Jim Cramer Says He's Buying Texas Roadhouse (TXRH) Shares - 'A Lot of Room to Grow'

We recently published a list of Jim Cramer Was Talking About These 10 Stocks Amid Trump’s Trade Wars. In this article, we are going to take a look at where Texas Roadhouse, Inc. (NASDAQ:TXRH) stands against other stocks that Jim Cramer was talking about amid Trump’s trade wars.

Jim Cramer in a latest program on CNBC urged investors to start accepting the reality of the new economic system under President Trump and said the new tariffs will result in higher prices and more volatility. Cramer said Trump does not “care” about stock prices or inflation and wants to punish the country’s trading partners.

“Yes, I want this over. Yes, I want clarity. I want some sense of how this can all end, but that makes me a fool like the rest of us. We keep thinking that’s the point. That’s how… that’s not how Trump sees it. Here is the point: we should simply be looking at companies that cater to small- and medium-sized businesses that can’t be hurt by tariffs. We need to accept a higher level of inflation because it’s coming. We should take our out some money and put it on the sidelines, betting that this will end someday, even if we don’t know when. But right now, we have to get with the program and the president. The program is taking down our trading partners and hurting bottom lines all over the place. He doesn’t care. He demonstrated that tonight. So you better get used to it.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 stocks Jim Cramer was talking about over the past few weeks. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Texas Roadhouse Inc (NASDAQ:TXRH)

Number of Hedge Fund Investors: 45

Jim Cramer continues to remain bullish on Texas Roadhouse. Here is what he said in a recent program on CNBC:

“Texas Roadhouse (TXRH) stock I like so much we decided to buy some for the charitable trust two weeks ago. These guys reported what I thought was a darn good quarter, with better-than-expected same-store sales up 7.7% alongside a healthy earnings beat. Sure, not as crazy as the results from Brinker, absolutely, but Texas Roadhouse is a much more mature company. It just happens to be a real steady operator with a lot of room to grow. Also, unlike Brinker, Texas Roadhouse has held up surprisingly well, with the stock down only a few from early February, even as it had a tough week and a tough day. At one point, it was down 6.5 bucks today. That said, I like this one for the same reason I like Brinker. Texas Roadhouse offers what I call relative value. It may be a steakhouse, but it’s a bargain versus the competition. Where else can you get an 8-ounce steak with two sides for $9.99 on the Wild West?”

Baird Mid Cap Growth Equity Strategy stated the following regarding Texas Roadhouse, Inc. (NASDAQ:TXRH) in its Q2 2024 investor letter:

“Adjustments made to our consumer discretionary exposure include the addition of two new positions, Texas Roadhouse, Inc. (NASDAQ:TXRH) and Dutch Bros—both restaurants. Texas Roadhouse is a full-service casual dining chain with a long history of consistent sales and profit growth and above-average returns. We believe recent inflationary pressures across the restaurant space have broadened Texas Roadhouse’s competitive positioning.”

Overall, TXRH ranks 3rd on our list of stocks that Jim Cramer was talking about amid Trump’s trade wars. While we acknowledge the potential of TXRH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TXRH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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