Texas Roadhouse Shares Get Slaughtered On Lower Than Expected Earnings
Ticker.tv News | Feb 22, 2017 08:36AM ET
Texas Roadhouse Inc (NASDAQ:TXRH)
Texas Roadhouse, Inc. (TXRH), a global casual dining steakhouse restaurant company yesterday reported their fiscal fourth quarter and full year 2016 financial results. Texas Roadhouse reported a fourth quarter profit of $20.7 million. Texas Roadhouse reported fourth quarter earnings of $0.29 per share which fell short of analyst expectations of $0.37 per share. Texas Roadhouse reported fourth quarter revenues of $484.7 million which fell short of analyst expectations of $496.6 million.
h3 Texas Roadhouse, Inc.CEO’s Comments/h3h3 TXRH Technical Analysis/h3
CEO Kent Taylor put the results in the context of a solid 2016 performance. “We are pleased to deliver another strong year of results,” Taylor said, which included earnings growth “driven by double-digit revenue growth and restaurant margin expansion.” The CEO also pointed to its 28-quarter streak of consecutive rising comparable restaurant sales, which indeed is better than most of its competitors. “The strength of our brand continues to be our people and our operational focus on delivering legendary food and legendary service.” Motley Fool
TXRH opened trading yesterday at $48.33 which was up from the previous day’s trading close of $48.24. Shares closed trading yesterday at $47.79 and spiked down after market to $42.90, equivalent to a 10% decrease from the closing price. Taking a look at the daily chart we can see that the last time TXRH traded below these levels we have to go all the way back to November 9th, 2016 when it traded at $42.12.
Taking a closer look at the daily chart we can see that before the spike down TXRH had been in an overall upward trend dating back to October 10th, 2016 when it traded at $37.89. TXRH has a float of 64.47 million shares and traded 2.04 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see TXRH open trading on Wednesday below $44.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
h3 Company Profile/h3Texas Roadhouse, Inc., incorporated on May 5, 2004, is a restaurant company, which operates in the casual dining segment. The Company offers an assortment of seasoned and aged steaks hand-cut daily on the premises and cooked to order over open grills. In addition to steaks, the Company also offers its guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork and vegetable plates, and an assortment of hamburgers, salads and sandwiches. The Company’s entrees include over two made-from-scratch side items and it offers all its guests a free unlimited supply of roasted in-shell peanuts and fresh baked yeast rolls.
Get The News You Want
The Company owns approximately 400 company restaurants and over 80 franchise restaurants in approximately 50 states and over four foreign countries. Of the over 400 restaurants the Company operates approximately 390 as Texas Roadhouse and operated over seven as Bubba’s 33 restaurants. In addition, the Company operates over two restaurants outside of the casual dining segment. Bubba’s 33 is a family-friendly sports restaurant, which offers an assortment of wings, sandwiches, pizza and burgers, including bacon grind patty. In addition, it also offers its guests a selection of chicken, beef, fish and seafood. Bubba’s 33 also offers an extensive selection of draft beer.”
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.