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Additional Reading from MarketBeat.com MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideAuthored by Dan Schmidt. Publication Date: 2/17/2026. 
In Brief - 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 makes divergent trends apparent quickly. As the upper end of the 'K' indulges, more cost-conscious consumers at the bottom are searching for value to stretch their dollars. In this environment, two restaurant chains are starting to stand 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 landscape and why their stocks could outperform the restaurant industry this year. McDonald's Continues to Dominate the Fast Food Market The recent earnings reports from McDonald’s and Wendy’s Co. (NASDAQ: WEN) underline how fast-food players are separating themselves. McDonald’s reported Q4 2025 results and beat both earnings-per-share (EPS) and revenue projections, with 9.7% year-over-year (YOY) 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 a 5.5% revenue decline and an 11.3% drop in U.S. same-store sales. How has McDonald’s managed nearly 7% U.S. sales growth while other quick-service restaurants (QSRs) struggle? The answer is value. McDonald’s projects operating margins above 40% in 2026, which enables it to pursue a Value Leadership strategy. Unlike the limited-time value 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, including $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 lengthy history. Additionally, the McDonald’s app — with roughly 200 million active users — helps drive repeat business. The marketing focus on chicken products such as the McCrispy also mitigates the impact of beef price inflation. The company plans to open about 2,600 additional stores this year, while competitors like Wendy’s are closing underperforming locations. 
The breakout in MCD shares 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 value-seeking consumers continue to trade down, 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 hung over Texas Roadhouse shares for much of the last year. Beef costs have been rising faster than inflation since the COVID-19 pandemic began, and the sharp surge over the last two years has unnerved restaurant owners and investors alike. The rise has been driven in part by cattle shortages that pushed live cow and steer prices to record levels, a dynamic expected to persist into 2027. Despite this headwind, Texas Roadhouse is still posting same-store sales growth faster than many casual-dining rivals. Texas Roadhouse’s barbell business strategy delivers value to cost-conscious customers while offering premium steaks and upcharge options for diners willing to splurge. In its Q3 2025 report, the company reported 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 some of those costs — a deliberate margin choice to preserve perceived value for customers. Customer experience is another key to Texas Roadhouse’s success. Traffic durability — the ability to keep customers coming back — matters for casual-dining restaurants that depend on repeat visits. Large portions, attentive servers, streamlined digital kitchens, and many add-ons and upgrades give Texas Roadhouse the feel of a special night out without breaking the bank. Diners frequently report that the restaurant is “worth it” for date nights and family dinners because they know the value and experience will meet expectations. 
The performance of TXRH shares so far this year suggests the doldrums of 2025 may be behind it. The stock was up 11 days in a row to open 2026, breaking through the 200-day SMA that had blocked earlier breakout attempts. That streak was followed by a consolidation during which the Relative Strength Index (RSI) moved back to more neutral levels while the 50-day and 200-day SMAs converged. With a Golden Cross seemingly imminent, the 50-day SMA could become a new support level. That area has already been tested and held, and the share price is now approaching the 50-day moving average — potentially an attractive entry point for new investors. A catalyst is arriving this week when the company reports its Q4 2025 results after the market closes on Feb. 19.
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