TXRH
Texas Roadhouse, Inc.
Restaurants
Market Cap$10.58B
5Y Perf.+208.0%
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Stock Comparison
TXRH vs MCD
Revenue, margins, valuation, and 5-year total return — side by side.
MCD
McDonald's Corporation
Restaurants
Market Cap$202.32B
5Y Perf.+52.5%
TXRH vs MCD — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TXRH | MCD |
|---|---|---|
| Industry | Restaurants | Restaurants |
| Market Cap | $10.58B | $202.32B |
| Revenue (TTM) | $5.83B | $26.26B |
| Net Income (TTM) | $437M | $8.41B |
| Gross Margin | 16.7% | 57.4% |
| Operating Margin | 8.9% | 46.1% |
| Forward P/E | 25.3x | 21.5x |
| Total Debt | $854M | $51.95B |
| Cash & Equiv. | $245M | $1.08B |
TXRH vs MCD — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TXRH
MCD
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Texas Roadhouse, In… (TXRH) | 100 | 308.0 | +208.0% |
| McDonald's Corporat… (MCD) | 100 | 152.5 | +52.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TXRH vs MCD
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MCD leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Texas Roadhouse, Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
TXRH
Texas Roadhouse, Inc.
The Growth Play
TXRH is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 16.0%, EPS growth 42.5%, 3Y rev CAGR 15.8%
- 302.2% 10Y total return vs MCD's 158.5%
- PEG 1.19 vs MCD's 2.82
Best for: growth exposure and long-term compounding
MCD
McDonald's Corporation
The Income Pick
MCD carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 26 yrs, beta 0.11, yield 2.4%
- Lower volatility, beta 0.11, current ratio 1.19x
- Beta 0.11, yield 2.4%, current ratio 1.19x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TXRH | 16.0% revenue growth vs MCD's 1.7% |
| Value | TXRH | PEG 1.19 vs 2.82 |
| Quality / Margins | MCD | 32.0% margin vs TXRH's 7.5% |
| Stability / Safety | MCD | Beta 0.11 vs TXRH's 0.70 |
| Dividends | MCD | 2.4% yield, 26-year raise streak, vs TXRH's 1.5% |
| Momentum (1Y) | TXRH | -5.1% vs MCD's -8.0% |
| Efficiency (ROA) | MCD | 13.9% ROA vs TXRH's 13.4%, ROIC 19.3% vs 20.4% |
TXRH vs MCD — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2024
TXRH vs MCD — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLTXRHLAGGINGMCD
MCDMcDonald's Corporation
3leads
TXRHTexas Roadhouse, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs MCDMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
MCD5/6
Valuation MetricsMultiples, price ratios, and targets
TXRH5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
TXRH5/6
Total Returns1Y, 3Y, 5Y total returns with dividends
TXRH5/6
Risk & VolatilityBeta, volatility, and downside exposure
MCD2/2
Analyst OutlookRatings, price targets, and dividends
MCD2/2
Income & Cash Flow (Last 12 Months)
MCD leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MCD is the larger business by revenue, generating $26.3B annually — 4.5x TXRH's $5.8B. MCD is the more profitable business, keeping 32.0% of every revenue dollar as net income compared to TXRH's 7.5%. On growth, TXRH holds the edge at +12.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TXRHTexas Roadhouse, … | MCDMcDonald's Corpor… |
|---|---|---|
| RevenueTrailing 12 months | $5.8B | $26.3B |
| EBITDAEarnings before interest/tax | $718M | $14.3B |
| Net IncomeAfter-tax profit | $437M | $8.4B |
| Free Cash FlowCash after capex | $341M | $7.4B |
| Gross MarginGross profit ÷ Revenue | +16.7% | +57.4% |
| Operating MarginEBIT ÷ Revenue | +8.9% | +46.1% |
| Net MarginNet income ÷ Revenue | +7.5% | +32.0% |
| FCF MarginFCF ÷ Revenue | +5.8% | +28.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +12.8% | +3.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -0.8% | +1.6% |
MCD leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
TXRH leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 24.7x trailing earnings, TXRH trades at a 1% valuation discount to MCD's 24.9x P/E. Adjusting for growth (PEG ratio), TXRH offers better value at 1.16x vs MCD's 3.26x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TXRHTexas Roadhouse, … | MCDMcDonald's Corpor… |
