Christmas is Coming Early Via Dividend Payout for TXRH Shareholders

Texas Roadhouse is set to pay out dividends on Dec. 23

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Texas Roadhouse Inc (NASDAQ:TXRH) is a restaurant company that operates in the casual dining industry. TXRH and its franchisees operate 654 restaurants in 49 states and 10 foreign countries. Last month, Texas Roadhouse announced that its board of directors had authorized the payment of a cash dividend of $0.40 per share of common stock. The payment will be distributed on Dec. 23 to shareholders of record at the close of business on Dec. 8. Moreover, TXRH offers a forward dividend of $1.60 with a dividend yield of 1.98%.

Texas Roadhouse stock has been in selloff mode since failing once again at the $96 region, which has kept a lid on shares since September. The equity recently broke down below the formerly supportive 320-day moving average, which now looks to be acting as additional pressure on the charts. Year-to-date, TXRH still sports a muted 5% lead. 

txrh dec 3

Fundamentally speaking, Texas Roadhouse has demonstrated a strong recovery from pandemic-related shutdowns after reporting a 13% revenue decline and an 82% decrease in net income for fiscal 2020. TXRH has since grown its trailing 12-month revenues and net income by 34% and 578%, respectively. In addition, the restaurant company had maintained consistent top- and bottom-line growth for multiple years prior to the pandemic, generating a 24% increase in revenues and a 33% increase in net income between fiscal 2017 and fiscal 2019.

However, Texas Roadhouse stock trades at a relatively expensive price-earnings ratio of 27.69 and TXRH has a somewhat pricey forward price-earnings ratio of 21.14, given the industry the company operates in and its limited growth potential. Overall, potential buyers may want to hold off for a better valuation, but Texas Roadhouse stock's consistency makes TXRH a decent option for long-term investors.


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