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Additional Reading from MarketBeat Media MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideBy Dan Schmidt. First Published: 2/17/2026. 
Key Takeaways - 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 quickly reveals these divergent trends. 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 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 market share from competitors. Today, we look at why these two have thrived in a challenging dining environment and why their stocks could outperform the 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 fast-food players are separating themselves. McDonald’s reported Q4 2025 results last week and beat earnings-per-share (EPS) and revenue expectations, posting 9.7% year-over-year (YOY) sales growth. Global same-store sales exceeded forecasts with 5.7% YOY growth, 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 near-7% U.S. same-store-sales growth while other quick-service restaurants struggle? Value — consistently delivered. McDonald’s projects operating margins above 40% in 2026, which gives it flexibility to pursue a permanent Value Leadership strategy. Rather than relying on limited-time promotions like some competitors, 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, which includes $5 Meal Deals and Buy One, Get One for $1 offers. The Grinch Meal holiday promotion delivered the biggest single-day sales figure in the company’s history. The McDonald’s app, with roughly 200 million active users, helps drive repeat visits, and a marketing focus on chicken items — such as the McCrispy — reduces exposure to beef-price inflation. The company also plans to open another 2,600 stores this year, while competitors like Wendy’s are closing underperforming locations. 
The breakout in MCD shares began 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 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 Grows Market Share Despite Commodity Headwinds Soaring beef prices have shadowed Texas Roadhouse shares for much of the last year. Beef prices have outpaced inflation since the COVID-19 pandemic, and the acceleration over the last two years has rattled 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 situation likely to persist into 2027. Despite that headwind, Texas Roadhouse continues to outpace casual-dining rivals on same-store sales. The company’s barbell strategy delivers value to cost-conscious customers while offering premium steaks and add-ons 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 only 1.7% to offset those costs — a planned margin sacrifice intended to preserve value for its core customers. Customer experience is another key to Texas Roadhouse’s success. Traffic durability — the ability to keep customers coming back — matters for restaurants that rely on repeat visits. Large portions, fast service, streamlined digital kitchens, and many add-ons give Texas Roadhouse the feel of a special night out without breaking the bank. Customers often report the restaurant is “worth it” for date nights and family dinners because the combination of value and experience meets expectations. 
TXRH’s performance so far this year suggests the doldrums of 2025 may be over. The stock opened 2026 with an 11-day winning streak, breaking above the 200-day SMA that had previously capped rallies. That streak was followed by consolidation as the Relative Strength Index (RSI) normalized and the 50-day and 200-day SMAs converged. 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 approaching the 50-day moving average again — potentially an attractive entry point for new investors. A near-term catalyst is the company’s Q4 2025 results, due after the market close on Feb. 19.
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