Texas Roadhouse Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of rustic eatery operator Texas Roadhouse (NAS: TXRH) litter the trading floor today like discarded peanut shells, falling as much as 11.5% on very heavy volume.

So what: Second-quarter sales and earnings came in just short of Wall Street estimates, and management cut down its full-year earnings forecast to the bottom end of earlier projections. The company blames "inflationary pressures" for the adjustments.

Now what: That's a Texas-sized drop for problems on the scale of Rhode Island, if you get my drift. The chain still reports healthy same-store growth and balances out a modest debt load with a fat wallet. Like Buffalo Wild Wings (NAS: BWLD) and Chipotle Mexican Grill (NYS: CMG) , Texas Roadhouse is taking a cautious approach to growth and thereby exposing its shareholders to less risk than debt-fueled growth-chasers such as Brinker International (NYS: EAT) .

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At the time thisarticle was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. Fools like to eat: The Motley Fool owns shares of Chipotle Mexican Grill. Motley Fool newsletter services have recommended buying shares of Chipotle Mexican Grill and Buffalo Wild Wings. Motley Fool newsletter services have recommended creating a iron condor position in Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.

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