NEW YORK (TheStreet) -- Shares of Texas Roadhouse (TXRH) were gaining 5.3% to $35.41 after-hours Monday after the casual restaurant operator beat analysts' estimates for earnings in the first quarter.
Texas Roadhouse reported earnings of 46 cents a share for the first quarter, above analysts' estimates of 44 cents a share. Revenue grew 15.9% year over year to $460.23 million for the quarter, below analysts' estimates of $465.37 million.
Comparable restaurant sales grew 8.9% at company restaurants and 8% at franchise restaurants in the first quarter. Comparable store sales grew 8.4% in the first four weeks of the second quarter.
"We are off to a strong start for the year with another quarter of solid revenue growth driven by increasing guest counts and new restaurant development," CEO Kent Taylor said. "We credit our success to our value proposition with consumers and our ability to execute at the restaurant level even in the face of continued commodity inflation."
TheStreet Ratings team rates TEXAS ROADHOUSE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEXAS ROADHOUSE INC (TXRH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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 reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: TXRH Ratings Report