Evercore upgrades Texas Roadhouse to Outperform, cuts PT to $200
FireAtDusk
Evercore ISI upgraded Texas Roadhouse (TXRH) to "Outperform" from “In Line,” calling the recent share-price decline a "buying opportunity" after the stock fell about 25%.
Analyst Elliott Simon cut its price target to $200 from $220, implying 27.6% upside from the stock's last close.
Simon lowered its second-half 2026 EPS estimate to $2.52 from $2.92, below the consensus of $2.87, citing weaker same-store sales following an "unfortunate hoax" on social media. They expect 2027 EPS of $7.61.
The brokerage said the key catalyst is an “inevitable return to 2%+ traffic growth,” while expecting restaurant margins to recover toward 17%-18% over time. It sees easing beef-cost pressures, labor productivity, and sales leverage supporting the recovery.
The analyst said Texas Roadhouse (TXRH) remains the “best SSS grower in restaurants historically” and highlighted its “long unit-growth runway,” net-cash balance sheet, and growth opportunities from Bubba’s 33 and Jaggers.
The stock was up around 2% in the premarket trading on Monday.
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