Texas Roadhouse (TXRH) Can Touch $200, Says Jim Cramer

Core Viewpoint - Texas Roadhouse, Inc. (NASDAQ:TXRH) is viewed as a potential investment opportunity, particularly after a recent share price dip, which is seen as a good entry point despite challenges related to high beef costs [2][3]. Company Overview - Texas Roadhouse, Inc. is a casual dining restaurant firm based in Kentucky [2]. - The company has maintained its steak prices at $11, despite fluctuations in the beef market, which has been praised by analysts [3]. Financial Performance - In the third quarter, Texas Roadhouse reported a 7.9% increase in commodity inflation, leading to a 6.1% increase in sales [2]. - The company's restaurant-level profit margin was impacted by a 168 basis point decline due to rising costs [2]. Analyst Insights - Wells Fargo upgraded Texas Roadhouse shares to Overweight in December, setting a price target of $195, indicating confidence in the company's future performance [2]. - Analysts believe that Texas Roadhouse could improve its performance by 2026 and is gaining market share [2]. Market Commentary - Jim Cramer expressed optimism about Texas Roadhouse's potential to reach $200 per share, contingent on a decrease in beef prices [3]. - The company is noted for its strategy of not raising prices during challenging market conditions, which may benefit consumer retention [3].