Texas Roadhouse’s 7.1% Q1 comp sales growth contrasts with McDonald’s 3.72% FY2025 organic growth amid value-menu struggles.
Texas Roadhouse (TXRH) reported Q1 comparable sales growth of 7.1%, with average weekly sales rising to $174,151. The chain added 22 new locations and maintained a positive book value of $22.15 per share, driven by traffic expansion and a clean balance sheet.
McDonald’s (MCD) posted Q1 revenue of $6.52 billion, up 9.4% YoY, but organic growth for FY2025 slowed to 3.72% after stripping a $313 million currency tailwind. The company carries -$1.791 billion in shareholders’ equity due to debt-funded buybacks and trades at 23x P/E for low-single-digit growth.
Analysts highlight McDonald’s vulnerability to rising gas prices and tariffs, while Texas Roadhouse’s momentum is supported by unit expansion and a growing dividend. Shares of McDonald’s have declined over 10% in the past month, signaling cooling investor sentiment.