Love Growing Dividends? Help Yourself to This Top Restaurant Stock.
When it comes to dividend growth stocks, perhaps a small-ish restaurant chain like Texas Roadhouse (NASDAQ: TXRH) doesn't immediately come to mind. So let me attempt to convince you why it should. Though it briefly suspended payments during initial pandemic lockdowns in 2020, dividends paid at Texas Roadhouse have increased 275% over the last decade.
Steady pay raises like this can really add up for shareholders over the long term, and it appears Texas Roadhouse is in good shape to continue its steady growth after a solid finish in 2022. Here's why I think this restaurant stock is a top buy for dividend investors.
The hot inflation in basic goods and wages over the last year-plus had a detrimental effect on many businesses, Texas Roadhouse included. In the first half of 2022, revenue increased 18% year over year, helped by rebounds in-store traffic compared to 2021, as well as menu item price hikes to partially offset rising costs. But inflation still took a big bite out of the bottom line. As a result, earnings per share (EPS) increased only 8% year over year.
Source Fool.com
