Zachary Fadem, an analyst from Wells Fargo, maintained the Buy rating on Texas Roadhouse. The associated price target remains the same with $220.00.
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Zachary Fadem has given his Buy rating due to a combination of factors, most notably the strong start to Q1 and expectations for a meaningful earnings rebound in 2027. Despite a softer Q4 marked by slower comparable sales and restaurant-level margin pressure, current-quarter trends are running well ahead of consensus, supported by solid traffic, incremental pricing actions, and continued growth in to-go sales.
Fadem also emphasizes that beef inflation appears on track to peak in Q2 and then ease, while Texas Roadhouse continues to expand its footprint, enhance operations with digital initiatives, and benefit from record sales levels across much of the system. With the company temporarily under-earning as higher G&A and commodity costs weigh on 2026 profits, he views the current valuation multiple as attractive relative to historical levels, creating a favorable risk/reward setup as margins and earnings are poised to recover in 2027.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $208.00 price target.
TXRH’s price has also changed slightly for the past six months – from $175.910 to $182.530, which is a 3.76% increase.