Texas Roadhouse price target raised to $170 from $155 at BMO Capital

BMO Capital raised the firm’s price target on Texas Roadhouse (TXRH) to $170 from $155 and keeps a Market Perform rating on the shares. The Restaurant sector is expected to face another difficult year in 2026, with ongoing consumer spending pressure, margin constraints, store closure risk, and limited prospects for multiple expansion, the analyst tells investors in a research note. After a weak 2025 marked by widespread stock declines and double-digit cuts to earnings outlooks, these headwinds are likely to persist or intensify into 2026, BMO says.