Deutsche Bank Likes Texas Roadhouse (TXRH)

Today Deutsche Bank DB published a note after Texas Road House TXRH released Q2 earnings. Deutsche bank is raising their 2010/2011 EPS forecast to $0.81/$0.91 from $0.80/$0.88. They expect lower food costs to continue to provide a nice tailwind to margins in 2H10. DB says "For 2011, TXRH expects to open “more” new stores than in 2010, they did not put a figure on. They continue to model 23 new units vs. 14 in 2010. Management also stated that so far it is not “overly worried” about commodity inflation in 2011, based on initial discussions with suppliers. This gives us higher confidence in our 2011 forecast."