This Dividend Payer Is Growing Like a Weed. Should You Buy Its Stock?
Investing in well-known businesses with loyal customers is as close to a foolproof investing strategy as possible. This is because loyal customers often spend more frequently and heavily than other customers, which can help a company steadily grow its sales and profits.
Steakhouse restaurant chain Texas Roadhouse (NASDAQ: TXRH) arguably fits this description to a T. But is the stock a buy for dividend growth investors? Let's dig into Texas Roadhouse's fundamentals and valuation to find an answer.
Often, the stories behind great businesses are just as interesting, if not more so, than the businesses themselves. Unbelievably, Texas Roadhouse's formula for success that it uses to this day was drawn out on a cocktail napkin by founder Kent Taylor. The secret ingredients to Texas Roadhouse's winning ways are to serve made-from-scratch food at a great price and couple that with top-notch guest service.
Source Fool.com
