Texas Roadhouse AI Price Prediction

Valuation and earnings metrics point to a healthy, profitable business that the market is willing to pay a premium for. A PE of 28.91 on EPS of 6.54 implies solid earnings power and investor confidence in continued growth, typical of a high‑quality consumer brand rather than a deep value play.

• With EPS at 6.54 and the stock at $189.09, the PE of 28.91 reflects strong profitability and an expectation of sustained or growing earnings, not a distressed or low‑growth profile.
• A near-29x multiple is elevated versus many casual dining peers, suggesting the market is pricing in above‑average same‑store sales growth, operational efficiency, and brand strength.
• The combination of robust earnings and a premium multiple is consistent with a company executing well fundamentally, even if it leaves less margin of safety for valuation-driven investors.

Price action and technicals are constructive: the stock is in an uptrend, trading above its 200‑day moving average, with a neutral RSI that does not yet signal overbought conditions. The recent 11.4% one‑month gain indicates strong momentum, but not yet at extremes that typically precede sharp mean reversion.

• At $189.09 versus a 200‑day moving average of $175.07, the stock is trading meaningfully above long‑term trend, confirming a positive, established uptrend.
• The RSI at 54.79 is in neutral territory (neither overbought nor oversold), suggesting the recent 11.4% monthly move has been strong but not excessively stretched from a momentum standpoint.
• Short‑term price strength combined with a positive long‑term trend and non‑extreme RSI typically supports a bullish technical outlook, though the elevated valuation implies vulnerability if fundamentals disappoint.

Alternative data points to healthy and growing customer engagement, especially via digital channels, which is supportive of continued demand and brand relevance. Web traffic, app downloads, and modestly growing social followings all align with a consumer brand that is sustaining or expanding its reach.

• Estimated web traffic of 4.7M visitors per month is substantial for a restaurant chain and, combined with strong brand awareness, typically correlates with healthy order flow and in‑store traffic; no deterioration is implied in the data provided.
• Mobile app downloads at 164,000 per day, up 7.2% month over month, are a particularly strong signal of rising digital engagement, loyalty program usage, and ordering convenience, all of which can support higher frequency and ticket size.
• Job openings at 4,000 with 0.0% month‑over‑month change suggest stable expansion or staffing needs rather than contraction, while modest growth across Instagram, TikTok, Facebook, and LinkedIn followers indicates steady, if not explosive, brand engagement on social platforms.

Overall, the combination of strong earnings power, a premium but not extreme valuation, constructive technicals, and positive alternative data signals supports a bullish view on Texas Roadhouse. The main risk is that the elevated multiple leaves less room for error if growth slows, but current indicators do not yet point to a deterioration in fundamentals or demand.

• Fundamentals and alternative data both suggest a solid, growing business with strong brand engagement and healthy profitability, justifying a bullish stance despite a higher valuation multiple.
• Technicals confirm an established uptrend without clear signs of exhaustion, implying that, barring negative fundamental surprises, the stock’s risk‑reward skew remains favorable for growth‑oriented investors.