Topic: How To Invest

Stock Pickers Digest Hotline – Friday, November 2, 2018

Article Excerpt

TEXAS ROADHOUSE, $62.10, symbol TXRH on Nasdaq, is a full-service, casual dining restaurant chain with 570 locations spread across 49 U.S. states and eight foreign countries. Its restaurants operate under two banners—Texas Roadhouse (545 locations) and Bubba’s 33 (25). Most outlets are company-owned. For the most-recent quarter, ended September 30, 2018, overall revenue rose 10.0%, to $594.6 million from $540.5 million a year earlier. Same-store sales increased 5.5% for company-owned restaurants and 4.2% for franchise locations in the U.S. Texas Roadhouse opened three company restaurants and one international franchise restaurant in the latest quarter. The company’s earnings fell 6.1%, to $29.1 million, or $0.40 per share, from $31.0 million, or $0.43, a year earlier. That was well below the consensus estimate of $0.54. The decline was mostly due to higher labour costs, as well as other expenses. That was partially offset by the higher revenue and lower income tax expense. To boost profitability, Texas Roadhouse will raise menu prices by about 1.7% in…

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