Should I Buy TXRH? TXRH 2026 Analysis

Should You Buy Texas Roadhouse Inc (TXRH) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

184.020

1 Day change

1.25%

52 Week Range

199.990

Analysis Updated At

2026/01/26

Texas Roadhouse (TXRH) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock shows strong growth potential, supported by bullish technical indicators, positive analyst sentiment, and a favorable long-term outlook. Despite some short-term insider selling and mixed financial performance in Q3 2025, the company's competitive advantage, expected EPS growth, and moderating beef costs make it a solid long-term investment.

Technical Analysis

The technical indicators for TXRH are bullish. The MACD histogram is positive at 0.75, signaling upward momentum, and the moving averages are aligned bullishly (SMA_5 > SMA_20 > SMA_200). The RSI is neutral at 62.111, and the stock is trading near its pivot point of 189.204, with resistance levels at 195.698 and 199.71. The stock is in a strong uptrend, supported by its recent price action.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Analysts have raised price targets recently, with the highest target at $220, reflecting confidence in the stock's future performance.
Same-store sales growth is projected to continue at 5.4% in 2026 and 4.5% in
Declining beef prices are expected to reduce costs, which account for 50% of the company's cost of goods sold.
The company has gained 17% in 2026, reflecting strong market confidence.
Jim Cramer maintains a positive outlook on the stock, forecasting further growth.

Neutral/Negative Catalysts

Insiders are selling shares, with a 372.68% increase in selling activity over the last month.
Q3 2025 financials showed a decline in net income (-1.47% YoY), EPS (-0.79% YoY), and gross margin (-3.85% YoY).
The restaurant sector faces ongoing headwinds, including slowing job growth, consumer confidence, and commodity inflation.

Financial Performance

In Q3 2025, Texas Roadhouse's revenue increased by 12.83% YoY to $1.44 billion, showcasing strong top-line growth. However, net income dropped by 1.47% YoY to $83.17 million, and EPS declined by 0.79% YoY to 1.25. Gross margin also contracted by 3.85% YoY to 60.72%. Despite these mixed results, the company is expected to benefit from moderating beef costs and long-term EPS growth of 23% by 2027.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are broadly positive on TXRH, with multiple firms raising price targets recently. The highest price target is $220 (Wells Fargo), and the lowest is $170 (BMO Capital). Most analysts maintain Buy or Overweight ratings, citing strong same-store sales growth, competitive advantages in value and quality, and a favorable long-term outlook for casual dining.

17 Analyst Rating

Wall Street analysts forecast TXRH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TXRH is 190.04 USD with a low forecast of 155 USD and a high forecast of 228 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

7 Buy

10 Hold

0 Sell

Moderate Buy

Current: 181.750

Low

155

Averages

190.04

High

228

Current: 181.750

Low

155

Averages

190.04

High

228

Goldman Sachs

Neutral

maintain

$175 -> $200

AI Analysis

2026-01-28

New

Reason

Goldman Sachs

Price Target

$175 -> $200

AI Analysis

2026-01-28

New

maintain

Neutral

Reason

Goldman Sachs raised the firm's price target on Texas Roadhouse to $200 from $175 and keeps a Neutral rating on the shares. Restaurant stocks have outperformed the S&P 500 year-to-date, supported by optimism around potential tariff relief, stimulus, and tax cuts, which could boost household consumption, the analyst tells investors in a research note. Despite this, roughly 40% of companies are projected to report negative same-store sales growth in 4Q25, indicating mixed near-term results, Goldman says.

Wells Fargo

Overweight

maintain

$195 -> $220

2026-01-22

Reason

Wells Fargo

Price Target

$195 -> $220

2026-01-22

maintain

Overweight

Reason

Wells Fargo raised the firm's price target on Texas Roadhouse to $220 from $195 and keeps an Overweight rating on the shares. While there's reason to look past mixed Q4 results, the firm believes clear winners/ losers will likely set the 2026 tone. Wells sees Casual Dining outperforming, innovation driving QSR, and Fast Casual inflection pushed out.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for TXRH

Unlock Now

TXRH Should I Buy

TXRH Should I Buy

Should You Buy Texas Roadhouse Inc (TXRH) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch