Texas Roadhouse (TXRH) Is Loyal To Their Users, Says Jim Cramer

We recently published 12 Fresh Stocks Jim Cramer Discussed Along With His Latest Thoughts On Quantum Computing. Texas Roadhouse, Inc. (NASDAQ:TXRH) is one of the stocks Jim Cramer recently discussed.

Texas Roadhouse, Inc. (NASDAQ:TXRH) is a casual restaurant dining chain. Cramer discussed the firm in the context of the ongoing beef crisis in the US. Texas Roadhouse, Inc. (NASDAQ:TXRH) factored into the discussion after the CNBC TV host commented on Tyson Foods’ latest earnings results, which saw management outline the impact of cattle herds in the US being at their lowest in 75 years. Cramer commented on Texas Roadhouse, Inc. (NASDAQ:TXRH) prices and outlined that investors were happy after the firm insisted that it continued to experience strong foot traffic despite the beef troubles:

“My charitable trust owns it, it is doing so well but what can I say, they decided to keep the price point because they are loyal to their users. And the stock was actually up, four on Friday because they did indicate, listen people are still coming.”

In a Mad Money appearance on August 26th, Cramer discussed Texas Roadhouse, Inc. (NASDAQ:TXRH) shares and recommended that viewers buy them:

“In America, we have the smallest herd of cattle since the 1950s. That’s shocking. Is it any wonder why the stock of Texas Roadhouse, a huge meat buyer for its $11 steak dinner, didn’t make its quarter? It’s because of this… We haven’t seen anything close to this since cattle prices peaked in 2014. At the time, the fundamental narrative was as overwhelmingly positive as it is today, but… that didn’t prevent the cattle market from giving back the entire rally over the next two years.

Garner’s (Carley Garner, a seasoned market technician, co-founder of DeCarly Trading, and author of Higher Probability Commodity Trading) betting that scenario will repeat itself, which means eventually we could be looking at $1.25 cattle. I know that’s hard to believe, but if history’s any guide, Garner’s on the right track, and if she’s on the right track, I gotta tell you, after a weak quarter that Texas Roadhouse I believe is having right now, that’s the name to be in. That’s why our Charitable Trust continues to buy it.”

While we acknowledge the risk and potential of TXRH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TXRH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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