Texas Roadhouse Inc had a strong 2024 but its financials continue to indicate further upside ahead, which makes this restaurant stock a great buy following a 10% decline since late November.
On the other hand, VF Corp has already doubled over the past seven months – but investors should be on the lookout for any potential dip in this retail stock as the leadership of Bracken Darrell could push it further up this year.
Here’s what each of these stocks have in store for investors in 2025.
Texas Roadhouse Inc (NASDAQ: TXRH)
Texas Roadhouse is a Louisville headquartered chain of fast casual restaurants known broadly for its premium quality steaks at an exceptionally low price.
Other notable subsidiaries of TXRH include Bubba’s 33 and Jaggers.
Texas Roadhouse reported an 8.7% annualised growth in comparable restaurant sales for its third financial quarter in late October – indicating its low prices and superior quality tends to make its customers come back for more.
Earlier in January, Morgan Stanley analysts recommended that investors load up on shares of this restaurant stock on the weakness as they upgraded the TXRH stock to “overweight”.
The investment firm expects Texas Roadhouse to see continued momentum in footfall and improve its margins in 2025.
Morgan Stanley is bullish on Texas Roadhouse shares also because it doesn’t have any debt on the balance sheet, which creates more room for the company to invest in its three brands and focus on returning cash to shareholders.
Texas Roadhouse stock currently pays a dividend yield of 1.37%.
VF Corp (NYSE: VFC)
VF Corp is primarily known for designing and distributing apparel, footwear, and accessories with a strong focus on outdoor, active, and workwear categories.
Notable brands it currently owns include Timberland, The North Face, Vans, and Dickies.
VF Corp remains a high-risk investment, but it’s one that could also offer higher returns, given how well the business is turning around under the leadership of the new CEO Bracken Darrell.
Investors should know that Darrell has a history of fixing underperforming businesses – his most recent success stories being Old Spice and Logitech.
VF Corp chief executive Bracken Darrell has already managed to lower costs, improve sales, and increase gross margins since taking over the helm in June 2023. He unloaded Supreme – a streetwear brand to strengthen the balance sheet as well.
That said, there’s still a lot that needs to be accomplished before VF Corp stock can return to its high in 2021. But if Darrell succeeds in breathing new life into “Vans” this year, the company’s share price could climb further and that too significantly by the end of 2025.
Meanwhile, investors could take heart in the 1.37% dividend yield that VFC currently pays.
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