TXRH’s stock performance
Since the announcement of its 1Q16 results on May 2, 2016, the share price of Kentucky-based Texas Roadhouse (TXRH) is up by almost 10%. The better-than-expected results and steps taken by TXRH to provide great value for its customers have prompted analysts to raise their estimates for the next four quarters, which led to the rise in TXRH’s share price. As of June 10, 2016, the company was trading at $46, a growth of 9.3% from $41.1 on May 2, 2016. Earlier on June 9, 2016, the company’s share price had touched its 52-week high of $46.8.
During the same period from May 2, 2016, to June 10, 2016, TXRH’s peers such like Bloomin’ Brands (BLMN), Darden Restaurants (DRI), and Brinker International (EAT) have returned 0.6%, 6.6%, and -1.5%, respectively. The share price of the broader comparative index, the Consumer Discretionary Select Sector SPDR Fund (XLY) has fallen by 2.2%. XLY has invested 10% of its holdings in restaurants and travel companies.
In this series, we’ll discuss analysts’ revised estimates of Texas Roadhouse’s same-store sales growth, earnings per share, and its valuation multiple. Finally, we’ll look at what analysts are recommending for the stock and their target prices over the next 12 months.
Let’s start by discussing Texas Roadhouse’s revised same-store sales growth estimates for the next four quarters.