Texas Roadhouse (NASDAQ:TXRH), the national chain of casual dining restaurants, has had a strong run this year (stock is up 50% YTD). This run, though impressive, has pushed the stock higher than reasonable expectations can support. Consensus estimates, considering the recent slowdown in consumer spending trends and the fact that TXRH is one of the most EPS sensitive restaurant chains to changes in comps and costs, have set too high a bar for revenue and margins going forward. Furthermore, the company has been repurchasing shares since 2008, but stopped in the latest quarter due to the stock's price. This is a clear signal by management as to their opinion on the valuation of the stock. Furthermore, sales from...
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