Cramer's Morning Take: Texas Roadhouse 2/21/25

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Jim Cramer (1:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. But I do want to point out that the profound decline transports, banks, some restaurants we're going to get to, tells me that there is something awry. I don't know whether it's the weather or not. It's hard. I'm going to rely on Texas Roadhouse tonight to figure it out.

Jeff Marks (1:24)

Yeah, I was going to bring up the last retail sales report was also pretty weak. And then as we look at Texas Roadhouse and their earnings, the fourth quarter was great.

Jim Cramer (1:33)

Right?

Jeff Marks (1:33)

You had a same store sales beat, very strong earnings beat, really strong. And then, but when they talked about how they're doing in Q1, it's off to a noisy start. Some of it is related to calendar shifts. We explained it all last night. But January, they were impacted by snow closures. But then February, just really challenged flat comps. And again, mostly, it's freezing outside.

Jim Cramer (1:58)

Yeah, no, I mean, we waited. We started buying text restores when it was going out. It's so rarely down. And I feel, well, it's down. Everyone has a beat on what's going on. They did.

Jeff Marks (2:07)

It's pulled back around 18% from the high to...

Jim Cramer (2:10)

Yes, but I very much want to buy it. Now, I want to hear, obviously, what they have to say tonight. But on the conference call, I'm a believer in their thesis that it's weather because they are solid guys that were in... They were asked about this endless thing.

Jeff Marks (2:23)

Yeah. I mean, look, Q4, strong comps again, 7.7%.

Jim Cramer (2:26)

7%. Fantastic.

Jeff Marks (2:28)

And the cadence month by month, pretty consistent. January comps 5.5% despite impacts from snow. There's also some timing-related things as well. But then again, I mentioned February. So they're dealing with some temporary headwinds here, maybe creating a long-term opportunity. They did raise the commodity inflation outlook by 1%...

Jim Cramer (2:48)

Yeah, there was beef...

Jeff Marks (2:49)

.which hurts margins. But they also have a great balance sheet. They raised the quarterly dividend. They approved a new $500 million buyback program. Seems small, but it's only a $12 billion market cap.

Jim Cramer (3:00)

Right, that's important.

Jeff Marks (3:01)

So it is a meaningful amount.

Jim Cramer (3:04)

Look, I'm a believer. I've been waiting for it to go down. I mentioned that yesterday on our comps call. I hope you heard our call. And we're going to buy it. We can't buy it today, obviously. And I want to hear how big... I don't know how big until we speak to management today, tonight. I mean, I happen to think that these guys are the best operators in the country.

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SPEAKER_5 (3:37)

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