Texas Roadhouse Inc. Common Stock (TXRH) fair value

ACCE thesis

Texas Roadhouse runs company-owned casual dining restaurants under the Texas Roadhouse, Bubba's 33 and Jaggers brands, built around hand-cut steaks, yeast rolls and a made-from-scratch kitchen, with franchised units sitting alongside the company stores. The moat is operational rather than structural: a long-running culture of hourly-staff ownership and tightly run kitchens has kept the chain's traffic resilient through cycles that hit more fragile casual-dining peers. Revenue is growing 11.1% and return on equity is 27.7%, but operating margin of 8.5% is thin for a restaurant business and leaves little cushion if beef costs or labor inflation spike. At 21.0x forward earnings against a trailing 27.4x, the market is pricing in a meaningful earnings recovery, so the question for a deeper look is whether unit growth and pricing can hold that trajectory. The composite score of 51/100 and the absence of index membership suggest the name sits outside most screens, which may make it worth a closer look on its own merits.