Jefferies Upgrades Texas Roadhouse to Buy
Analyst Andy Barish of Jefferies upgraded Texas Roadhouse Inc. (NASDAQ:TXRH) from Hold to Buy on 14 October 2026, raising the price target to $190 from $186. The upgrade was prompted by what Jefferies described as an "overdone pullback" that created an attractive entry point for the high‑quality casual‑dining operator.
Following the rating change, Texas Roadhouse shares ticked up approximately 2% in the pre‑market session, indicating investor enthusiasm despite broader macro‑economic choppiness. Jefferies highlighted the chain’s solid operational execution, steady foot‑traffic trends, and its ability to maintain industry‑leading sales and earnings growth relative to peers.
The brokerage noted that category demand remains supportive as consumers continue to prioritize experiential dining occasions that are difficult to replicate at home. It also pointed to potential relief in beef input costs, citing healthy cattle inventory levels, the resumption of Mexican cattle imports, and favorable year‑over‑year comparisons that could moderate protein inflation from recent highs.
Looking ahead, Jefferies expects Texas Roadhouse’s revenue and EBITDA growth to sit at the high end of the casual‑dining group in 2027, driven by mid‑single‑digit unit growth and expanding restaurant‑level margins. Emerging concepts such as Bubba’s 33 are expected to contribute more meaningfully to top‑line expansion over the longer term.
The analyst further observed that the stock trades at an EV/EBITDA multiple well below its historical premium relative to peers, concluding that the recent sell‑off appears overdone and that core fundamentals and eventual cost stabilization should support a valuation re‑rate toward historical norms.