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McDonald’s shares fall as growth slows; Texas Roadhouse outperforms with strong sales and clean balance sheet.

Market News
13 May 2026
24/7 Wall Street
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Neutral
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McDonald’s reported a Q1 sales beat but shares have dropped over 10% recently due to slower organic growth, negative equity from debt-funded buybacks, and sensitivity to rising gas prices impacting its value menu. In contrast, Texas Roadhouse showed stronger fundamentals with 7.1% comparable sales growth, real unit expansion, a healthy balance sheet, and increased dividends. Investors are shifting focus to Texas Roadhouse as a more promising restaurant sector play amid McDonald’s valuation pressures and operational challenges.

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