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Tuesday's Featured Article MCD and TXRH: 2 Low-Risk Restaurant Stocks With UpsideAuthor: Dan Schmidt. Date Posted: 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 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 reveals those divergent trends quickly. 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 such an 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 take share from competitors. Below, we explain why these two chains have thrived in a challenging dining environment and why their stocks could outperform the restaurant industry this year. McDonald's Continues to Dominate the Fast-Food Market The largest gold buyer in the world is expected to release a revolutionary way to invest in gold in 2026, potentially changing how everyday Americans save their wealth with a click of a button. Gold would need to climb another $4,500 for you to double your money at current prices. But one gold stock trading around $1.60 only needs to rise another $1.60 for you to double. That's the conservative estimate of what could happen when this new investment method becomes available to the public. Get the details on this opportunity before the 2026 launch. Recent earnings 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, beating both EPS and revenue projections with 9.7% year-over-year (YOY) sales growth. Global same-store sales exceeded expectations with 5.7% YOY growth, 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 nearly 7% U.S. sales growth while other quick-service restaurants struggle? It comes down to value. McDonald’s projects operating margins above 40% in 2026, which gives it room to pursue a Value Leadership strategy. Rather than relying on limited-time promotions like some rivals, McDonald’s has made value a more permanent part of its offer. Value Menu 2.0 remains a fixture, Extra Value Meals returned last September, and earlier this year the company launched the McValue platform, with $5 Meal Deals and Buy One, Get One for $1 offers. The Grinch Meal holiday promotion produced the company’s biggest single-day sales figure in its lengthy history. The McDonald’s app — with roughly 200 million active users — helps drive repeat visits. At the same time, marketing emphasis on chicken items such as the McCrispy helps mitigate the impact of beef-price inflation. The company also plans to open about 2,600 additional restaurants 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 both the 50-day and 200-day simple moving averages (SMAs), signaling strong upward momentum. If lower-income consumers continue trading down for value, McDonald’s is well-positioned to keep growing sales, supported by both fundamental and technical catalysts in 2026. Texas Roadhouse Gains Market Share Despite Commodity Headwinds Soaring beef prices have cast a long shadow over Texas Roadhouse shares for much of the past year. Beef costs have risen faster than inflation since the COVID-19 pandemic, and a sharper surge over the last two years has rattled restaurant operators and investors alike. The run-up 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 post same-store sales growth ahead of many casual-dining peers. The company’s barbell strategy offers value to cost-conscious customers while also providing premium steaks and upcharge options for diners willing to splurge. In its Q3 2025 report, Texas Roadhouse reported comps of 6.1% and nearly 13% YOY revenue growth despite a 224-basis-point increase in food-and-beverage costs. The chain raised menu prices by only 1.7%, a deliberate margin sacrifice aimed at retaining value-oriented diners. Customer experience is a key to Texas Roadhouse’s resilience. Traffic durability matters for fast-casual concepts that rely on repeat visits. Large portions, attentive servers, streamlined digital operations, and many add-ons and upgrades deliver the feel of a special night out without breaking the bank. Diners repeatedly report that a visit is "worth it" for date nights and family dinners because the value and experience meet expectations. 
TXRH’s performance so far this year suggests the doldrums of 2025 may be behind it. The stock opened 2026 with an 11-day winning streak that pushed it through the 200-day SMA that had previously capped gains. The streak was followed by 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 renewed rally. That area has already been tested once and held, and the share price is now approaching the 50-day moving average — a potential entry point for investors. A near-term catalyst is Texas Roadhouse’s upcoming Q4 2025 results, due after the market close on Feb. 19.
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