TXRH Should I Buy
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Texas Roadhouse Inc (TXRH) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators are bearish, recent financial performance shows declining profitability, and there are no significant positive catalysts or strong trading signals to justify immediate entry. It is better to wait for a more favorable entry point or stronger positive signals.
The technical indicators are bearish. The MACD is negative and expanding downward, the RSI is neutral at 31.273, and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot level of 169.452, with key support at 165.659 and resistance at 173.246.
The company has announced a menu price increase in April, which could support margins. Additionally, easing beef costs in the second half of the year may act as a catalyst for better performance.
Gross margin also dropped by 4.84%. Analysts have lowered price targets, citing higher structural costs and persistent beef price inflation. The stock is trading near all-time highs, limiting upside potential.
In Q4 2025, revenue increased by 3.07% YoY to $1.48 billion. However, net income dropped by 26.93% YoY to $84.64 million, and EPS fell by 26.01% YoY to $1.28. Gross margin decreased to 60.17%, down 4.84% YoY.
Analysts are mixed to slightly cautious. While some maintain Buy or Overweight ratings, many have lowered price targets due to concerns about higher costs and limited upside. Recent price targets range from $180 to $216, with the average target below the current pre-market price of $166.53.
