Why Texas Roadhouse Shares Are Falling Today

Texas Roadhouse Inc TXRH shares are trading lower by 5.09% to $99.80 Friday morning after the company reported worse-than-expected fourth-quarter results.

What Happened?

Texas Roadhouse reported quarterly earnings of 89 cents per share which missed the analyst consensus estimate of $1.03. The company also reported quarterly sales of $1.01 billion which missed the analyst consensus estimate of $1.02 billion by 1%. This sales figure is a 12.7% increase over sales of $895.59 million in the same period last year.

For the fourth quarter, as compared to the prior year, restaurant margin, as a percentage of restaurant and other sales, decreased 132 basis points to 14.5% as commodity inflation of 6.6% and wage and other labor inflation of 7.8% were partially offset by higher sales.

See Also: Peter Schiff Says 'Lot Of Inflation Left In The Pipeline,' Warns Of More Price Hikes

Meanwhile restaurant margin dollars increased 3.4% to $145.6 million from $140.8 million in the prior year primarily due to higher sales.

Analyst Rating Updates

Additionally, TXRH received a number of analyst rating updates Friday including:

• Stephens & Co. analyst Joshua Long reiterated with a Equal-Weight and maintains $86 price target.
• Stifel analyst Chris O'Cull downgraded from Buy to Hold and lowers the price target from $110 to $105.
• Wedbush analyst Nick Setyan maintained with a Outperform and raises the price target from $111 to $114.
• Baird analyst David Tarantino maintained with a Neutral and raises the price target from $98 to $108.
• Credit Suisse analyst Lauren Silberman maintained with a Outperform and lowers the price target from $118 to $115.

According to data from Benzinga Pro, TXRH has a 52-week high of $107.31 and a 52-week low of $68.58.