Morgan Stanley analyst Brian Harbour has maintained their bullish stance on TXRH stock, giving a Buy rating on November 3.
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Brian Harbour has given his Buy rating due to a combination of factors including Texas Roadhouse’s strong top-line performance, which exceeded expectations with a 6.1% same-store sales increase. This growth reflects consistent consumer demand and a favorable shift towards higher-priced menu items like steaks. Despite the pressure from beef costs impacting margins, other cost areas were well-managed, maintaining overall financial stability.
Harbour also notes that while food inflation is expected to continue, the current valuation of the stock is around historical averages, suggesting a potential upside if beef inflation peaks and demand remains stable. The company’s plans for accelerated unit growth in the coming year further support a positive outlook, making it an attractive long-term investment opportunity. Therefore, Harbour maintains an overweight position, viewing the current market conditions as a strategic entry point for investors.
In another report released on November 3, UBS also maintained a Buy rating on the stock with a $210.00 price target.