Texas Roadhouse (TXRH) Stock Gains in After-Hours Trading Despite Q1 Miss
NEW YORK (TheStreet) -- Shares of Texas Roadhouse (TXRH) - Get Report are rising by 5.33% to $44.30 in after-hours trading on Monday, even though the Louisville, KY-based company posted weaker-than-expected results for the 2016 first quarter.
After the market close, the casual dining restaurant company reported earnings of 50 cents per diluted share, which fell short of analysts' estimates of 54 cents per share.
Revenue rose by 12% to $515.56 year-over-year, but was slightly below Wall Street's projections of $515.88 million.
Comparable restaurant sales climbed by 4.6% at company restaurants and by 3.1% at franchise restaurants during the period.
"We are pleased that our top-line momentum continued in the first quarter, driven by solid traffic growth. Strong comp sales, along with commodity deflation driven by lower beef costs helped us deliver near double digit earnings growth this quarter," CEO Kent Taylor said in a statement.
For 2016, Texas Roadhouse said it expects positive comparable restaurant sales growth and to open about 30 company restaurants.
About 1.46 million of the company's shares were traded today vs. its average volume of 644,680 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A+ on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations.
The team believes its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TXRH
