5 Defensive Restaurant Stocks To Buy Amid Recession Fears

4. Texas Roadhouse, Inc. (NASDAQ:TXRH)

Number Of Hedge Fund Holders: 35

Texas Roadhouse, Inc. (NASDAQ:TXRH) is an American steakhouse that specializes in steaks in a Texan and Southwestern cuisine style. Cited as one of Jeffrey Bernstein’s top picks in casual dining, the company owns and operates approximately 548 restaurants and franchises an additional 99 restaurants in 49 states and ten foreign countries.

On June 27, BofA analysts Sara Senatore and Katherine Griffin initiated coverage of Texas Roadhouse, Inc. (NASDAQ:TXRH) with a Buy rating and a $96 price target on its shares. According to the analysts, Texas Roadhouse, Inc. (NASDAQ:TXRH) ranks among the more attractive names in the restaurant space, especially amidst a market downturn toward a recession that shifts consumer behavior. Additionally, strong operating margins and a sturdy balance sheet also makes the company a more solid pick compared to its close peers.

In Q1 2022, 35 hedge funds tracked by Insider Monkey reported owning stakes in Texas Roadhouse, Inc. (NASDAQ:TXRH), down from 35 in the previous quarter. These stakes hold a consolidated value of roughly $796.2 million. Gabriel Plotkin’s Melvin Capital Management is the biggest shareholder of Texas Roadhouse, Inc. (NASDAQ:TXRH), with a stake worth approximately $150 million.