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Further Reading from MarketBeat.com MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideAuthor: Dan Schmidt. Article Posted: 2/17/2026. 
Article Highlights - 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 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 is one place where divergent trends become apparent quickly. While the upper end of the 'K' continues to indulge, more cost-conscious consumers at the bottom are searching for value to maximize their dollars. In such an economy, two restaurant chains are starting to stand out, albeit for very 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. Today we look at why these two 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" The recent earnings reports from McDonald's and Wendy’s Co. (NASDAQ: WEN) highlighted how players in the fast-food industry are separating themselves. McDonald’s reported Q4 2025 results last week and beat both EPS and revenue projections, delivering 9.7% year-over-year (YOY) sales growth. Global same-store sales crushed expectations with 5.7% YOY growth, 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 falling 11.3%. How has McDonald’s been able to grow sales at nearly a 7% clip in the U.S. while other quick-service restaurants struggle? The answer: value. The company projects operating margins above 40% in 2026, enabling it to pursue its Value Leadership strategy. Unlike the limited-time value promotions run by Wendy’s and Burger King, McDonald’s Value Menu 2.0 is a permanent fixture. Extra Value Meals were reintroduced last September. 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 delivered the biggest single-day sales figure in the company’s history. Additionally, the McDonald’s app—used by roughly 200 million active users—helps drive repeat business, and marketing focused on chicken items such as the McCrispy mitigates the impact of beef price inflation. The company also plans to open an additional 2,600 stores this year, while competitors like Wendy’s are closing underperforming locations. 
MCD's breakout began 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-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, supported by both fundamental and technical catalysts in 2026. Texas Roadhouse Gains Share Despite Commodity Headwinds Soaring beef prices have loomed over Texas Roadhouse shares for much of the past year. Beef prices have risen faster than inflation since the COVID-19 pandemic began, and the surge over the last two years has unnerved restaurant owners and investors alike. The rise has been driven in part by cattle shortages, which pushed live cow and steer prices to record levels, a trend that may persist into 2027. Despite this headwind, Texas Roadhouse’s same-store sales are growing faster than those of its casual-dining rivals. Texas Roadhouse’s barbell business strategy offers value to cost-conscious customers while providing premium steaks and add-on options for diners who want to splurge. In its Q3 2025 report, the company posted comps of 6.1% and nearly 13% YOY revenue growth despite a 224-basis-point increase in food and beverage costs. Texas Roadhouse raised prices by only 1.7% to offset these costs—a deliberate margin sacrifice to retain value-oriented diners. The customer experience is a key reason for Texas Roadhouse’s resilience. Traffic durability is an important metric for casual-dining chains that depend on repeat visits. Large portion sizes, fast servers, streamlined digital kitchens, and numerous add-ons and upgrades give Texas Roadhouse the feel of a special night out without breaking the bank. Customers often say the restaurant is "worth it" for date nights and family dinners because they expect consistent value and experience. 
TXRH's performance so far this year suggests the doldrums of 2025 may be behind it. The stock opened 2026 with an 11-day winning streak, breaking through the 200-day SMA that had resisted previous breakout attempts. The streak was followed by consolidation, during which the Relative Strength Index (RSI) retreated to more neutral levels while the 50-day and 200-day SMAs converged. With a Golden Cross appearing imminent, the 50-day SMA could become support for a new rally. That area has already been tested once and held, and the share price is now approaching the 50-day moving average—potentially an opportune entry point for new investors. A near-term catalyst: the company reports its Q4 2025 results after the market closes on Feb. 19.
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