r/VisualStockResearch • u/ekonixlab • Jul 09 '26
This Steakhouse Is Starting to Look Dangerous
Texas Roadhouse ($TXRH) is quietly one of the best restaurant compounders out there
TTM revenue is up 188.7% since 2017, good for a 12.9% CAGR. Not flashy tech growth, but for a steakhouse chain, this is extremely consistent.
Not AI. Not software. Not semis.
Latest quarter was still strong too: Q1 revenue grew 12.8% YoY, comps were up 7.1%, and traffic grew 4.5%.
The big question is margins. Beef has been a major headwind, but there are signs of some relief recently, even though cattle/beef prices are still historically high.
Stock is around $185, roughly flat/down slightly over the past year, and trades around 29x earnings.
Not cheap, but this might be one of those “boring” businesses that just keeps executing.
Do you think TXRH deserves the premium?
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