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Additional Reading from MarketBeat MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideWritten by Dan Schmidt. Originally 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 been central to the debate over the K-shaped recovery. While consumer sentiment often diverges from actual behavior—especially in the retail sector—the food-service industry reveals those splits quickly. The affluent continue to trade up, while more cost-conscious consumers trade down in search of value. 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) continue to grow comparable sales and capture market share. Below, we explain why they’ve 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 The recent earnings reports from McDonald’s and Wendy’s Co. (NASDAQ: WEN) illustrated how fast-food players are pulling apart. McDonald’s reported Q4 2025 results last week, beating on both EPS and revenue, with 9.7% year-over-year (YOY) sales growth. Global same-store sales rose 5.7% YOY, including 6.8% growth in the U.S. By contrast, Wendy’s Q4 2025 report showed revenue down 5.5% YOY and U.S. same-store sales down 11.3%. How has McDonald’s managed near-7% U.S. sales growth while other quick-service restaurants struggle? Value, value, and more value. McDonald’s projects operating margins above 40% in 2026, which gives the company room to pursue a Value Leadership strategy. Unlike the limited-time value promotions at Wendy’s and Burger King, McDonald’s Value Menu 2.0 is a permanent fixture. Extra Value Meals returned last September, and earlier this year the company launched the McValue platform, featuring $5 Meal Deals and Buy One, Get One for $1 offers. The Grinch Meal holiday promotion produced the largest single-day sales figure in McDonald’s history. The McDonald’s app—about 200 million active users—drives repeat business, and a marketing push around chicken items like the McCrispy helps offset the impact of beef price inflation. The company also plans to open roughly 2,600 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 moving 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, supported by both fundamental and technical catalysts in 2026. Texas Roadhouse Grows Market Share Despite Commodity Headwinds Rising beef prices cast a long shadow over Texas Roadhouse shares for much of the past year. Beef prices have climbed faster than inflation since the COVID-19 pandemic began, and the surge over the last two years has unsettled restaurant operators and investors alike. The increase is partly driven by cattle shortages, which have pushed live cow and steer prices to record levels—a dynamic likely to persist into 2027. Despite that headwind, Texas Roadhouse continues to outpace many casual-dining rivals on same-store sales. Its 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 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 just 1.7%, a deliberate margin sacrifice to preserve value for its core customers. Customer experience is central to Texas Roadhouse’s appeal. Traffic durability—the ability to sustain repeat visits—matters for casual dining. Large portions, quick service, efficient digital kitchens, and numerous add-ons create the feel of a special night out without an excessive bill. Diners often say the restaurant is “worth it” for date nights and family meals because the value and experience meet expectations. 
TXRH’s stock action this year suggests the doldrums of 2025 may be over. The stock rose 11 days in a row to start 2026, breaking through the 200-day SMA that had blocked previous breakout attempts. That streak gave way to 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 support for a new rally. That level has already held once, and the share price is now approaching it again—potentially a good entry point for new investors. A related catalyst: Texas Roadhouse will report its Q4 2025 results after the market closes on Feb. 19.
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