Regular readers know that my investment bias here is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable, global trend as a support. And when you can combine these traits with defensive stock qualities, you're two steps ahead, which is why cereal giant Kellogg (NYSE: K) is worth a review.

The market sell-off and tumult of 2008 spared almost no stocks, and Kellogg took a beating as well, with investors driving shares down to the $35-range from $60.

Want to hold a small but interesting stock that is rather thinly followed by analysts? Try Texas Roadhouse, Inc. (NASDAQ: TXRH), a casual dining steakhouse that features in-house meat cutting. Pick your own steak and watch it being cooked just for you. All the home-made bread you can eat. Throw your peanut shells on the floor. Average meal price is $14.00. Texas Roadhouse currently has 250 restaurants in 43 states, with plans to open another two dozen before the end of 2006. In addition to steaks, the menu also features beef ribs, pork and chicken. Carnivores rule here.

Texas Roadhouse went public in 2004. The stock split 2:1 on September 26, 2005. Shares have slowed a bit since then. Senior management made a presentation on September 19, 2006 at Bank of America's 36th Annual Investment Conference in San Francisco. Highlights of the presentation are: $600 million in total revenues for 2006. Income from operations is forecast to exceed $55 million (I said it was a small company). Earnings per share should be in the 39-43 cents range. Average per restaurant sales volume for 2006 is forecast at $4 million. Sames stores sales growth is modest at 2-3%.

Currently, Texas Roadhouse serves dinner during the week, but expands to include lunch as well as dinner on weekends. Restaurant stocks are notoriously fickle investment vehicles, but Texas Roadhouse compares favorably with its closest competitors, Outback Steakhouse and TGI Fridays.

TXRH closed at $13.53 on September 19, 2006, up 3 cents per share. 798,041 shares traded hands.

[Photo The Jamoker]