Jan 19, 2026 2 min read 0 views

Jim Cramer Highlights Texas Roadhouse Stock Upside

Jim Cramer expressed optimism for Texas Roadhouse stock, citing its resilience and potential margin expansion due to falling steak prices after tariff cuts on Brazilian beef.

Jim Cramer Highlights Texas Roadhouse Stock Upside

Jim Cramer recently discussed Texas Roadhouse, Inc. (NASDAQ:TXRH) during a broadcast on November 25, 2025. He expressed optimism about the stock, which is held in his Charitable Trust portfolio.

"We had a monster move in the small caps as Russell 2000 broke out with space, alternative power… and of course quantum computing and nuclear power adjacencies all back in the win column," Cramer said. "Now, there’s some excellent news here. Let me give you some examples, because I hate to say that, oh, Russell this and S&P that. I like the resuscitation of the restaurant stocks. Starbucks and Texas Roadhouse, two Charitable Trust names, look, they were on the brink… not that long ago. Now they’re breaking out to the upside."

Texas Roadhouse operates casual dining restaurants under its namesake brand, as well as Bubba’s 33 and Jaggers.

In the same episode, Cramer elaborated on his interest in restaurant stocks. "Restaurants intrigued me now that we’re seeing commodity prices getting hit," he stated. "I’m particularly partial to any chain that’s been willing to sacrifice margins to keep customers coming. You know what that means? It means Brinker, symbol EAT, parent of Chili’s, and investing club holding Texas Roadhouse. Wow."

He specifically pointed to Texas Roadhouse's position. "The latter’s more levered to steak than any other chain, and its sales have held up because of its refusal to take price hikes lest it alienate its core customer," Cramer said. "So now that steak prices are coming down because the president has cut the tariffs on Brazilian beef, Texas Roadhouse should see its gross margins explode. And I don’t care that it’s up about 10 straight points."

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