Every day, CNBC Investing Club with Jim Kramer releases home stretches. Market: In a relatively quiet session, stocks are slightly lower to close the week. The market went out a bit after the Financial Times reported that President Donald Trump wanted a minimum tariff of 15% to 20% on all goods imported from the European Union, but not so important. This shows that while it is still down from the 30% rate that the president threatened last Saturday, the two could still be apart when they reach the contract. Beef Trouble Brewing: Shares in the club name Texas Roadhouse have recently stumbled. Since closing nearly $200 on May 27th, inventory has fallen by about 8%, with the S&P 500 rising 6% over the same period. Part of the reason stocks aren’t keeping up to the wider market is accelerating beef inflation. In a second-quarter revenue preview note for the restaurant industry on Friday, Bank of America analysts noted that beef prices rose by about 15% year-on-year in the second-quarter, compared to a more moderate 4.3% increase in the first-quarter. As a steakhouse chain, beef is one of the biggest costs of the Texas Roadhouse, and has been facing problems with recent price surges. The swing of the product affects the sales margin. It tends to rise when product prices drop, and it is stubborn when prices rise, and cannot be offset when menu prices rise. Still, rising beef prices did not prevent Bank of America from raising its Texas Roadhouse price target to $219 per share, from $203 on Friday. BOFA analysts have increased their price targets as they are ahead of consensus estimates for both the remainder of 2025, 2026 and 2027 and the earnings per share for 2026 and 2027 and sales for both the same store. Beef prices have made some holes in this story, but we are at the Bank of America camp about the long-term trajectory of the business. The company continues to post best-in-class transportation trends, steadily expanding every year with new locations. Although cattle stock and herd sizes will take time to rebuild, we want to be patient. Next week: Revenue is expected to be reported by approximately 20% of the S&P 500 next week. We’ve heard from five companies in our portfolio: Danaher, Capital One, Ge Ververnova, Honeywell, and Dover. We go out on Sundays, looking deeper into what we expect from each club name. Next week, several other big headliners are Tesla, Alphabet, ServiceNow, Chipotle, IBM, and Coca-Cola. (For a full list of Jim Kramer’s Charitable Trust stocks, see here.) As a member of the CNBC Investment Club with Jim Kramer, you will receive a trade warning before Jim can trade. Jim waits 45 minutes after sending a trade alert before purchasing or selling stocks in the Charitable Trust portfolio. If Jim talks about stocks on CNBC TV, he will wait 72 hours after issuing a trade alert before running the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with the disclaimer. Due to receiving information provided in connection with the Investment Club, there is no obligation or obligation of the fiduciary. No specific outcomes or benefits are guaranteed.
