Jim Cramer’s Game Plan: 23 Stocks to Watch

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

Number of Hedge Fund Holders: 42

Cramer likes Texas Roadhouse, Inc. (NASDAQ:TXRH) and highlighted the public’s love for its economical meal prices.

“More clockwork love, Texas Roadhouse. Everybody seems to love this favorite restaurant chain. Got $11 dinner everybody’s raving about. Put it up there with Brinker and Wingstop as winner, winner, chicken dinner.”

Texas Roadhouse (NASDAQ:TXRH) is a well-established casual dining chain that operates both domestically and internationally, offering a diverse menu centered around high-quality steak and Southern-inspired dishes. The company also franchises restaurants under the names Texas Roadhouse, Bubba’s 33, and Jaggers. On October 15, Evercore ISI analyst David Palmer raised the price target on the stock to $200 from $195 and maintained an Outperform rating.

The adjustment came because of a broader trend observed in the restaurant industry, where effective marketing strategies have proven successful. The analyst noted that top-performing establishments continue to thrive, indicating a growing list of winners amid varying market conditions. Following adjustments to third-quarter sales forecasts, the firm is also revising earnings per share estimates and refining projections for same-store sales growth.

As Texas Roadhouse (NASDAQ:TXRH) looks toward future quarters, management remains optimistic about sustaining growth momentum. During the first four weeks of the third quarter, the company reported an 8.0% increase in comparable restaurant sales. It expects moderate commodity cost inflation of about 2% for the remainder of the year while maintaining an effective tax rate of around 14.5%. Capital expenditures for the year are projected to range between $360 million and $370 million.