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Additional Reading from MarketBeat Media MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideAuthored by Dan Schmidt. Publication Date: 2/17/2026. 
Key Points - The restaurant industry has become a key indicator for the K-shaped economy.
- Winners and losers are beginning to emerge based on the perceived value they offer to both higher-end and lower-end customers.
- McDonald's and Texas Roadhouse continue to grow comps despite the tough environment thanks to their value-oriented focus that keeps diners coming back.
- Special Report: Silver records prices are great. Monthly income is better (From Investors Alley)
 The restaurant sector has often been at the forefront of the debate around a K-shaped economy. While consumer sentiment continues to diverge from actual behavior (especially in the retail sector), food service quickly reveals those divergent trends. The upper end of the 'K' continues to indulge, while more cost-conscious consumers at the bottom are hunting for value to stretch their dollars. In that environment, two restaurants are standing out for different reasons. The numbers speak for themselves: both McDonald’s Corp. (NYSE: MCD) and Texas Roadhouse Inc. (NASDAQ: TXRH) continue to grow comparable sales and capture share from competitors. Below, we explain why these chains have thrived amid a challenging dining backdrop and why their stocks could outperform the restaurant industry this year. McDonald's Continues to Dominate the Fast Food Market Recent earnings from McDonald's and Wendy’s Co. (NASDAQ: WEN) highlighted how fast-food operators are separating themselves. McDonald’s reported Q4 2025 results last week, beating both EPS and revenue estimates and reporting 9.7% year-over-year (YOY) sales growth. Global same-store sales exceeded expectations, rising 5.7% YOY, including 6.8% growth in the United States. By contrast, Wendy’s Q4 2025 report showed revenue down 5.5% YOY and U.S. same-store sales dropping 11.3%. How has McDonald’s managed nearly 7% U.S. sales growth while other quick-service restaurants struggle? The answer is value. The company projects operating margins above 40% in 2026, giving it the flexibility to pursue a Value Leadership strategy. Unlike the limited-time deals run by some competitors, McDonald’s Value Menu 2.0 is a permanent fixture. Extra Value Meals were reintroduced last September, and earlier this year the company rolled out the McValue platform, featuring $5 Meal Deals and Buy One, Get One for $1 offers. The Grinch Meal holiday promotion produced the biggest single-day sales figure in the company’s history. McDonald’s app has approximately 200 million active users, which helps drive repeat business, and marketing focus on chicken items like the McCrispy reduces the impact of beef-price inflation. The company also plans to open roughly 2,600 additional stores this year, while competitors such as Wendy’s are closing underperforming locations.  The breakout in MCD shares began well before last week’s results. A bullish crossover in the Moving Average Convergence Divergence (MACD) indicator coincided with the stock moving above the 50-day and 200-day simple moving averages (SMAs), signaling strong upward momentum. If lower-income consumers continue to trade down for value, McDonald’s is well positioned to keep growing sales, with both fundamental and technical catalysts lined up for 2026. Texas Roadhouse Grows Market Share Despite Commodity Headwinds Soaring beef prices have hung over Texas Roadhouse shares for most of the past year. Beef costs have risen faster than overall inflation since the COVID-19 pandemic, and a sharper surge over the last two years has concerned restaurant owners and investors. The increase is partly driven by cattle shortages that pushed live cow and steer prices to record levels — a dynamic likely to persist into 2027. Despite that headwind, Texas Roadhouse continues to deliver same-store sales growth ahead of casual-dining peers. Its barbell business strategy provides value to price-conscious diners while also offering premium steaks and upcharge options for guests willing to splurge. In its Q3 2025 report last November, the company posted comps of 6.1% and nearly 13% YOY revenue growth despite a 224-basis-point increase in food and beverage costs. Management raised menu prices by only 1.7% to offset some of those expenses, intentionally sacrificing margin to preserve value for guests. Customer experience is a key competitive advantage. For fast-casual chains that rely on repeat visits, traffic durability matters. Large portions, quick service, streamlined digital kitchens, and many add-ons give Texas Roadhouse the feel of a special night out without a large bill. Customers often report the experience is "worth it" for date nights and family dinners because the perceived value and quality meet expectations.  TXRH's performance so far in 2026 suggests the doldrums of 2025 may be fading. The stock rose for 11 consecutive trading days to start the year, breaking through the 200-day SMA that had previously capped rallies. That streak was followed by consolidation during which the Relative Strength Index (RSI) cooled to more neutral levels while the 50-day and 200-day SMAs converged. With a Golden Cross appearing imminent, the 50-day SMA could act as support for a new rally. That level has already been tested once and held, and the share price is now approaching the 50-day moving average again. This may be an opportune entry point for new investors, especially with a catalyst coming when the company reports its Q4 2025 results after the market close on Feb. 19.
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