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Texas Roadhouse's Traffic Growth 'Durable,' RBC Says

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Texas Roadhouse's (TXRH) traffic growth is "durable" and has shown no signs of impact from the conflict in the Middle East, RBC Capital Markets analysts said in a Friday note.

Analysts said that the company may benefit from more favorable beef prices, driving an upside to investor margin expectations.

RBC said that the company's traffic growth has the potential for further upside, driven by market share gains from retail and steakhouse competitors.

The analysts said that their key takeaways from a meeting with Texas Roadhouse were that the company's "solid" labor productivity gains will likely continue, and that the commodity guidance is not "conservative."

RBC upgraded the stock's rating to outperform from sector perform, and raised its price target to $210 from $180.

Price: $179.43, Change: $+2.37, Percent Change: +1.34%

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