Texas Roadhouse Inc (NASDAQ:TXRH)
Texas Roadhouse, Inc. (TXRH), a global full-service casual dining restaurant company yesterday reported their second quarter 2017 financial results.
TXRH reported second quarter profits of $36.7 million and earnings of $0.53 per share which was exactly in line with analyst expectations .
They also reported second quarter revenues of $566.3 million which beat analyst expectations of $564.5 million.
Texas Roadhouse, Inc. CEO’s Comments
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, “We are pleased with our results for the second quarter highlighted by double-digit growth in both revenue and diluted earnings per share. In addition, our comparable restaurant sales growth, driven by traffic gains, continues to be solid with an increase of 4.6% for the first four weeks of the third quarter. We are on track to open 27 to 29 company restaurants this year. Looking ahead, we remain focused on our long-term growth potential as we continue to fill our new restaurant pipeline for next year and beyond. Finally, the strength of our balance sheet and cash flow allow us to internally fund our new restaurant growth and return excess capital to shareholders through dividends and share repurchases.”
TXRH Technical Analysis
TXRH opened trading yesterday at $48.04 which was up from the previous day’s trading close of $47.70. TXRH closed trading yesterday at $47.30 and spiked up after market to $50.50, equivalent to a 7% increase from the closing price. Taking a look at the daily chart we can see the last time TXRH traded above these levels we have to go back to July 25th when it traded at $50.59.
Taking a closer look at the daily chart we can see that before the spike up TXRH had been in an overall downward trend dating back to June 9th when it traded at $51.71. TXRH has a float of 65.2 million shares and traded 2.65 times the normal daily trading volume on Monday.
For trading purposes, I would like to see TXRH open trading on Tuesday above $49.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Texas Roadhouse, Inc., together with its subsidiaries, operates full-service casual dining restaurants in the United States and internationally. The company operates and franchises its restaurants under the Texas Roadhouse name.
It also operates sports restaurants under the Bubba’s 33 name. In addition, the company provides supervisory and administrative services for other franchise restaurants. As of February 21, 2017, it owned and operated 520 restaurants in 49 states and 6 foreign countries. The company was founded in 1993 and is based in Louisville, Kentucky.