Tuesday’s Top Upgrades (and Downgrades): Cracker Barrel Old Country Store, Inc. (CBRL), Texas Roadhouse Inc (TXRH), Aurizon Mines Ltd. Aurizon Mines Ltd. (USA) (AZK)

Make no mistake: Miller still likes Texas Roadhouse Inc (NASDAQ:TXRH) quite a lot, praising the company for producing above-peer-group same-store sales while also expanding its profit margin. It’s also got a faster growth rate.

On the other hand, though, at 20 times trailing earnings, Texas Roadhouse Inc (NASDAQ:TXRH) looks even more expensive than Cracker Barrel. Its dividend is slightly smaller, too — 2.5% versus 2.6%. And most important of all, Texas Roadhouse is currently generating less free cash flow ($61 million) than it reports as net income under GAAP ($71 million). That’s as contrasted with Cracker Barrel, which actually produces slightly more cash profit than it’s allowed to claim as net income under GAAP — and it suggests that Texas Roadhouse isn’t quite as good a bargain as it looks.

Long story short, that fact alone is reason enough for caution, and justifies the downgrade to hold.

Aurizon Mines Ltd. (NYSEMKT:AZK) strikes it rich
And finally, we end by switching gears from food to minerals, as Global Hunter Securities removes its “accumulate” rating from shares of Aurizon Mines Ltd. (USA) (NYSEAMEX:AZK). Aurizon you see, announced last night that it’s selling itself to Hecla Mining (NYSE:HL) , having been offered a better purchase price than the one it received, unsolicited, from Alamos Gold a week ago.

Depending on how you look at it, Hecla’s offer of CA$4.75 a share is either CA$0.10  higher than Alamos’ January bid of CA$4.65, or $0.10 worse (at the fluctuating U.S. dollar exchange rate — Hecla’s bid works out to $4.63 versus the $4.73 that Alamos offered six weeks ago).

Whichever way you look at it, though, this deal looks as good as done. Aurizon rejected Alamos’ offer, but its board is recommending that shareholders accept Hecla’s bid. Hence, no reason to buy this stock anymore. Its run is done.

Fool contributor Rich Smith owns shares of Biglari Holdings. The Motley Fool recommends Cracker Barrel Old Country Store (NASDAQ:CBRL).

The article Tuesday’s Top Upgrades (and Downgrades) originally appeared on Fool.com and is written by By Rich Smith.

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