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Exclusive Content from MarketBeat.com MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideAuthored by Dan Schmidt. Article Posted: 2/17/2026. 
At a Glance - 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.
The restaurant sector has often been at the center of the debate over a K-shaped economy. While consumer sentiment diverges from actual consumer behavior (especially in the retail sector), the food-service industry makes those divergent trends apparent quickly. The upper end of the 'K' continues to indulge, while more cost-conscious consumers at the bottom are searching for value to stretch their dollars. In that environment, two restaurant companies are standing out for different reasons. The numbers speak for themselves: McDonald’s Corp. (NYSE: MCD) and Texas Roadhouse Inc. (NASDAQ: TXRH) continue to grow comparable sales and gain market share from competitors. Below, we explain why both have thrived in a challenging dining environment and why their stocks could outperform the restaurant industry this year. McDonald's Continues to Dominate the Fast-Food Market I Called Black Monday. Now I'm Calling March 26!
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Today, I'll show you how to get in before the big announcement. Click Here to See How to Secure Your "SpaceX Access Code" Recent earnings from McDonald’s and Wendy’s Co. (NASDAQ: WEN) highlighted how players in fast food are separating themselves. McDonald’s reported Q4 2025 results last week and beat both EPS and revenue estimates, with 9.7% year-over-year sales growth. Global same-store sales rose 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 declining 11.3%. How has McDonald’s managed nearly 7% U.S. same-store-sales growth when other quick-service restaurants struggle? Value. The company expects operating margins above 40% in 2026, which allows it to pursue a sustained Value Leadership strategy. Unlike the limited-time promotions from competitors, McDonald’s Value Menu 2.0 is a permanent fixture. Extra Value Meals were reintroduced last September, and earlier this year the company launched the McValue platform, which includes $5 Meal Deals and Buy One, Get One for $1 offers. The Grinch Meal holiday promotion produced the largest single-day sales figure in the company’s history. McDonald’s app — with roughly 200 million active users — drives repeat visits, and a marketing focus on chicken items such as the McCrispy helps mitigate beef-price inflation. The company also plans to open about 2,600 additional stores this year while some competitors, like Wendy’s, are closing underperforming locations. 
The breakout in MCD shares started well before last week’s earnings release. A bullish crossover in the Moving Average Convergence Divergence (MACD) indicator coincided with the stock rising above the 50- and 200-day simple moving averages (SMAs), signaling upward momentum. If lower-income consumers continue to trade down for value, McDonald’s is well positioned to keep growing sales, supported by both fundamental and technical catalysts in 2026. Texas Roadhouse Gains Share Despite Commodity Headwinds Soaring beef prices have hovered over Texas Roadhouse shares for most of the past year. Beef prices have climbed faster than inflation since the COVID-19 pandemic, and the surge over the last two years has rattled restaurant operators and investors. Higher prices stem in part from cattle shortages that pushed live cow and steer prices to record levels, a trend that may persist into 2027. Despite that headwind, Texas Roadhouse continues to grow same-store sales faster than many casual-dining rivals. The chain’s barbell strategy offers value to cost-conscious guests while providing premium steaks and optional upcharges for diners willing to splurge. In its Q3 2025 report, Texas Roadhouse posted comps of 6.1% and nearly 13% YOY revenue growth despite a 224-basis-point increase in food and beverage costs. The company raised menu prices by only 1.7%, a deliberate margin concession to retain value-oriented customers. Customer experience is a key differentiator. Traffic durability — the ability to sustain customer visits — matters for fast-casual chains that rely on repeat business. Large portions, fast service, streamlined digital kitchens and numerous add-ons give Texas Roadhouse the feel of a special night out without a hefty bill. Many diners say the chain is "worth it" for date nights and family dinners because they expect consistent value and experience. 
TXRH’s share performance so far this year suggests the doldrums of 2025 may be behind it. The stock gained in 11 consecutive trading days to open 2026, breaking above the 200-day SMA that had blocked earlier breakout attempts. That streak was followed by consolidation during which the Relative Strength Index (RSI) cooled to more neutral territory and the 50- and 200-day SMAs converged. With a Golden Cross appearing imminent, the 50-day SMA could become a support level for a fresh rally. The area has already been tested and held, and the share price is now approaching the 50-day average — a potential entry point for new investors. A near-term catalyst: Texas Roadhouse reports Q4 2025 results after the market closes on Feb. 19. Both McDonald’s and Texas Roadhouse offer different ways to play value-driven dining trends: McDonald’s through a permanent value platform and massive scale, and Texas Roadhouse through an experience-focused, value-forward casual-dining approach. For investors looking for relatively lower-risk exposure to the restaurant space, both names merit attention heading into 2026.
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