Texas Roadhouse (TXRH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Texas Roadhouse (TXRH) is well positioned to outperform the market, as it exhibits above-average growth in financials.
SHELTON, CT — A developer's proposal for a Planned Development District in Shelton that includes a Texas Roadhouse restaurant and a hotel now includes housing as well. Plans for the mixed use development at Bridgeport Avenue and Long Hill Crossroads were first submitted to the city over the summer by Crown Point Associates of Shelton II LLC. A public hearing was opened in September and continued to November. The most recent version of those plans, with housing added, were presented to the Planning and Zoning Commission by Derby-based attorney Dominick Thomas on behalf of the applicant during a continued public hearing for the application Wednesday. Under the revised proposal, accessible on the city's website, the development would be comprised of Texas Roadhouse and DQ Grill & Chill restaurants, a 123-room Woodspring Suites hotel, a grocery store, retail and eight residential town house units. According to a revised statement of uses and standards submitted to the city, the site for the proposed PDD contains about 20 acres comprised of three contiguous parcels that has access to Bridgeport Avenue and Long Hill Cross Road. The site is comprised of the 48 Long Hill Cross Road parcel with a house on the 2-acre lot and the abutting 15 acres of vacant land, according to the statement. During the meeting, Thomas noted the plans were revised after issues were raised by the residents of the nearby Hawks Ridge housing complex. "We engaged directly with Hawks Ridge and had discussions concerning their concerns, and my client went back to the drawing board and began to revise the plan to address those concerns," Thomas said. "There have been intensive discussion and emails going on right through, frankly, today and versions going back." According to Thomas, one of the concerns expressed by Hawks Ridge residents involved construction access for the development off of Long Hill Crossroads. Revised plans now call for access from Crown Point Center. Attorney Brian McCann, who represents the Hawks Ridge Association, thanked the applicants for meeting with them on several occasions, having extensive conversations and listening to the concerns of Hawks Ridge residents. "The revised plan in front of you was in essence a direct result of those conversations between the applicant and Hawks Ridge," McCann said. After nearly two hours of presentations and further discussion about the revised plans, the commission moved to continue the public hearing to an upcoming P&Z meeting. Texas Roadhouse, a popular steakhouse chain featuring Texas and southwestern-style American cuisine, currently operates a number of restaurants in Connecticut, including locations in Danbury, Wast Haven, Waterbury, New London, Manchester and Cromwell. DQ operates nearly 40 locations across Connecticut, with nearby stores in Bridgeport, Fairfield, Monroe, Milford, Stratford, New Haven and Stamford. Woodspring Suites operates hotels in a number of states, including New York, New Jersey, Rhode Island, Massachusetts, Florida, Colorado and California. In Connecticut, the chain has a hotel in Newington. A full video of the P&Z meeting can be viewed here.
Texas Roadhouse (TXRH) is well positioned to outperform the market, as it exhibits above-average growth in financials.
TXRH benefits from strong same-store sales growth, strategic unit expansion and operational enhancements.
Texas Roadhouse (TXRH) could produce exceptional returns because of its solid growth attributes.
Texas Roadhouse shares surged early 2024, but tougher comps and declining margins are pulling the stock to more reasonable levels. Next year is shaping up to be tough, with significant deceleration in unit expansion, comparable sales, and margin declines. The long-term growth trajectory of 7%-10% annual revenue growth and 9%-12% EPS growth is not enough to support a 'Buy' at current levels.
Strong earnings and guidance from Texas Roadhouse, Inc. (TXRH) have shares of the casual dining company sizzling.
Does Texas Roadhouse (TXRH) have what it takes to be a top stock pick for momentum investors? Let's find out.
Texas Roadhouse has shown remarkable growth since its IPO, expanding from 162 to nearly 775 units and achieving a 15-fold increase in market value. Q3 2024 saw an 8.5% growth in comparable sales, driven by a 3.8% increase in traffic and a 4.7% rise in average check per guest. The company maintains strong performance through conservative pricing strategies and effective human capital management, reducing labor costs and turnover.
Texas Roadhouse's customer loyalty and satisfaction have driven its stock to double, outperforming the market despite industry concerns and temporary margin hits. The company's Q3 earnings report showed strong revenue growth, increased restaurant margins, and a significant rise in diluted EPS, signaling robust fundamentals. Texas Roadhouse's strategic focus on small, consistent price increases and acquiring franchised restaurants enhances long-term value for customers and shareholders.
Texas Roadhouse NASDAQ: TXRH is a highly valued stock, but it is valued that way because it is the leading restaurant player and has ample growth potential to drive long-term shareholder value increases. The initial reaction to the Q3 results was tepid, but it was nothing more than a meh reaction to solid results and not an indication that the market was topping.