We are buying 50 shares of Texas Roadhouse at roughly $176.37. Following Friday’s trade, Jim Cramer’s Charitable Trust will own 250 shares of TXRH, increasing its weighting to about 1.2% from about 1%. The stock market took a spill at 10 a.m. ET after the University of Michigan consumer sentiment index fell to 67.8% in February, well below estimates of 71.8 and 71.1 in January. To make matters worse, it showed consumers were increasingly concerned about inflation, with 1-year inflation expectations jumping to 4.3% from 3.3% in January. After the data was released, consumer-related stocks fell on concerns about a slowdown in spending despite the January nonfarm payroll report earlier telling a good story of still solid job growth (when including the positive revisions in December) and strong wage growth (good for consumers to have more money but not so good for interest rate cut expectations). With stocks lower Friday, we are dipping into our large cash position to add to our newest name: Texas Roadhouse. We called up the restaurant company from our Bullpen watch list earlier this week, pointing out how it is one of the best-performing casual dining names out there. Texas Roadhouse offers its customers a good deal, serving quality food at low prices. Comparable sales growth here is constantly in the high single digits, driven by a mix of traffic growth (meaning more people in the restaurant) and an increase in the average check amounts. We also like how this is a domestic-leaning company with very little exposure to international markets or headwinds from a strengthening dollar. Tariff headwinds should be minimal here. But the one commodity to be on the lookout for is beef prices since they are a huge input for this steak-focused chain. The stock had a great 2024 but has pulled back almost 15% from its November highs. That created an entry point for us to slowly build this position. TXRH 1Y mountain Texas Roadhouse 1 year (Jim Cramer’s Charitable Trust is long TXRH. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
