Texas Roadhouse Inc
TXRH: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| kMy | LOCK|>XK< | LOCK|XB&t&F%j |
Traffic Aids Texas Roadhouse in 4Q, but Food Cost Inflation Remains a Headwind
While Texas Roadhouse TXRH is admittedly facing strong pressure from elevated food costs, particularly for beef, produce, and dairy, the company still posted solid fourth-quarter and yearly results. Given the firm's resilience in withstanding such high food-cost inflation and solid 2012 guidance, we will be placing our fair value estimate under review as we reassess our outlook for Texas Roadhouse.
