Operates casual dining restaurants under the Texas Roadhouse brand. Franchises restaurants under the Texas Roadhouse brand. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 14% a year over the last 4 years. Every year shown ended in profit.
The market pays 29.4× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 28% of them.
Analysts' average target sits 18% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit indicators sit around the sector average.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Clearly above the class average — a step short of the very top.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 15% below its peak. The market has trimmed its expectations for the company.
Over the last 4 years, sales grew about 14% a year on average.
It pays out $2.93 per share each year — regular cash for whoever holds the stock.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 28/100.
On our five-subject report card, TXRH sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: TXRH is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
Analysts’ average target sits above today’s price, yet the valuation grade (28/100) says the stock isn’t cheap.