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Executive Summary:
Texas Roadhouse has officially surpassed Olive Garden to become the No. 1 casual dining chain in the U.S., according to Technomic data reported by Restaurant Business. The steakhouse chain’s rise is attributed to strong Q4 2024 results, with comparable sales up 7.7% at company-owned restaurants and systemwide sales growing 14.7% for the year. The brand also expanded its footprint with 26 new locations, marking a 4.1% increase.
In contrast, many top casual dining chains, including Applebee’s, Outback Steakhouse, Red Robin, and Red Lobster, saw year-over-year declines, highlighting Texas Roadhouse’s standout performance in an otherwise sluggish sector.
Market analysts remain optimistic. CNBC’s Jim Cramer recently praised Texas Roadhouse as a “steady operator with a lot of room to grow,” citing its affordability and resilience in the face of market pressures. The chain’s value-oriented menu—such as an 8-ounce steak with two sides for $9.99—continues to draw in cost-conscious consumers.
Investment sentiment remains positive, with TipRanks analysts rating TXRH as a “moderate buy,” with no “sell” ratings. The question now is whether Texas Roadhouse can maintain this momentum in a challenging economic and competitive environment.
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