Healthy demand for the shares

Texas Roadhouse (TXRH) broke out of its base Tuesday after a better-than-expected earnings report, and Cheesecake Factory (CAKE) also cleared a base, leading a host of restaurant stocks higher.
Texas Roadhouse gapped up, clearing a 17.93 buy point in huge volume as it broke out of a flat base.
The nine-week pattern also can be viewed as the handle to a larger cup with handle.
The stock has a 96 Composite Rating, putting it fifth among 53 companies in IBD's restaurants industry group.
The company said late Monday Q1 profit rose 15%, beating expectations. Sales rose 14%, accelerating for the second straight quarter.
The stock has an A- Accumulation-Distribution Rating, indicating healthy demand for the shares. Yet the company's quarterly profit growth hasn't topped the 25% that's common of leading stocks in six quarters, and Q2 earnings are seen rising just 5%.
Meanwhile, Cheesecake Factory hit a new high as it cleared a flat base. The buy point was 31.68, which it topped Thursday, although 32.57 can be treated as an alternative buy point.
The company announced Thursday that Q1 profit rose a better-than-expected 9% on a 4% increase in sales. The company has averaged 28% profit growth over the past three years, but earnings growth over the past three quarters averaged just 18%. Quarterly sales growth over the past three years has been mainly under 10%.
Although the two stocks are not in the top tier of industry leaders, the new breakouts suggest there's still strength in restaurant stocks. The industry group ranked No. 38 out of 197 as of Tuesday's IBD.
Meanwhile, Red Robin Gourmet Burgers (RRGB) reclaimed its 50-day line. The company is expected to report May 17 that Q1 profit rose 12%, down sharply from triple-digit gains in the two prior quarters. The stock is shaping a flat base with a 38.08 buy point.
Also Tuesday, Brinker International (EAT), the operator of Chili's restaurants, jumped to a new high, and Dunkin' Brands (DNKN), which owns Dunkin' Donuts and Baskin-Robbins ice cream parlors, is near an all-time high.