Texas Roadhouse Growth Offsets Margin Concerns in Stock Review
StockStory points to restaurant expansion and rising same-store sales, while warning that Texas Roadhouse’s gross margin leaves limited room for error.
Key takeaways
- Texas Roadhouse operated 832 locations in its latest quarter and averaged 4.9% annual location growth over two years.
- StockStory cited a two-year average gross margin of 16.4% as a concern.
Texas Roadhouse shares traded at $158.97, up 1.81% from the previous close, as of 20:00 UTC on Oct. 5. In a review published that day, StockStory said the restaurant chain’s expansion and same-store sales growth outweighed concerns about its margins.
The company operated 832 locations in its latest quarter, and its restaurant count grew at an average annual rate of 4.9% over the past two years, according to StockStory. The publisher also cited average year-on-year same-store sales growth of 6.1% over that period.
StockStory identified gross margin as a risk, reporting a two-year average of 16.4%. Its review said the shares were trading at 21.8 times forward earnings, based on a price of $156.38, and noted that they had fallen 4.2% since April while the S&P 500 gained 15.9%.
This article was produced with the help of AI technology. Source: Yahoo Finance
