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Tuesday's Featured Story MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideWritten by Dan Schmidt. First 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.
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 where those divergent trends quickly become apparent. 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 restaurants are standing out for different reasons. The numbers speak for themselves: McDonald's Corp. (NYSE: MCD) and Texas Roadhouse Inc. (NASDAQ: TXRH) are both growing comparable sales and gaining market share. Below, we explain why these two chains have thrived in a challenging dining market and why their stocks could outperform the restaurant industry this year. McDonald's Continues to Dominate the Fast-Food Market While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> Recent earnings reports from McDonald's and Wendy's Co. (NASDAQ: WEN) highlighted how fast-food players are separating themselves. McDonald's reported Q4 2025 results last week, beating both earnings-per-share (EPS) and revenue projections with 9.7% year-over-year (YOY) sales growth. Global same-store sales topped expectations, rising 5.7% YOY, 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% same-store-sales drop in the U.S. How has McDonald's managed nearly 7% U.S. sales growth while other quick-service restaurants struggle? It comes down to value. The company projects operating margins above 40% in 2026, which allows it to pursue its Value Leadership strategy. Unlike the limited-time promotions from Wendy's and Burger King, 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 biggest single-day sales figure in the company's history. The McDonald's app—about 200 million active users—drives repeat business, while marketing pushes around chicken items, such as the McCrispy, help offset beef-price inflation. The company also plans to open an additional 2,600 stores this year, even as competitors like Wendy's close underperforming locations. 
The breakout in MCD shares began well before last week's earnings. A bullish crossover in the Moving Average Convergence Divergence (MACD) 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 in 2026. Texas Roadhouse Gains Market Share Despite Commodity Headwinds Soaring beef prices have hung over Texas Roadhouse shares for much of the last year. Beef has been rising faster than inflation since the COVID-19 pandemic, and the surge over the last two years has concerned restaurant operators and investors alike. Part of the rise stems from cattle shortages that pushed live cow and steer prices to record levels—a trend that could persist into 2027. Despite that headwind, Texas Roadhouse continues to grow same-store sales faster than many casual-dining rivals. The chain's barbell business strategy offers value to cost-conscious customers while also providing premium steaks and upcharge options for diners willing to splurge. In its Q3 2025 report in November, 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 prices only 1.7%—an intentional margin sacrifice to retain value-oriented diners. Customer experience is central to Texas Roadhouse's strength. Traffic durability—a measure of repeat visits—is especially important for fast-casual restaurants. Large portions, quick service, streamlined digital kitchens, and many add-ons and upgrades give the restaurant the feel of a special night out without breaking the bank. Guests frequently say it's "worth it" for date nights and family dinners because they trust the 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 win streak, breaking through the 200-day SMA that had previously resisted breakout attempts. That streak was followed by consolidation, during which the Relative Strength Index (RSI) eased 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 a support level for a new rally. That area has already been tested and held, and the share price is now approaching the 50-day moving average—an opportune entry point for new investors, especially with a catalyst coming when the company reports its Q4 2025 results after the market closes on Feb. 19.
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