Why Is Texas Roadhouse (TXRH) Stock Rocketing Higher Today
What Happened:
Shares of restaurant company Texas Roadhouse (NASDAQ:TXRH) jumped 10.9% in the morning session after the company reported fourth-quarter results with revenue and EPS slightly exceeding expectations, based on a same-store sales beat with strong contribution from " higher guest traffic." 2024 guidance was reiterated from the previous time Texas Roadhouse provided an outlook. This outlook specifically called for positive same-store sales next year. Growth is also expected to benefit from the company's continued store expansion, with plans for an additional 30 company-owned restaurants in the current year.
Lastly, the company highlighted its commitment towards returning value to shareholders with EPS growth of 14.3% and a dividend yield of 2.1%, driving a total return of 16.4% in 2023. On the other hand, the company continued to cite inflationary challenges, though management intends to offset these with a 2.2% menu price increase during the year. Overall, it was a decent quarter, showing that the company is staying on track.
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What is the market telling us:
Texas Roadhouse's shares are not very volatile than the market average and over the last year have had nomoves greater than 5%. Moves this big are very rare for Texas Roadhouse and that is indicating to us that this news had a significant impact on the market's perception of the business.
Texas Roadhouse is up 23.8% since the beginning of the year. Investors who bought $1,000 worth of Texas Roadhouse's shares 5 years ago would now be looking at an investment worth $2,252.
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