Topic: How To Invest

Stock Pickers Digest Hotline – Friday, May 3, 2019

Article Excerpt

TEXAS ROADHOUSE INC., $54.72, 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) and Bubba’s 33 (25). Most outlets are company-owned. For the most-recent quarter, ended March 26, 2019, overall revenue rose 10.0%, to $690.6 million from $627.7 million a year earlier. Same-store sales increased 5.2% for company-owned restaurants and 4.3% for franchise locations in the U.S. Texas Roadhouse opened four company restaurants, two international franchise restaurants and one Bubba’s 33 in the latest quarter. Despite the higher sales, overall earnings fell 7.6%, to $50.4 million, or $0.70 a share, from $54.5 million, or $0.76, a year earlier. The decrease came mostly from higher labour costs. To help hold up profits, Texas Roadhouse raised menu prices by about 1.7% in mid-November. It also raised prices by a further 1.5% in early April 2019. The company also plans to…

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