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More Reading from MarketBeat Media MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideAuthor: 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.
- Special Report: [Sponsorship-Ad-6-Format3]
The restaurant sector is often at the forefront of discussions about the K-shaped economy. Although consumer sentiment continues to diverge from actual consumer behavior (especially in the retail sector), the food-service industry quickly reveals those split trends. As the upper end of the 'K' continues to indulge, cost-conscious consumers at the bottom are increasingly searching for value. In this environment, two restaurants are standing out for different reasons. The numbers speak clearly: McDonald’s Corp. (NYSE: MCD) and Texas Roadhouse Inc. (NASDAQ: TXRH) continue to grow comparable sales and gain 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 earnings reports from McDonald’s and Wendy’s Co. (NASDAQ: WEN) over the past week highlighted how players in fast food are separating themselves. McDonald’s reported Q4 2025 results last week, beating expectations on both earnings per share (EPS) and revenue, with 9.7% year-over-year (YOY) sales growth. Global same-store sales topped forecasts with 5.7% YOY growth, including 6.8% growth in the United States. By contrast, Wendy’s recent Q4 2025 report showed a 5.5% YOY 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 struggle? It comes down to value. The company projects operating margins above 40% in 2026, allowing it to pursue a sustained Value Leadership strategy. Unlike the limited-time promotions run by some competitors, 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 single-largest daily sales figure in McDonald’s history. The McDonald’s app — with roughly 200 million active users — drives repeat business, and a marketing focus on chicken items like the McCrispy helps offset beef-price inflation. The company also plans to open about 2,600 additional locations this year, while competitors such as Wendy’s are trimming underperforming restaurants. 
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 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 well positioned to keep growing sales, supported by both fundamental and technical catalysts in 2026. Texas Roadhouse Grows Market Share Despite Commodity Headwinds Soaring beef costs have hovered over Texas Roadhouse shares for much of the past year. Prices have been rising faster than inflation since the COVID-19 pandemic began, and the surge over the last two years has alarmed 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 likely to persist into 2027. Despite that headwind, Texas Roadhouse continues to grow same-store sales faster than many casual-dining rivals. Texas Roadhouse's barbell business strategy delivers value-focused options for cost-conscious customers while offering premium steaks and upcharge items 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. Management raised menu prices by only 1.7%, deliberately sacrificing some margin to retain value-oriented traffic. Customer experience is a key driver of Texas Roadhouse’s resilience. Traffic durability matters for casual-dining operators that rely on repeat visits. Large portion sizes, brisk service, streamlined digital kitchens, and numerous add-ons and upgrades create the feel of a special night out without breaking the bank — something diners frequently report is "worth it" for date nights and family dinners. 
TXRH’s performance so far this year suggests the doldrums of 2025 may be fading. The stock rallied 11 consecutive days to open 2026, breaking above the 200-day SMA that had blocked earlier breakout attempts. That streak was followed by a consolidation in which the Relative Strength Index (RSI) retreated to neutral levels while the 50-day and 200-day SMAs drew closer together. With a Golden Cross appearing imminent, the 50-day SMA could act as support for a renewed rally. That level has already held once, and the share price is now nearing the 50-day moving average — potentially an attractive entry point for new investors. A near-term catalyst is the company’s upcoming Q4 2025 results, scheduled after the market close on Feb. 19.
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