BMO Capital Raises PT on Texas Roadhouse (TXRH) from $155 to $170, Reiterates “Market Perform” Rating

Texas Roadhouse, Inc. (NASDAQ:TXRH) is one of the best restaurant stocks to buy now.

BMO Capital Raises PT on Texas Roadhouse (TXRH) from $155 to $170, Reiterates “Market Perform” Rating

The latest analyst update on Texas Roadhouse, Inc. (NASDAQ:TXRH) was issued on January 5, 2026, by BMO Capital. TheFly reported that the firm raised its price target on the stock from $155 to $170, while reiterating a “Market Perform” rating. Despite the raised target, the firm’s commentary was bearish regarding the sector. It expects the restaurant sector to continue facing challenges in 2026 amid ongoing consumer spending pressure, margin constraints, store closure risk, and limited scope for multiple expansion. The recently closed year already saw widespread stock declines and double-digit reductions in earnings outlooks, with the firm projecting these headwinds to persist or even intensify into 2026.

Meanwhile, Texas Roadhouse, Inc. (NASDAQ:TXRH) has been facing share price pressure, with its share price declining roughly 6.35% since early August and over 10% in the past six months. However, in its December 17 update, when Wells Fargo upgraded the stock to “Overweight,” the firm argued that the pullback has created an attractive entry point despite short-term cost pressures. Rising beef costs have weighed on 2025 earnings expectations. Still, the firm sees these pressures as cyclical rather than structural and focuses on positives: the company’s strong value proposition, mid-single-digit traffic growth, and ongoing market share gains. Despite soft expectations for the fourth quarter, the firm expects share price improvement in early 2026 due to easier comparisons, consumer stimulus, and a projected peak in beef costs around Q2 2026. In the firm’s bull case scenario, the price target is set at $220, assuming costs ease faster and traffic remains resilient.

Texas Roadhouse, Inc. (NASDAQ:TXRH), a full-service casual-dining restaurant chain, offers assorted seasoned and aged steaks.

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