Jim Cramer on Texas Roadhouse: “They Read the Room Correctly”

Texas Roadhouse, Inc. (NASDAQ:TXRH) is one of the stocks Jim Cramer shed light on. Cramer showed bullish sentiment for the company in the longer term, as he remarked:

“Recently, for instance, Texas Roadhouse gave you a +5.8% same-store sales number, very strong revenues too, but they missed the earnings numbers, and that’s because they chose not to take price even as the cost of beef skyrocketed. The decision to keep their dinners at $11 was costly, but Texas Roadhouse sensed it was the wrong time to raise price, and they were right. The stock dropped 12 points. We sold some of the stock for the Charitable Trust in the spring, very high, before the earnings report, and we bought some of those shares back on Friday after the price collapsed because I think they did the right thing. We will buy the rest if the stock trades lower. They read the room correctly, and I think they’ll benefit from that longer term.”

Jim Cramer on Texas Roadhouse: "They Read the Room Correctly"

A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels

Texas Roadhouse, Inc. (NASDAQ:TXRH) operates and franchises casual dining restaurants under brands including Texas Roadhouse, Bubba’s 33, and Jaggers. The company provides a variety of food and beverages.

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Disclosure: None. This article is originally published at Insider Monkey.