Wedbush Issues Negative Outlook for Texas Roadhouse Earnings

Texas Roadhouse, Inc. (NASDAQ:TXRH) – Analysts at Wedbush reduced their Q1 2025 EPS estimates for shares of Texas Roadhouse in a research note issued to investors on Friday, February 21st. Wedbush analyst N. Setyan now expects that the restaurant operator will earn $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 issued its quarterly earnings data on Thursday, February 20th. The restaurant operator reported $1.73 EPS for the quarter, beating the consensus estimate of $1.66 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.41 billion. Texas Roadhouse had a net margin of 8.07% and a return on equity of 34.02%.

Several other equities analysts also recently commented on the stock. Morgan Stanley raised shares of Texas Roadhouse from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $205.00 to $213.00 in a research note on Tuesday, January 21st. Stifel Nicolaus dropped their price target on shares of Texas Roadhouse from $185.00 to $172.00 and set a “hold” rating for the company in a research note on Friday, February 21st. Citigroup raised their price target on shares of Texas Roadhouse from $212.00 to $213.00 and gave the company a “buy” rating in a research note on Friday, February 21st. Barclays dropped their price target on shares of Texas Roadhouse from $194.00 to $178.00 and set an “equal weight” rating for the company in a research note on Friday, February 21st. Finally, Truist Financial dropped their price target on shares of Texas Roadhouse from $209.00 to $205.00 and set a “buy” rating for the company in a research note on Friday, February 21st. Eleven analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat.com, Texas Roadhouse has an average rating of “Moderate Buy” and a consensus target price of $192.50.

Texas Roadhouse Price Performance

Shares of NASDAQ:TXRH opened at $174.88 on Monday. The company has a market cap of $11.67 billion, a price-to-earnings ratio of 27.03, a PEG ratio of 1.23 and a beta of 1.02. The firm has a 50 day simple moving average of $178.91 and a 200 day simple moving average of $180.30. Texas Roadhouse has a one year low of $146.75 and a one year high of $206.04.

Texas Roadhouse Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Tuesday, March 18th will be issued a $0.68 dividend. This represents a $2.72 dividend on an annualized basis and a yield of 1.56%. This is a boost from Texas Roadhouse’s previous quarterly dividend of $0.61. The ex-dividend date is Tuesday, March 18th. Texas Roadhouse’s dividend payout ratio (DPR) is presently 42.04%.

Insiders Place Their Bets

In other news, insider Christopher C. Colson sold 1,370 shares of Texas Roadhouse 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 completion of the transaction, the insider now directly owns 10,000 shares in the company, valued at $1,794,600. This trade represents a 12.05 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Kingsview Wealth Management LLC lifted its position in shares of Texas Roadhouse by 3.1% during the third quarter. Kingsview Wealth Management LLC now owns 1,771 shares of the restaurant operator’s stock valued at $313,000 after purchasing an additional 54 shares in the last quarter. Cornerstone Investment Partners LLC lifted its position in shares of Texas Roadhouse by 2.7% during the fourth quarter. Cornerstone Investment Partners LLC now owns 2,159 shares of the restaurant operator’s stock valued at $390,000 after purchasing an additional 56 shares in the last quarter. Lifestyle Asset Management Inc. raised its position in Texas Roadhouse by 3.9% in the fourth quarter. Lifestyle Asset Management Inc. now owns 1,603 shares of the restaurant operator’s stock worth $289,000 after acquiring an additional 60 shares during the period. CIBC Asset Management Inc raised its position in Texas Roadhouse by 3.3% in the third quarter. CIBC Asset Management Inc now owns 1,952 shares of the restaurant operator’s stock worth $345,000 after acquiring an additional 62 shares during the period. Finally, MassMutual Private Wealth & Trust FSB raised its position in Texas Roadhouse by 32.2% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 267 shares of the restaurant operator’s stock worth $48,000 after acquiring an additional 65 shares during the period. 94.82% of the stock is currently owned by institutional investors and hedge funds.

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.