Texas Roadhouse Set to Announce Q4 Earnings on February 18
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy TXRH?
Source: seekingalpha
- Earnings Announcement Date: Texas Roadhouse (TXRH) is set to release its Q4 2023 earnings report on February 18 after market close, with consensus EPS estimated at $1.50 and revenue projected at $1.5 billion, reflecting a 4.9% year-over-year growth, which will provide crucial insights into the company's financial health.
- Performance Expectation Analysis: Over the past year, TXRH has beaten EPS and revenue estimates 50% of the time, indicating a degree of stability for the company amidst challenges in the restaurant industry, which could influence investor sentiment positively.
- Estimate Revision Dynamics: In the last three months, TXRH's EPS estimates have seen four upward revisions and thirteen downward revisions, while revenue estimates have experienced three upward and ten downward revisions, suggesting a divergence in analyst outlooks that may affect investor confidence.
- Beef Price Impact: U.S. beef prices are forecasted to remain elevated, although analysts predict that Texas Roadhouse may see relief from beef inflation by 2026, which could significantly impact the company's cost structure and profit margins moving forward.
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Analyst Views on TXRH
Wall Street analysts forecast TXRH stock price to rise
17 Analyst Rating
7 Buy
10 Hold
0 Sell
Moderate Buy
Current: 186.900
Low
155.00
Averages
190.04
High
228.00
Current: 186.900
Low
155.00
Averages
190.04
High
228.00
About TXRH
Texas Roadhouse, Inc. is a restaurant company operating predominantly in the casual dining segment. The Company maintains three restaurant concepts operating as Texas Roadhouse, Bubba’s 33, and Jaggers. Texas Roadhouse is a full-service, casual dining restaurant concept offering an assortment of specially seasoned and aged steaks hand-cut daily on the premises and cooked to order over open grills. Bubba’s 33 is a full-service, casual dining restaurant concept featuring scratch-made food for all with a little rock 'n' roll, ice-cold beer, and signature cocktails. Its menu features burgers, pizza, wings, sandwiches and others. Its Jaggers is a fast-casual restaurant concept offering burgers, hand-breaded chicken sandwiches and chicken tenders, made-to-order fresh salads, and hand-spun milkshakes. Jaggers offer drive-thru, carry-out, and dine-in service options. It operates approximately 780 restaurants system-wide in 49 states, one United States territory, and 10 foreign countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Texas Roadhouse Set to Announce Q4 Earnings on February 18
- Earnings Announcement Date: Texas Roadhouse (TXRH) is set to release its Q4 2023 earnings report on February 18 after market close, with consensus EPS estimated at $1.50 and revenue projected at $1.5 billion, reflecting a 4.9% year-over-year growth, which will provide crucial insights into the company's financial health.
- Performance Expectation Analysis: Over the past year, TXRH has beaten EPS and revenue estimates 50% of the time, indicating a degree of stability for the company amidst challenges in the restaurant industry, which could influence investor sentiment positively.
- Estimate Revision Dynamics: In the last three months, TXRH's EPS estimates have seen four upward revisions and thirteen downward revisions, while revenue estimates have experienced three upward and ten downward revisions, suggesting a divergence in analyst outlooks that may affect investor confidence.
- Beef Price Impact: U.S. beef prices are forecasted to remain elevated, although analysts predict that Texas Roadhouse may see relief from beef inflation by 2026, which could significantly impact the company's cost structure and profit margins moving forward.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
Fast Casual Market Reversal: Chili's Rises
- Market Trend Reversal: As prices for fast food and fast-casual dining rise, American consumers are returning to traditional sit-down restaurants in 2026, with Chili's reporting an 8.6% same-store sales growth while Chipotle's declined by 2.5%, indicating a significant shift in consumer preferences.
- Strong Performance by Brinker: Brinker International's stock has surged nearly 300% over the past three years, reflecting the success of its Chili's brand in attracting diners, particularly against the backdrop of rising fast-food prices that have driven customers back to sit-down options.
- Challenges for Fast-Casual Brands: Fast-casual brands like Chipotle are facing pressure from discounted low-end fast food and price competition from higher-end sit-down restaurants, threatening their market share, especially as they grapple with rising prices and declining product quality.
- Investor Strategy Adjustment: In the dynamically changing restaurant market, investors should focus on the specific value propositions of individual restaurants rather than overall categories, as Chipotle struggles while Texas Roadhouse and Brinker International thrive by offering good value at reasonable prices.
See More
Market Update: Key Insights Ahead of Closing Bell
- Tech Stock Divergence: Salesforce shares fell over 3%, while CrowdStrike and Palo Alto Networks dropped 4.5% and 2%, respectively, indicating market concerns about AI's impact on enterprise software, which may weaken investor confidence in these companies.
- Apple's Strong Performance: Apple shares rose more than 3.5%, making it the biggest winner on Tuesday, as the market anticipates the unveiling of its latest budget iPhone next month, showcasing its competitive advantage gained from the AI disruption and further solidifying its market position.
- BlackRock Investment Dynamics: ValueAct's stake in BlackRock has garnered attention, with co-CEO Mason Morfit highlighting the unique advantages of BlackRock's Aladdin platform in investment management software, which is expected to enhance investment decision-making efficiency through AI technology, boosting its competitive edge.
