New York, Feb 11, 2026, 14:42 EST — Regular session
- Shares recovered roughly 0.8% Wednesday, clawing back some ground lost after sliding 2.7% the day before.
- Truist downgraded Texas Roadhouse to hold, cautioning that beef inflation might stick around through 2027.
- Attention shifts to the Feb. 19 earnings report, where investors want updates on margins, pricing, and the cost outlook.
Texas Roadhouse crept up 0.8% to $184.13 on Wednesday afternoon, regaining a slice of the losses it took after a broker downgrade sent the shares sliding the day before.
The uptick carries weight, given that Texas Roadhouse is set to post its quarterly numbers next week. Investors are zeroed in on any tweaks to the company’s food-cost guidance that might sway short-term profit targets. The steakhouse operator will announce fourth-quarter earnings on Feb. 19, after the closing bell, and host a conference call at 5 p.m. ET. 1
Beef’s back in focus. Traders are eyeing whether commodity relief will actually show up in restaurant margins — that all-important store-level profitability metric — or if stubborn costs refuse to budge.
This week, Truist Securities threw cold water on the “cost relief” thesis. Analysts cut Texas Roadhouse to hold from buy, trimming the price target to $188 from $206. They cited beef price inflation that could stick around through 2027, warning it may squeeze margins and put a ceiling on the stock’s upside. 2
Truist’s take: the stock could have a tough time securing fresh multiple expansion—investors paying up with higher price-to-earnings—if input costs remain high, no matter if sales stay solid.
Shares of Texas Roadhouse ended Tuesday off 2.66%, settling at $182.68. 3
Restaurant stocks were showing gains Wednesday afternoon. Darden Restaurants added roughly 1.0%, while Brinker International climbed about 1.7%. Bloomin’ Brands ticked up near 0.6%.
Options traders zeroed in on the upcoming report, with fresh signals emerging in the data. Zacks, in a piece published on Nasdaq, highlighted a noticeable jump in implied volatility—Wall Street’s shorthand for bracing volatility—in near-term Texas Roadhouse options. 4
Truist called it a valuation issue, noting shares sit just 9% off record highs. The firm told The Fly it “would look for a pullback to get more aggressive.” 5
This trade has room to flip. Beef prices might ease sooner than expected, or the company could pass on higher prices without taking a hit on foot traffic—making the downgrade seem premature. On the other hand, if diners resist bigger checks, margins might still come under pressure.
Texas Roadhouse runs restaurants under its namesake brand and also owns Bubba’s 33 and Jaggers. 6
Feb. 19 is circled on calendars. Investors are keyed in on same-store sales—tracking growth at restaurants open at least a year. They’re also watching for any word on commodity inflation and updated menu pricing strategy, details that might set the tone for spring forecasts.