|---|---|---|
| Market CapShares × price | $10.6B | $202.3B |
| Enterprise ValueMkt cap + debt − cash | $11.2B | $253.2B |
| Trailing P/EPrice ÷ TTM EPS | 24.68x | 24.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.33x | 21.54x |
| PEG RatioP/E ÷ EPS growth rate | 1.16x | 3.26x |
| EV / EBITDAEnterprise value multiple | 16.10x | 18.33x |
| Price / SalesMarket cap ÷ Revenue | 1.97x | 7.81x |
| Price / BookPrice ÷ Book value/share | 7.79x | — |
| Price / FCFMarket cap ÷ FCF | 26.49x | 30.32x |
TXRH leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
TXRH leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), TXRH scores 9/9 vs MCD's 7/9, reflecting strong financial health.
| Metric | TXRHTexas Roadhouse, … | MCDMcDonald's Corpor… |
|---|---|---|
| ROE (TTM)Return on equity | +29.6% | — |
| ROA (TTM)Return on assets | +13.4% | +13.9% |
| ROICReturn on invested capital | +20.4% | +19.3% |
| ROCEReturn on capital employed | +23.4% | +23.3% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 7 |
| Debt / EquityFinancial leverage | 0.62x | — |
| Net DebtTotal debt minus cash | $609M | $50.9B |
| Cash & Equiv.Liquid assets | $245M | $1.1B |
| Total DebtShort + long-term debt | $854M | $51.9B |
| Interest CoverageEBIT ÷ Interest expense | — | 7.88x |
TXRH leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
TXRH leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TXRH five years ago would be worth $16,535 today (with dividends reinvested), compared to $13,445 for MCD. Over the past 12 months, TXRH leads with a -5.1% total return vs MCD's -8.0%. The 3-year compound annual growth rate (CAGR) favors TXRH at 15.8% vs MCD's 0.9% — a key indicator of consistent wealth creation.
| Metric | TXRHTexas Roadhouse, … | MCDMcDonald's Corpor… |
|---|---|---|
| YTD ReturnYear-to-date | -6.4% | -5.7% |
| 1-Year ReturnPast 12 months | -5.1% | -8.0% |
| 3-Year ReturnCumulative with dividends | +55.3% | +2.7% |
| 5-Year ReturnCumulative with dividends | +65.3% | +34.4% |
| 10-Year ReturnCumulative with dividends | +302.2% | +158.5% |
| CAGR (3Y)Annualised 3-year return | +15.8% | +0.9% |
TXRH leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
MCD leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
MCD is the less volatile stock with a 0.11 beta — it tends to amplify market swings less than TXRH's 0.70 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MCD currently trades 83.1% from its 52-week high vs TXRH's 79.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TXRHTexas Roadhouse, … | MCDMcDonald's Corpor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.70x | 0.11x |
| 52-Week HighHighest price in past year | $199.99 | $341.75 |
| 52-Week LowLowest price in past year | $153.82 | $282.40 |
| % of 52W HighCurrent price vs 52-week peak | +79.8% | +83.1% |
| RSI (14)Momentum oscillator 0–100 | 42.5 | 31.7 |
| Avg Volume (50D)Average daily shares traded | 958K | 2.9M |
MCD leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
MCD leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TXRH as "Hold" and MCD as "Buy". Consensus price targets imply 24.0% upside for MCD (target: $352) vs 20.0% for TXRH (target: $192). For income investors, MCD offers the higher dividend yield at 2.37% vs TXRH's 1.52%.
| Metric | TXRHTexas Roadhouse, … | MCDMcDonald's Corpor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $191.64 | $352.25 |
| # AnalystsCovering analysts | 43 | 62 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +2.4% |
| Dividend StreakConsecutive years of raises | 4 | 26 |
| Dividend / ShareAnnual DPS | $2.43 | $6.75 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.8% | +1.4% |
MCD leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
MCD leads in 3 of 6 categories (Income & Cash Flow, Risk & Volatility). TXRH leads in 3 (Valuation Metrics, Profitability & Efficiency).
