Texas Roadhouse stock has seen its Fair Value Estimate decrease slightly, moving from $196.33 to $196.16 per share following recent industry and company-specific developments. Analysts remain divided, balancing the restaurant chain’s ongoing sales strength and customer demand with growing concerns over rising input costs and lingering macroeconomic challenges. Stay tuned to learn how investors can monitor shifts in the Texas Roadhouse story as new data and analyses emerge.
Recent analyst reports on Texas Roadhouse reflect a balanced landscape of optimism about continued operational strength and concerns over challenging industry dynamics. The following summarizes current Wall Street views.
🐂 Bullish Takeaways
BofA raised its price target for Texas Roadhouse to $239 from $227 and maintained a Buy rating. The analyst highlights ongoing strength in operational execution, noting that the market may reward restaurants with intact earnings given the general lack of investor enthusiasm in the sector.
Morgan Stanley’s Brian Harbour increased the firm’s price target to $210 from $205 and kept an Overweight rating. He indicated that demand in calendar Q3 was solid overall, even as broader restaurant sector trends slowed in September. Execution and sales momentum are seen as relative strengths.
Across bullish commentary, analysts highlight Texas Roadhouse’s ability to deliver strong same-store sales and traffic. They reward its consistency in growth and operational transparency.
🐻 Bearish Takeaways
UBS lowered its price target to $210 from $220 but maintained a Buy rating. The analyst cautions that while sales momentum likely held up, earnings and margins could be pressured by elevated beef costs, reflecting persistent input cost risks.
BofA, despite its price target increase, notes a more cautious stance due to growing macroeconomic pressures that now impact a broader customer base. The analyst points to investor apprehension about current valuations and the potential that upside is already reflected in the current stock price.
Overall, Texas Roadhouse continues to draw favorable reviews for its operational execution and sales resilience, but analysts remain mindful of rising costs and macroeconomic uncertainty. These factors continue to shape differing outlooks for the company’s valuation and growth prospects.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
Story Continues
NasdaqGS:TXRH Community Fair Values as at Nov 2025
The Fair Value Estimate has declined slightly, from $196.33 to $196.16 per share.
The Discount Rate has decreased marginally, dropping from 8.49 percent to 8.42 percent.
The Revenue Growth projection is essentially unchanged, rising from 9.50 percent to 9.50 percent.
The Net Profit Margin expectation has dipped slightly, from 8.26 percent to 8.23 percent.
The Future Price-to-Earnings (P/E) ratio is virtually flat, moving from 26.51x to 26.50x.
A Narrative is more than just numbers. It is a clear, approachable way to connect a company’s story to its financial forecasts and Fair Value. Narratives let anyone outline what they believe is possible for a business, and how today’s price stacks up to those expectations. On Simply Wall St’s Community page, millions of investors use Narratives to decide when to buy or sell, track dynamic updates as new information arrives, and stay ahead with accessible, story-driven insights.
Interested in what drives Texas Roadhouse’s outlook? Read the full narrative on Texas Roadhouse and stay informed on:
How expanding secondary brands, technology upgrades, and guest satisfaction are powering future growth and operational efficiency
The company’s ability to manage margin risks from beef inflation and labor costs while delivering industry-leading revenue trends
What analysts expect for sales, earnings, and multiples through 2028, and how these forecasts impact the latest fair value estimate
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TXRH.
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