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Stock impact report

Rising Beef Costs Test Texas Roadhouse Margins And Valuation Support [Yahoo! Finance]

Texas Roadhouse, Inc. (TXRH) 
Last texas roadhouse, inc. earnings: 2/20 04:03 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Rising beef prices are putting pressure on Texas Roadhouse's cost base as cattle inventories sit at historic lows. Persistent demand for beef means input costs may stay elevated, creating a near term squeeze on profit margins. Management may not be able to fully pass these higher costs on to diners, which could affect earnings quality and pricing decisions. For investors watching Texas Roadhouse, ticker NasdaqGS:TXRH, the timing of this cost pressure comes with the shares trading around $179.86. The stock is up 5.0% over the past month and 121.1% over five years, which suggests expectations around execution and profitability are already important to the story. When a company with that kind of long term share price performance faces higher input costs, the quality and stability of earnings can quickly move into focus. Looking ahead, the key questions are how much of the beef cost increase Texas Roadhouse can absorb and how much it can pass through without hurting guest traffic Show less Read more
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