12:06 PM EDT, 07/05/2024 (MT Newswires) -- Texas Roadhouse ( TXRH ) remains poised for "sustainable" growth and gains in market share despite macro hurdles and beef cost inflation, UBS Securities said Friday in a report.

"Sales leverage and labor efficiencies will support solid margin gains and earnings growth" this year "with increasing confidence that competitive advantages will enable a multiyear sales outperformance," UBS said.

With commodity inflation of 3% in 2024, driven by moderate beef inflation and wage inflation of 4% to 5%, "we anticipate still solid full-year margin expansion," UBS said.

The company "appears well positioned for resiliency," partly because of "strong customer brand affinity, elevated service levels and compelling value," the report said. "Sustained traffic and market gains should enable solidly double-digit EPS growth and further upside for shares."

UBS has a buy rating on Texas Roadhouse ( TXRH ) and a $185 price target. The company is set to release Q2 results on July 25.

Texas Roadhouse ( TXRH ) shares rose 1.7% in recent trading Friday.

Price: 169.42, Change: +2.78, Percent Change: +1.67