Wedbush Issues Negative Outlook for Texas Roadhouse Earnings

Texas Roadhouse, Inc. (NASDAQ:TXRH) – Analysts at Wedbush cut their Q1 2025 earnings estimates for shares of Texas Roadhouse in a note issued to investors on Friday, February 21st. Wedbush analyst N. Setyan now forecasts that the restaurant operator will post earnings of $1.82 per share for the quarter, down from their previous forecast of $2.03. Wedbush has a “Outperform” rating and a $200.00 price target on the stock. The consensus estimate for Texas Roadhouse’s current full-year earnings is $7.23 per share. Wedbush also issued estimates for Texas Roadhouse’s Q2 2025 earnings at $1.71 EPS, Q3 2025 earnings at $1.44 EPS, Q4 2025 earnings at $1.77 EPS, FY2025 earnings at $6.75 EPS, Q3 2026 earnings at $1.54 EPS, Q4 2026 earnings at $1.88 EPS and FY2026 earnings at $7.34 EPS.

Texas Roadhouse (NASDAQ:TXRH) last posted its quarterly earnings data on Thursday, February 20th. The restaurant operator reported $1.73 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.07. Texas Roadhouse had a net margin of 8.07% and a return on equity of 34.02%. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.41 billion.

A number of other analysts have also commented on the stock. Morgan Stanley raised shares of Texas Roadhouse from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $205.00 to $213.00 in a report on Tuesday, January 21st. Barclays lowered their target price on shares of Texas Roadhouse from $194.00 to $178.00 and set an “equal weight” rating for the company in a report on Friday, February 21st. Stifel Nicolaus lowered their target price on shares of Texas Roadhouse from $185.00 to $172.00 and set a “hold” rating for the company in a report on Friday, February 21st. Gordon Haskett lowered shares of Texas Roadhouse from a “buy” rating to a “hold” rating and set a $192.00 target price for the company. in a report on Wednesday, January 8th. Finally, Citigroup lifted their target price on shares of Texas Roadhouse from $212.00 to $213.00 and gave the stock a “buy” rating in a report on Friday, February 21st. Eleven analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Texas Roadhouse has an average rating of “Moderate Buy” and an average target price of $192.50.

Texas Roadhouse Price Performance

TXRH stock opened at $174.88 on Monday. The company has a 50 day moving average price of $178.91 and a 200 day moving average price of $180.30. Texas Roadhouse has a fifty-two week low of $146.75 and a fifty-two week high of $206.04. The stock has a market capitalization of $11.67 billion, a PE ratio of 27.03, a price-to-earnings-growth ratio of 1.23 and a beta of 1.02.

Institutional Investors Weigh In On Texas Roadhouse

Institutional investors and hedge funds have recently modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. acquired a new position in Texas Roadhouse in the 4th quarter valued at about $30,000. True Wealth Design LLC acquired a new position in Texas Roadhouse in the 3rd quarter valued at about $30,000. Coppell Advisory Solutions LLC grew its stake in Texas Roadhouse by 56.8% in the 4th quarter. Coppell Advisory Solutions LLC now owns 196 shares of the restaurant operator’s stock valued at $35,000 after buying an additional 71 shares during the last quarter. SBI Securities Co. Ltd. acquired a new position in Texas Roadhouse in the 4th quarter valued at about $36,000. Finally, MassMutual Private Wealth & Trust FSB grew its stake in Texas Roadhouse by 32.2% in the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 267 shares of the restaurant operator’s stock valued at $48,000 after buying an additional 65 shares during the last quarter. 94.82% of the stock is owned by institutional investors.

Insider Activity at Texas Roadhouse

In other Texas Roadhouse news, insider Christopher C. Colson sold 1,370 shares of the business’s stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $179.46, for a total transaction of $245,860.20. Following the sale, the insider now directly owns 10,000 shares of the company’s stock, valued at $1,794,600. The trade was a 12.05 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 0.50% of the stock is currently owned by insiders.

Texas Roadhouse Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Tuesday, March 18th will be given a $0.68 dividend. This is a boost from Texas Roadhouse’s previous quarterly dividend of $0.61. This represents a $2.72 annualized dividend and a yield of 1.56%. The ex-dividend date is Tuesday, March 18th. Texas Roadhouse’s payout ratio is currently 42.04%.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc, together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc was founded in 1993 and is based in Louisville, Kentucky.