BMO cuts Texas Roadhouse stock price target on comp miss
BMO Capital reduced its price target for Texas Roadhouse (NASDAQ:TXRH) to $190, citing a Q3 2026 earnings miss of $1.36 per share, below estimates. The miss was driven by weaker comparable sales, labor costs, and higher expenses. The company's gross profit margin is 16.25%, and it trades at a P/E ratio of 31.07. Texas Roadhouse reported 9.5% revenue growth and a 4.3% increase in same-store sales, with continued expansion and menu additions.
How this was made
The 30-second read
Why it matters
The price‑target cut reflects analyst concerns over slower comparable‑sales recovery and margin risk.
Market read
Analyst downgrade after earnings miss may trigger short‑term sell pressure in TXRH and influence peer restaurant stocks.
What to watch
Beef commodity price outlook and new store openings may support longer‑term earnings recovery.
Background
Texas Roadhouse reported Q3 2026 EPS of $1.36 versus $1.47 consensus, with modest revenue growth and margin improvement.
Ticker impact
BMO Capital lowered its price target on Texas Roadhouse to $190 after the company missed Q3 earnings estimates.
likely downward pressure as investors price in the lower target
The target reduction follows an earnings miss and margin pressure, suggesting the stock may trade below current levels.
Market effects
Restaurant sector may see heightened scrutiny on comparable sales trends.
U.S. consumer‑discretionary sentiment could be dampened.
Limited to U.S. equities; no broader macro effect.
Counterpoint
If the earnings miss is viewed as a temporary setback, the stock could rebound on its strong same‑store sales growth.
Key entities
- analystBMO Capital
Equity research firm that lowered the price target.
- companyTexas Roadhouse
Restaurant chain subject of the earnings miss and target cut.
