Jim Cramer Discussed These 11 Restaurants and Retail Stocks

6. Texas Roadhouse, Inc. (NASDAQ:TXRH)

Number of Hedge Fund Holders: 45

Cramer praised Texas Roadhouse, Inc.’s (NASDAQ:TXRH) low prices and overwhelmingly good food.

“At the same time, there’s the other consumer who only seeks absolute bargains. The under $11 meal at Chili’s owned by Brinker and at Texas Roadhouse, the same deal. Incredibly attractive… Texas Roadhouse overwhelms you with fabulous food at a price that seems like they forgot to put one of us on the bill.”

Texas Roadhouse (NASDAQ:TXRH) is a well-known casual dining restaurant chain with locations across the U.S. and internationally. In the third quarter, the company raised menu prices by less than 1% for the fourth quarter, confident that the increase would maintain traffic and support its value proposition. It also anticipates a steady to positive outlook for commodity and labor inflation.

The company confirmed that its 3.1% pricing run-rate in the menu would remain through the first quarter of 2025. Michael Bailen, Head of Investor Relations, stated, “… and then we would have 2.2% rolling-off and we will go through our normal conversations to see what we may or may not do come the beginning of the second quarter.”

For 2025, Texas Roadhouse (NASDAQ:TXRH) management plans to open around 30 company-owned restaurants across all brands. Additionally, a tentative agreement is in place to acquire 13 Texas Roadhouse locations from a major domestic franchisee. International Texas Roadhouse franchisees expect seven openings, while domestic Jaggers franchisees are targeting three new locations.