Texas Roadhouse Inc

TXRH: XNAS (USA)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
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Positive First-Quarter Traffic Trends and Solid Early Second-Quarter Results Bolster Texas Roadhouse

Texas Roadhouse TXRH reported impressive first-quarter results despite ongoing food cost inflation that has toppled several of its casual dining peers. The firm generated solid bottom-line growth on the back of positive traffic trends and an improved guest check, and it also announced positive early second-quarter results that have sent the firm's shares higher in early trading. At this point, we plan to reassess our operating assumptions and are placing our $16 fair value estimate under review. We intend to maintain our no-moat rating.

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