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Further Reading from MarketBeat Media MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideWritten by Dan Schmidt. Article Posted: 2/17/2026. 
At a Glance - 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 long been central to debates about the K-shaped economy. While consumer sentiment continues to diverge from actual consumer behavior (particularly in the retail sector), the food service industry quickly reveals divergent trends. The upper end of the "K" continues to indulge, while more cost-conscious consumers at the bottom search for value to stretch their dollars. In this environment, two restaurant companies 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 share from competitors. Below, we look at 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) highlighted how companies in the fast-food space 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 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 managed nearly 7% U.S. sales growth while other quick-service restaurants struggle? The answer is value. The company projects operating margins above 40% in 2026, giving it the flexibility 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, 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. McDonald’s also benefits from a large digital audience: its app has roughly 200 million active users, which supports repeat visits. A marketing emphasis on chicken items like the McCrispy reduces sensitivity to beef-price inflation. The company plans to open about 2,600 additional restaurants this year, while some competitors, including 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 climbing above its 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 positioned to keep growing sales, supported by 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 past year. Beef costs have been rising faster than overall 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 these headwinds, Texas Roadhouse continues to outpace many casual-dining rivals on same-store sales. The chain’s barbell business strategy offers value-conscious guests lower-cost options while still providing premium steaks and upcharge menu items for diners willing to splurge. In its Q3 2025 report from 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 menu prices by only 1.7% — a deliberate margin sacrifice to preserve value for customers. Customer experience is another key asset. Traffic durability matters for fast-casual chains that rely on repeat visits. Texas Roadhouse delivers large portions, attentive servers, efficient digital kitchens, and numerous add-ons and upgrades, creating the feel of a special night out without an exorbitant bill. Diners frequently report that the restaurant is "worth it" for date nights and family dinners because it reliably delivers value and a satisfying experience. 
TXRH’s stock performance so far in 2026 suggests the doldrums of 2025 may be fading. The share price was up 11 consecutive days to start 2026, breaking through the 200-day SMA that had previously capped rallies. That win streak gave way to a 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 a support level for a renewed rally. That zone has already been tested and held, and the stock is approaching the 50-day moving average again — a potential entry point for new investors, particularly with a catalyst ahead: Texas Roadhouse reports its Q4 2025 results after the close on Feb. 19.
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