NEW YORK (TheStreet) -- Texas Roadhouse (TXRH) shares are up 3.71% to $34.92 in trading on Tuesday after the casual dining company reported its first quarter financial results after the closing bell yesterday.
The company reported first quarter net income of $32.3 million, or 46 cents per share on an adjusted basis, topping analysts estimates of 44 cents per share by 2 cents. Revenue for the period increased 16% to $460.2 million, missing analysts' $466.3 million expectations.
"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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: