Texas RoadhouseHasbro

Texas Roadhouse vs Hasbro

Texas Roadhouse and Hasbro are presented side by side to help readers understand how their business models, financial performance, and market context differ. This page compares strategy, revenue drive...

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Restaurant Buyouts (Apollo Interest) Drive Focus

Restaurant Buyouts (Apollo Interest) Drive Focus

Apollo Global's renewed bid for Papa John's highlights a growing trend of private equity interest in the restaurant industry. This theme focuses on other publicly traded restaurant chains that could be the next attractive takeover targets.

Published: October 15, 2025

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Investment Analysis

Pros

  • Texas Roadhouse has demonstrated significant revenue growth of 16.01% in 2024, reaching $5.37 billion, alongside a 42.22% increase in earnings to $433.59 million.
  • The company maintains a disciplined expansion strategy, planning to open approximately 30 new stores annually to drive growth.
  • Analysts hold a generally positive outlook with a consensus price target indicating about 12% upside potential and a moderate buy rating.

Considerations

  • Profit margins are under pressure due to rising beef costs and wage inflation, challenging the companyโ€™s ability to maintain restaurant margins around 17-18%.
  • The stock trades at a relatively high valuation with a price-to-earnings ratio around 27, which is elevated compared to sector averages and may limit upside.
  • Q3 2025 results showed a slight EPS miss and only moderate revenue growth, leading to a recent stock price decline and uncertainty over near-term momentum.

Pros

  • Hasbro, as a leading global toy and entertainment company, benefits from strong brand recognition and diversified product lines across toys, games, and media.
  • The company has been actively expanding its digital and entertainment content portfolio, enhancing long-term growth prospects beyond traditional toy sales.
  • Hasbro's recent financials have shown stabilisation with operational improvements and cost controls supporting improved profitability.

Considerations

  • Hasbro faces significant cyclicality and consumer discretionary risk, with performance sensitive to economic downturns and shifting consumer preferences.
  • Competitive pressures from both traditional toy makers and new digital entertainment entrants create ongoing challenges to market share and margins.
  • The companyโ€™s exposure to supply chain disruptions and inflationary pressures on input costs may constrain earnings growth in the near term.

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