Texas Roadhouse (TXRH) has received a new Buy rating, initiated by Mizuho Securities analyst, .
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Mizuho Securities has given its Buy rating due to a combination of factors that highlight Texas Roadhouse’s potential for growth and market outperformance. The firm anticipates that transaction-led same-store sales (SSS) growth will exceed current expectations, particularly in the third quarter, and continue to outperform through 2026. This growth is expected to be driven by Texas Roadhouse’s ability to manage beef inflation effectively, maintaining an attractive value proposition for customers.
Additionally, Mizuho Securities notes that Texas Roadhouse’s strategic focus on staffing, table management, and off-premise growth is likely to convert existing demand into significant transaction growth. The firm also highlights the company’s plans for unit expansion, particularly in California, which could lead to system unit growth surpassing that of its casual dining peers. With a projected 2026 revenue growth rate significantly higher than the industry average, Mizuho Securities believes that Texas Roadhouse’s valuation premium is justified, supporting their Buy rating.
In another report released on October 24, Bank of America Securities also reiterated a Buy rating on the stock with a $239.00 price target.