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 is a setting in which divergent trends become apparent quickly. While the upper end of the ‘K’ continues to indulge, more cost-conscious consumers at the bottom are searching for value to maximize their dollars.
In such an economy, two restaurants are starting to stand out, albeit for very different reasons. But the numbers speak for themselves, and McDonald’s Corp. (NYSE: MCD) and Texas Roadhouse Inc. (NASDAQ: TXRH) continue to grow comparable sales and gain market share from their competitors. Today, we’ll look at why these two have thrived in a challenging dining environment, and explain why their stocks could be set up to outperform the restaurant industry this year.
