Piper Sandler analyst Brian Mullan downgraded Texas Roadhouse Inc TXRH to Neutral from Overweight and noted TXRH has simply achieved and moved through the $110 price target.
The analyst is not negative on TXRH but sees a more balanced Risk Reward following strong outperformance since ~mid-October.
On a relative basis, TXRH has outperformed all but one of the other eleven Full Service restaurant stocks in the analyst's coverage.
Notably, the analyst is incrementally cautious on the Full Service restaurant sector entering calendar 2024, given tough industry traffic, harder-to-defend incremental menu pricing, and expected tough comparables.
The analyst sees revenue and EPS of $5.145 billion and $5.34 in FY24 and $5.419 billion and $6.02 in FY25.
In October, TXRH reported Q3 EPS of $0.95, which missed the $1.06 estimate and sales of $1.122 billion, beating the forecast of $1.120 billion.
Price Action: TXRH shares are trading higher by 1.39% at $114.13 on the last check Friday.
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