Hands down, the most underrated chain restaurant in America is Texas Roadhouse. The standard of Texas Roadhouse’s food is probably the highest of any American chain restaurant. Excluding children’s menu items like Kraft Macaroni & Cheese, applesauce, and sausages, everything on the Texas Roadhouse menu is made of scratch using an original recipe, including salads and dressings. Every one of their famous steaks are hand-cut and never frozen, with the exception of their T-bone steak, which is prepared off-site and vacuum-sealed.
The service can be just as legendary. Steak-hungry customers ought to hand pick their very own steak upon entering the restaurant, but there’s never too much pressure on customers to enjoy more then they’re comfortable with. As another evidence of how care-free each establishment is, every table offers a free bucket of shelled peanuts, with patrons motivated to toss the empty shells on the floor.
Even outside the restaurant, How much does burgers cost at Texas Roadhouse employees participate in a variety intercompany competitions such as the bartender’s “Real Bar” competition, and an annual “Meat Cutters” competition, that allows for a number of restaurant workers to demonstrate their skill. All the caliber of Texas Roadhouse, inspite of the chain having over 450 locations spread across 49 U.S. states and several foreign countries, is extremely consistent, making Texas Roadhouse by far the most underrated American chain restaurant currently in operation.
Initially when i first advocated looking into restaurant stocks last November, the shares of most casual dining companies lay mired in negativity. Amid falling grocery prices, oversupply, falling foot traffic, and changing consumer preferences, chain restaurants became relatively undervalued.
However, Texas Roadhouse (TXRH) never suffered throughout the “restaurant recession.” Indeed, the company has consistently beaten earnings even in a tough environment; shares are up 180 percent over the last 5 years, and 30 percent year up to now.
Here I examine what makes Texas Roadhouse appealing to customers along with investors. The company has trumped a tough operating environment as a result of almost flawless execution, and management has become careful not to overextend the company. However, investors continue to be paying a big premium for this performance, even though projected future earnings are factored into the valuation.
What exactly is the secret sauce that continues bringing diners back and enriching Texas Roadhouse shareholders? A part of this is because Texas Roadhouse provides diners with all the “experience” that a lot of brick-and-mortar retail and restaurant establishments struggle to provide. The chain is popular for its lively atmosphere and quality food with a bargain price. In lots of ways, Texas Roadhouse was in front of its time. The steakhouse is well-best for a period where consumers crave freshness and authenticity, preparing its food on your own on location and allowing customers handy pick steaks from the counter. Food consultant Darren Tristano says it best.
Texas Roadhouse’s first-quarter performance surprised financial pundits. There was no such effect Monday as the brand’s second-quarter financials lined up with Wall Street expectations. That fact, however, was far qyucjp a poor one.
Total revenue climbed 11 percent to $566.3 million within the second quarter. Net income grew 12 percent to $37.6 million (earnings per share of 53 cents), and comparable same-store sales accelerated 4 percent at company-owned restaurants and 3.6 percent at domestic franchise stores. Like the first-quarter review, Scott Colosi, Texas Roadhouse’s president and chief financial officer, broke on the leads to straightforward terms.