Restaurant company Texas Roadhouse (NASDAQ:TXRH) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.8% year on year to $1.44 billion. Its GAAP profit of $1.25 per share was 3% below analysts’ consensus estimates.
After a brief and cautious rebound on Wednesday, risk-off sentiment returned sharply on Thursday, with AI-linked stocks leading a broad selloff across Wall Street and renewed pressure hitting crypto markets.
Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders.
Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
From tech titans and international hotel brands to down-home Texas fare and online car shopping, the matchups run from familiar to delightfully unexpected -- plus plenty of banter.
Over the last six months, Texas Roadhouse’s shares have sunk to $160, producing a disappointing 5.9% loss - a stark contrast to the S&P 500’s 16.8% gain. This might have investors contemplating their next move.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
US restaurant spending up 3.7% in August, driven by return to both chain and independent establishments. Income levels and regional markets boost growth.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Texas Roadhouse (TXRH) excels with high earnings growth, a stellar 36.66% ROIC, and zero debt, making it a top Caviar Cruise screening pick for long-term investors.
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Texas Roadhouse (NASDAQ:TXRH) and its peers.
