Texas Roadhouse shares hit all-time low

Shares dropped 27 cents, or 3.8 percent, to end at $6.87. Earlier in the day, the stock fell to an all-time low of $6.15. In the past 52 weeks, the stock had traded between $6.78 and $13.60.

On Tuesday, the day after the company reported its earnings, SunTrust Robinson Humphrey analyst Christopher O'Cull said in a note to investors he expects the company to struggle to grow its sales during the holiday season, given its lack of marketing.

"Given its limited marketing outside the four walls, the competitive promotional environment could prove to be challenging for Texas Roadhouse during the holidays," O'Cull said. The analyst has a "Neutral" rating on the company.

Restaurants are largely competing for consumers' dollars through offering value and discounts. Consumers have increasingly been cutting back due to high gas prices, the downturn in the housing market and fear that a prolonged recession could be on its way.

The spending cutbacks led Texas Roadhouse to reported a slide in its third-quarter net income after the market closed Monday. The company said its profit fell to 12 cents per share, about 1 cent shy of Wall Street analysts' estimates.

Same-store sales, or sales at stores open at least a year, fell 3.2 percent at company-owned restaurants and dipped 4.5 percent at franchise-owned ones.

Total revenue grew 15 percent during the quarter, but that growth came completely from the addition of new locations.

Texas Roadhouse also said its profit would likely be flat for the 2008 fiscal year due to slow sales. Same-store sales, the company said, would probably decline between 2 percent and 2.5 percent.