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Texas Roadhouse price target raised to $165 from $145 at RBC Capital

RBC Capital analyst Christopher Carril raised the firm’s price target on Texas Roadhouse to $165 from $145 and keeps a Sector Perform rating on the shares. The company’s Q1 earnings beat was driven by higher comps and lower-than-expected inflation driving restaurant profitability to 17.4% in the quarter, the analyst tells investors in a research note. Quarter-to-date comps decelerated to 9.3% from the 10.2% in March, but they remain well ahead of the Street’s 6.8%, and the company isn’t seeing any evidence of a slowing consumer, the firm added.

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