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This Month's Featured Story MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideSubmitted 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: [Sponsorship-Ad-6-Format3]
The restaurant sector has often been at the forefront of the debate on the K-shaped economy. While consumer sentiment continues to diverge from actual consumer behavior (especially in the retail sector), the food service industry quickly reveals those divergent trends. 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 chains are standing out for different reasons. The numbers speak for themselves: McDonald’s Corp. (NYSE: MCD) and Texas Roadhouse Inc. (NASDAQ: TXRH) are growing comparable sales and gaining market share. Below, we explain why each has thrived in a challenging dining landscape and why their stocks could outperform the restaurant industry this year. McDonald's Continues to Dominate the Fast Food Market Recent earnings reports from McDonald's and Wendy’s Co. (NASDAQ: WEN) highlighted the growing separation among fast-food players. McDonald’s reported Q4 2025 results last week, beating both EPS and revenue expectations with 9.7% year-over-year (YOY) sales growth. Global same-store sales exceeded forecasts with 5.7% YOY growth, including 6.8% growth in the United States. By contrast, Wendy’s Q4 2025 report showed a 5.5% YOY revenue decline and an 11.3% drop in U.S. same-store sales. How has McDonald’s achieved nearly 7% U.S. sales growth while other QSRs struggle? Value. The company projects operating margins above 40% in 2026, which supports its Value Leadership strategy. Rather than relying on limited-time promotions, McDonald’s has made value a core offering. Its Value Menu 2.0 is effectively permanent: Extra Value Meals were reintroduced last September, and earlier this year the company launched 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—about 200 million active users—drives repeat visits, and a marketing focus on chicken items like the McCrispy cushions the impact of beef-price inflation. The company also plans to open another 2,600 stores this year, while some competitors like Wendy’s are closing underperforming locations. 
MCD’s breakout started before last week’s earnings. A bullish crossover in the Moving Average Convergence Divergence (MACD) indicator coincided with the stock price moving above the 50-day and 200-day simple moving averages (SMAs), signaling strong upward momentum. If low-income consumers continue to trade down for value, McDonald’s is well-positioned to keep growing sales, with both fundamental and technical catalysts in 2026. Texas Roadhouse Grows Market Share Despite Commodity Headwinds Soaring beef prices have clouded Texas Roadhouse’s outlook for much of the past year. Beef prices have risen faster than inflation since the COVID-19 pandemic, and the surge over the last two years has unnerved restaurant owners and investors alike. The increase is driven in part by cattle shortages that pushed live cow and steer prices to record levels, a situation likely to persist into 2027. Despite this headwind, Texas Roadhouse continues to grow same-store sales faster than many casual-dining peers. The company’s barbell strategy offers value to budget-conscious customers while providing premium steaks and upcharge options 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. Management raised menu prices by only 1.7%, accepting some margin pressure to preserve perceived value and traffic. Customer experience is a central reason for the company’s resilience. Traffic durability matters for restaurants that rely on repeat business. Large portions, attentive servers, efficient kitchens, and a range of add-ons create a special-night-out feel without an excessive bill. Customers commonly report that Texas Roadhouse is "worth it" for date nights and family meals because the value and experience meet expectations. 
TXRH’s performance so far in 2026 suggests the doldrums of 2025 may be fading. The stock started the year with an 11-day winning streak that pushed it through the long-standing 200-day SMA resistance. 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 renewed rally. That level has already been tested and held, and the share price is once again approaching the 50-day moving average—an attractive entry point for new investors. A near-term catalyst: TXRH reports its Q4 2025 results after the market close on Feb. 19.
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