We’re selling 50 shares of Texas Roadhouse at roughly $187. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 550 shares of TXRH, decreasing its weighting to about 2.6% from 2.85%. We’re trimming our position in Texas Roadhouse to take advantage of the stock’s 12% gain to start 2026. If we go back a little further, shares of the steakhouse chain have rallied about 10% since we bought 70 shares in mid-December and upgraded our 1 rating . Over the same period, the S & P 500 is up about low single digits. TXRH .SPX 1Y mountain Texas Roadhouse vs. S & P 500 1 year It’s been a nice bounce back after a disappointing 2025, with investors expecting a better year due to consumer spending tailwinds from tax refund-related stimulus and peak beef pricing. Soaring beef prices are a big reason why the company’s restaurant margins have fallen from 17.1% in 2024 to an estimated 15.83% in 2025. Analysts expect another decline in margins this year. The current consensus estimate on FactSet is 15.18%. Shares have a lot more upside to them if the company catches a break on beef – and we’re optimistic that the day will come, especially as the Trump administration focuses on affordability. However, there is always a risk that prices stay elevated for longer, which is why we want to capitalize on this strong move over the past two weeks. We are also downgrading Texas Roadhouse back to our hold-equivlent 2 rating. From this sale, we will realize a small gain of about 1% on stock purchased in February 2025. (Jim Cramer’s Charitable Trust is long TXRH. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
