Truist downgrades Texas Roadhouse on persisting beef price inflation

Truist downgraded Texas Roadhouse (TXRH) to Hold from Buy with a price target of $188, down from $206. The firm believes beef price inflation will persist at least through 2027. This will limit Texas Roadhouse’s multiple expansion and pressure margin and earnings estimates, the analyst tells investors in a research note. Truist views Texas Roadhouse as one of the best positioned restaurants from a demand perspective. But with the stock trading at only a 9% discount from all-time highs, it sees limited upside and would look for a pullback to get more aggressive.