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.
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