Texas Roadhouse Q3 EPS Misses by $0.03 on $1.44B Revenue; Two Directors Sell Shares
Texas Roadhouse reported Q3 EPS of $1.25 versus consensus $1.28, missing by $0.03 on revenue of $1.44B, up 12.8% year-over-year and surpassing the $1.43B estimate. Directors Hugh Carroll and Gregory Moore sold 1,000 and 1,400 shares at $167.27 and $170, reducing their insider ownership stakes.
1. Braun Stacey Associates Cuts Stake
In the third quarter filing with the SEC, Braun Stacey Associates Inc. reduced its holding in Texas Roadhouse by 8.5%, selling 11,632 shares and ending the period with 125,764 shares. The stake, representing 0.19% of outstanding stock, was valued at approximately $20.9 million at the time of the report. This move marks a notable shift for the investment firm, which had previously maintained a larger position in the casual-dining operator.
2. Broader Institutional Activity Signals Divergent Views
Several major funds made significant changes to their Texas Roadhouse exposure. Axiom Investors LLC DE amplified its position by 3,696.7%, acquiring an additional 2,116,552 shares to reach 2,173,807 shares valued at $362.2 million. Commonwealth of Pennsylvania Public School Employees Retirement System increased its stake by 2,515.2%, adding 401,098 shares to hold 417,045 shares worth $78.2 million. Roundview Capital LLC and Symphony Financial Ltd. Co. initiated new stakes valued at $1.48 million and $28.5 million respectively, while NorthRock Partners LLC entered with a $0.28 million position. Institutional ownership now stands at 94.82%.
3. Insider Disposals and Analyst Revisions Highlight Caution
Director Hugh J. Carroll sold 1,000 shares on December 4 for proceeds of $167,270, trimming his holding by 35.0% to 1,854 shares. The prior day, Director Gregory N. Moore disposed of 1,400 shares for $238,000, a 4.17% reduction to 32,150 shares. These insider sales coincide with mixed analyst commentary: UBS reiterated its buy view, Evercore ISI downgraded to in-line, Goldman Sachs shifted to neutral with a lower target, Barclays moved to equal weight, and Mizuho upgraded to strong-buy. The consensus rating remains Moderate Buy based on data from MarketBeat.
4. Recent Financial Performance and Dividend Update
For the quarter ended November 6, Texas Roadhouse reported earnings per share of $1.25, missing consensus estimates by $0.03, while revenue of $1.44 billion exceeded forecasts by $10 million and rose 12.8% year-over-year. Return on equity stood at 30.59% and net margin at 7.49%. The company declared a quarterly dividend of $0.68 per share, paid on December 30 to holders of record as of December 2, equating to an annualized payout of $2.72 and a dividend-payout ratio of 41.6%.