Sell 150 shares of Texas Roadhouse stock for approximately $183. Following this transaction, the Jim Cramer Charitable Trust will own 400 shares of TXRH stock, reducing its stake from approximately 2.5% to approximately 1.85%. It will reduce its position in the restaurant chain, which was up nearly 2% on Monday. This is the company’s second Texas Roadhouse sale in 2026. The company previously sold 50 shares on January 12th for approximately $187 per share. Our layoffs are not due to poor company performance. When Texas Roadhouse releases its earnings results on February 19, we expect same-store sales to post another solid quarterly growth in the mid-single digits. As consumers become increasingly focused on cost, Texas Roadhouse’s value proposition of providing quality meals at reasonable prices stands out. Our only concern is rising beef prices, and the timing of any easing remains uncertain. To form expectations for beef prices and gain insight into when prices might fall, we read Monday’s earnings report from Tyson Foods, the largest meat producer in the United States. Tyson said he expects the supply of cattle to remain tight into 2026 and 2027, which he sees as an added negative for Texas Roadhouse’s case. Restaurateurs claim that commodity inflation will be around 7% in 2026, with inflation rates higher in the first half of the year than in the second half. But if Tyson is correct and cattle supplies remain tight into 2027, that could push forecasts to a time when beef price pressures ease. Cattle stocks may be at the bottom, and there are other ways to lower beef prices other than cow supply. For example, beef prices could fall due to increased imports of cattle from Mexico and Brazil. Still, Tyson has such a big view on the meat market that we would be unwise to ignore it. The sale realizes a small average gain of about 1% on the shares purchased last February. (Jim Cramer’s Charitable Trust is long TXRH. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
