the coronavirus, same-store sales fell 6.3% for company-owned restaurants and 9.6% for U.S. franchise locations. The company made $29.2 million, or $0.42 a share, in the latest quarter. That was down 20.0% from $36.5 million, or $0.52. Still, the latest earnings widely beat the consensus estimate of $0.18. With the March 2020 payment, it handed investors a 20.0% rise in the…

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