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This Week's Featured Content MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideWritten by Dan Schmidt. Article Published: 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 this 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) continue to grow comparable sales and gain market share from competitors. Below, we look at 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 The earnings reports from McDonald’s and Wendy’s Co. (NASDAQ: WEN) over the past week underscored how companies in the fast-food space are separating themselves. McDonald’s reported Q4 2025 results last week and beat both earnings-per-share (EPS) and revenue projections, with 9.7% year-over-year (YOY) sales growth. Global same-store sales topped 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 managed nearly 7% U.S. sales growth while other quick-service restaurants (QSRs) struggle? Value, value, and more value. The company projects operating margins above 40% in 2026, enabling it to pursue an aggressive Value Leadership strategy. Unlike the limited-time promotions run by some rivals, 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 drove the largest single-day sales figure in the company’s history. The McDonald’s app — with roughly 200 million active users — helps drive repeat visits, while a marketing emphasis on chicken meals like the McCrispy reduces exposure to beef price inflation. The company also plans to open about 2,600 additional restaurants this year, while competitors such as Wendy’s are closing underperforming locations. 
The breakout in MCD shares began well before last week’s earnings. 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 trading down for value, McDonald’s is well-positioned to keep growing sales, with both fundamental and technical catalysts in 2026. Texas Roadhouse Gains Market Share Despite Commodity Headwinds Soaring beef prices have hung over Texas Roadhouse shares for much of the past year. Beef costs 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. Part of the rise reflects cattle shortages that have pushed live cow and steer prices to record levels — a dynamic that may persist into 2027. Despite that headwind, Texas Roadhouse continues to see same-store sales grow faster than many casual-dining rivals. Its barbell business strategy blends value offerings for cost-conscious guests with premium steaks and upcharge options for diners 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 prices by just 1.7% — a deliberate margin trade-off intended to preserve perceived value for customers. Customer experience is central to Texas Roadhouse’s appeal. Durable traffic is crucial for fast-casual chains that rely on repeat visits. Large portions, attentive servers, streamlined digital kitchens, and numerous add-ons create the feeling of a special night out without an excessive bill. Many customers say the restaurant is "worth it" for date nights and family dinners because it reliably delivers both value and a satisfying experience. 
TXRH’s performance so far this year suggests the doldrums of 2025 may be over. The stock rose in 11 consecutive trading days to open 2026, breaking above the 200-day SMA that had thwarted earlier breakout attempts. That winning streak gave way to consolidation as the Relative Strength Index (RSI) cooled to more neutral levels and the 50-day and 200-day SMAs converged. With a potential Golden Cross forming, the 50-day SMA could act as support for a fresh rally. That moving-average area has already been tested and held, and the share price is approaching the 50-day SMA again. This could be an attractive entry point for new investors, particularly with a catalyst coming when the company reports its Q4 2025 results after the market close on Feb. 19.
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