Best OverallTexas Roadhouse, Inc. (TXRH)Leads 3 of 6 categories
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TXRH vs MCD: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TXRH or MCD a better buy right now?
For growth investors, Texas Roadhouse, Inc.
(TXRH) is the stronger pick with 16. 0% revenue growth year-over-year, versus 1. 7% for McDonald's Corporation (MCD). Texas Roadhouse, Inc. (TXRH) offers the better valuation at 24. 7x trailing P/E (25. 3x forward), making it the more compelling value choice. Analysts rate McDonald's Corporation (MCD) a "Buy" — based on 62 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TXRH or MCD?
On trailing P/E, Texas Roadhouse, Inc.
(TXRH) is the cheapest at 24. 7x versus McDonald's Corporation at 24. 9x. On forward P/E, McDonald's Corporation is actually cheaper at 21. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Texas Roadhouse, Inc. wins at 1. 19x versus McDonald's Corporation's 2. 82x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — TXRH or MCD?
Over the past 5 years, Texas Roadhouse, Inc.
(TXRH) delivered a total return of +65. 3%, compared to +34. 4% for McDonald's Corporation (MCD). Over 10 years, the gap is even starker: TXRH returned +302. 2% versus MCD's +158. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TXRH or MCD?
By beta (market sensitivity over 5 years), McDonald's Corporation (MCD) is the lower-risk stock at 0.
11β versus Texas Roadhouse, Inc. 's 0. 70β — meaning TXRH is approximately 527% more volatile than MCD relative to the S&P 500.
05Which is growing faster — TXRH or MCD?
By revenue growth (latest reported year), Texas Roadhouse, Inc.
(TXRH) is pulling ahead at 16. 0% versus 1. 7% for McDonald's Corporation (MCD). On earnings-per-share growth, the picture is similar: Texas Roadhouse, Inc. grew EPS 42. 5% year-over-year, compared to -1. 5% for McDonald's Corporation. Over a 3-year CAGR, TXRH leads at 15. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TXRH or MCD?
McDonald's Corporation (MCD) is the more profitable company, earning 31.
7% net margin versus 8. 1% for Texas Roadhouse, Inc. — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCD leads at 45. 2% versus 9. 6% for TXRH. At the gross margin level — before operating expenses — MCD leads at 56. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is TXRH or MCD more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Texas Roadhouse, Inc. (TXRH) is the more undervalued stock at a PEG of 1. 19x versus McDonald's Corporation's 2. 82x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, McDonald's Corporation (MCD) trades at 21. 5x forward P/E versus 25. 3x for Texas Roadhouse, Inc. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCD: 24. 0% to $352. 25.
08Which pays a better dividend — TXRH or MCD?
All stocks in this comparison pay dividends.
McDonald's Corporation (MCD) offers the highest yield at 2. 4%, versus 1. 5% for Texas Roadhouse, Inc. (TXRH).
09Is TXRH or MCD better for a retirement portfolio?
For long-horizon retirement investors, McDonald's Corporation (MCD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
11), 2. 4% yield, +158. 5% 10Y return). Both have compounded well over 10 years (MCD: +158. 5%, TXRH: +302. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between TXRH and MCD?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: TXRH is a mid-cap high-growth stock; MCD is a large-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(TXRH: 12.8% · MCD: 3.0%)Net Margin>
%
(TXRH: 7.5% · MCD: 32.0%)P/E Ratio<
x
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