Recently, the Jim Cramer Charitable Trust sold 150 shares of Texas Roadhouse, resulting in a total of about $183. This brings the trust’s holdings down to 400 shares, decreasing its ownership from around 2.5% to about 1.85%. This marks the second sale involving Texas Roadhouse in 2026, with a prior sale of 50 shares at approximately $187 each on January 12. Despite the reduced stake, the restaurant chain saw a nearly 2% uptick in its stock price on Monday.
It’s important to clarify that the layoffs are not reflective of poor company performance. When the earnings results are released on February 19, expectations are for same-store sales to show solid growth in the mid-single digits. Given rising consumer focus on affordability, Texas Roadhouse’s strategy of offering quality meals at reasonable prices continues to resonate well. However, rising beef prices pose a concern, and the timeline for any potential decrease in prices remains unclear.
To gauge future beef price trends, the trust is closely monitoring Tyson Foods’ latest earnings report. Tyson, a prominent meat producer in the U.S., anticipates a tight cattle supply extending into 2026 and 2027, which might complicate Texas Roadhouse’s situation. Restaurateurs project commodity inflation at around 7% for 2026, with the first half likely to see higher rates than the latter half. If Tyson’s projections prove accurate, it could mean a longer wait for relief from beef price pressures. Although cattle stocks might be at a low point, other factors, such as increased imports from Mexico and Brazil, could potentially help lower beef prices as well. Still, Tyson’s insights carry significant weight in the meat market and shouldn’t be overlooked.
The recent sale resulted in a modest average gain of about 1% on shares purchased last February. As part of Jim Cramer’s CNBC Investment Club, members receive trade alerts prior to any trades made by Jim. After sending out a trade alert, there’s a waiting period of 45 minutes before executing buys or sells in the portfolio. If a stock is discussed on CNBC, Jim will send an alert and then wait 72 hours before proceeding with the trade. Information regarding the investment club is governed by the Terms of Use and Privacy Policy, and there are no guarantees of specific results or benefits arising from the information shared.
