Texas Roadhouse prospers despite COVID-19

Article Excerpt

With onset of the COVID-19 pandemic, Texas Roadhouse dropped alongside the market. But the restaurant chain used smart strategies to rebound and climb to new highs. We think the company is well-positioned to capitalize on its popular food offerings to keep attracting more dine-in, pick-up and takeout customers. That bodes well for its prospects as the U.S. economy normalizes. We recommend this stock as a Power Buy. TEXAS ROADHOUSE, $91.29, is a buy. The company (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (www.texasroadhouse.com; Shares outstanding: 69.6 million; Market cap: $6.4 billion; Dividends yield: 1.8%) is a full-service, casual-dining restaurant chain with 654 locations spread across 49 U.S. states and 10 foreign countries. Each of those restaurants operates under one of three banners—Texas Roadhouse (616 locations), sports restaurant Bubba’s 33 (35), and Jaggers (3). Jaggers is a new fast-food concept featuring hamburgers, chicken, milkshakes and salads made from scratch. In the quarter ended September 28, 2021, sales jumped 37.7%, to $868.9 million from $631.2 million a year earlier…