Why I Still Love Texas Roadhouse and Shake Shack Stock
I started adding to my position in Texas Roadhouse (NASDAQ: TXRH) and began buying Shake Shack (NYSE: SHAK) during the economic lockdown earlier this year, expecting that both restaurant chains would be just fine once the effects of the COVID-19 pandemic started to ease. So far, so good. Both stocks are back in positive territory for 2020 and have doubled from their late-March/early April lows. And now, after seeing both of their third-quarter updates, I'm still bullish on their stocks.
Image source: Getty Images.
Texas Roadhouse handily outperformed the restaurant industry average in the third quarter. According to analyst Black Box Intelligence, across the industry, average comparable-store sales fell by 8.1% and comparable-store traffic fell by 14.6% in the U.S. year over year. Texas Roadhouse may not have delivered growth on those metrics, but company-owned store comp sales fell just 6.3%, franchisee comp sales fell 9.6%, and traffic declined by only 9.3%.
Source Fool.com