- Dover's Order Acceleration: Dover CEO Andrew Tobin noted an acceleration in orders heading into 2026, a trend not seen at the same time last year, particularly in the Clean Energy segment's Fueling Solutions business, which is expected to enter a three-year upcycle, reflecting the company's confidence in future growth.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
Analysis of Big Tech's $650 Billion AI Investment
- Massive Capital Expenditure: In 2026, major tech companies are projected to invest $650 billion in capital expenditures, surpassing the combined spending of 21 major U.S. automakers and energy firms, reflecting immense confidence and enthusiasm for AI investments across the industry.
- Market Reaction and Risks: While the market remains optimistic about AI's potential, concerns about the timeline for returns and economic viability are intensifying, particularly as these companies face high expenditures and the looming risk of an economic bubble.
- Cloud Business Growth: Google Cloud's business grew by 48% over the past year with a 30% operating margin, indicating that while making substantial investments, cloud services remain a crucial revenue pillar for the company, potentially driving further income growth in the future.
- Semiconductor Sector Beneficiaries: As big tech ramps up spending on servers and semiconductors, companies like Nvidia and ASML are expected to be major beneficiaries, with their revenues and margins likely to see significant boosts in the short term, further solidifying their market positions.
See More
Texas Roadhouse Set to Announce Q4 Earnings on February 18
- Earnings Announcement Date: Texas Roadhouse (TXRH) is set to release its Q4 2023 earnings report on February 18 after market close, with consensus EPS estimated at $1.50 and revenue projected at $1.5 billion, reflecting a 4.9% year-over-year growth, which will provide crucial insights into the company's financial health.
- Performance Expectation Analysis: Over the past year, TXRH has beaten EPS and revenue estimates 50% of the time, indicating a degree of stability for the company amidst challenges in the restaurant industry, which could influence investor sentiment positively.
- Estimate Revision Dynamics: In the last three months, TXRH's EPS estimates have seen four upward revisions and thirteen downward revisions, while revenue estimates have experienced three upward and ten downward revisions, suggesting a divergence in analyst outlooks that may affect investor confidence.
- Beef Price Impact: U.S. beef prices are forecasted to remain elevated, although analysts predict that Texas Roadhouse may see relief from beef inflation by 2026, which could significantly impact the company's cost structure and profit margins moving forward.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
Fast Casual Market Reversal: Chili's Rises
- Market Trend Reversal: As prices for fast food and fast-casual dining rise, American consumers are returning to traditional sit-down restaurants in 2026, with Chili's reporting an 8.6% same-store sales growth while Chipotle's declined by 2.5%, indicating a significant shift in consumer preferences.
- Strong Performance by Brinker: Brinker International's stock has surged nearly 300% over the past three years, reflecting the success of its Chili's brand in attracting diners, particularly against the backdrop of rising fast-food prices that have driven customers back to sit-down options.
- Challenges for Fast-Casual Brands: Fast-casual brands like Chipotle are facing pressure from discounted low-end fast food and price competition from higher-end sit-down restaurants, threatening their market share, especially as they grapple with rising prices and declining product quality.
- Investor Strategy Adjustment: In the dynamically changing restaurant market, investors should focus on the specific value propositions of individual restaurants rather than overall categories, as Chipotle struggles while Texas Roadhouse and Brinker International thrive by offering good value at reasonable prices.
See More
Market Update: Key Insights Ahead of Closing Bell
- Tech Stock Divergence: Salesforce shares fell over 3%, while CrowdStrike and Palo Alto Networks dropped 4.5% and 2%, respectively, indicating market concerns about AI's impact on enterprise software, which may weaken investor confidence in these companies.
- Apple's Strong Performance: Apple shares rose more than 3.5%, making it the biggest winner on Tuesday, as the market anticipates the unveiling of its latest budget iPhone next month, showcasing its competitive advantage gained from the AI disruption and further solidifying its market position.
- BlackRock Investment Dynamics: ValueAct's stake in BlackRock has garnered attention, with co-CEO Mason Morfit highlighting the unique advantages of BlackRock's Aladdin platform in investment management software, which is expected to enhance investment decision-making efficiency through AI technology, boosting its competitive edge.
- Dover's Order Acceleration: Dover CEO Andrew Tobin noted an acceleration in orders heading into 2026, a trend not seen at the same time last year, particularly in the Clean Energy segment's Fueling Solutions business, which is expected to enter a three-year upcycle, reflecting the company's confidence in future growth.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
Analysis of Big Tech's $650 Billion AI Investment
- Massive Capital Expenditure: In 2026, major tech companies are projected to invest $650 billion in capital expenditures, surpassing the combined spending of 21 major U.S. automakers and energy firms, reflecting immense confidence and enthusiasm for AI investments across the industry.
- Market Reaction and Risks: While the market remains optimistic about AI's potential, concerns about the timeline for returns and economic viability are intensifying, particularly as these companies face high expenditures and the looming risk of an economic bubble.
- Cloud Business Growth: Google Cloud's business grew by 48% over the past year with a 30% operating margin, indicating that while making substantial investments, cloud services remain a crucial revenue pillar for the company, potentially driving further income growth in the future.
- Semiconductor Sector Beneficiaries: As big tech ramps up spending on servers and semiconductors, companies like Nvidia and ASML are expected to be major beneficiaries, with their revenues and margins likely to see significant boosts in the short term, further solidifying their market positions.
See More
