Texas Roadhouse Inc

TXRH: XNAS (USA)
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Traffic Aids Texas Roadhouse in 4Q, but Food Cost Inflation Remains a Headwind

While Texas Roadhouse TXRH is admittedly facing strong pressure from elevated food costs, particularly for beef, produce, and dairy, the company still posted solid fourth-quarter and yearly results. Given the firm's resilience in withstanding such high food-cost inflation and solid 2012 guidance, we will be placing our fair value estimate under review as we reassess our outlook for Texas Roadhouse.

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