MCD and TXRH: 2 Low-Risk Restaurant Stocks With Upside

Core Insights - The restaurant sector is a key indicator of the K-shaped economy, with consumer sentiment diverging from actual behavior, particularly in food service [3][4] - McDonald's and Texas Roadhouse are outperforming competitors by focusing on value, leading to growth in comparable sales and market share [4][7] Company Performance - McDonald's reported Q4 2025 results with a 9.7% year-over-year sales growth, exceeding earnings per share and revenue projections [5] - Global same-store sales for McDonald's showed a 5.7% year-over-year growth, with a notable 6.8% growth in the U.S., contrasting with Wendy's decline of 5.5% in revenue and 11.3% drop in same-store sales [5][6] - The company's operating margins are projected to exceed 40% in 2026, supporting its Value Leadership strategy [5] Value Strategy - McDonald's Value Menu 2.0 is a permanent offering, featuring promotions like Extra Value Meals and the McValue platform, which includes $5 Meal Deals and Buy One, Get One for $1 offers [6] - The successful Grinch Meal holiday promotion resulted in the highest single-day sales in McDonald's history [6]