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MCD vs. TXRH: McDonald's vs. Texas Roadhouse Stock Comparison

How do McDonald's (MCD) and Texas Roadhouse (TXRH) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

McDonald's (MCD) and Texas Roadhouse (TXRH) are both classified in the Restaurants sub-industry within the broader Hotels, Restaurants & Leisure industry, placing them in the closest GICS peer bucket.

Company profile comparison for McDonald's (MCD) and Texas Roadhouse (TXRH)
Profile ItemMCDTXRH
NameMcDonald's CorporationTexas Roadhouse Inc.
Country/RegionUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer ServicesConsumer Services
GICS IndustryHotels, Restaurants & LeisureHotels, Restaurants & Leisure
GICS Sub-IndustryRestaurantsRestaurants
Market Capitalization195.16 billion USD12.07 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJuly 5, 1966October 5, 2004
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MCD
TXRH
GSPC
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McDonald's (MCD) vs. Texas Roadhouse (TXRH), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for McDonald's (MCD) and Texas Roadhouse (TXRH). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for McDonald's (MCD) and Texas Roadhouse (TXRH). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
Total Return (1Y)-3.33%16.80%
Total Return (3Y, Annualized)4.39%24.55%
Total Return (5Y, Annualized)4.66%17.06%

Risk Profile

Drawdown History

MCD
TXRH
GSPC
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McDonald's (MCD) vs. Texas Roadhouse (TXRH), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for McDonald's (MCD) and Texas Roadhouse (TXRH). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
Volatility (1Y, Annualized)20.82%32.17%
Beta (5Y)0.390.79
Max Drawdown (5Y)-30.98%-26.85%
Avg. Volume (3M)5.39M1.14M

Risk-Adjusted Performance

Risk-Return Positioning

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MCD and TXRH are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
Sharpe Ratio (1Y)-0.370.39
Sortino Ratio (1Y)-0.540.64

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Texas Roadhouse (TXRH) earns 27.77% on shareholders’ equity, ranked against its industry; McDonald's (MCD) has no ROE this period.

MCD

Consumer Services industry group

--

Max
76.75%
Q3
34.07%
Median
15.90%
Q1
3.23%
Min
-40.61%
MCD
--

TXRH

Consumer Services industry group

27.77%

Max
76.75%
Q3
34.07%
TXRH
27.77%
Median
15.90%
Q1
3.23%
Min
-40.61%
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): MCD does not report ROE, so it has no value marker; TXRH is benchmarked against the Consumer Services industry group.

Net Margin (TTM)

McDonald's (MCD) at 32.38% converts revenue to bottom-line profit above its industry’s benchmark range, while Texas Roadhouse (TXRH) at 6.59% keeps roughly the typical share for its industry.

MCD

Consumer Services industry group

32.38%

MCD
32.38%
Max
25.52%
Q3
12.95%
Median
6.63%
Q1
1.46%
Min
-14.36%

TXRH

Consumer Services industry group

6.59%

Max
25.52%
Q3
12.95%
Median
6.63%
TXRH
6.59%
Q1
1.46%
Min
-14.36%
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

McDonald's (MCD) at 48.29% operates in the top operating margin quartile, ahead of Texas Roadhouse (TXRH) at 6.78%, which runs around its industry’s norm.

MCD

Consumer Services industry group

48.29%

Max
49.05%
MCD
48.29%
Q3
24.35%
Median
14.23%
Q1
5.67%
Min
-16.47%

TXRH

Consumer Services industry group

6.78%

Max
49.05%
Q3
24.35%
Median
14.23%
TXRH
6.78%
Q1
5.67%
Min
-16.47%
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
ROE (TTM)--27.77%
ROA (TTM)--8.85%
Net Margin (TTM)32.38%6.59%
Operating Margin (TTM)48.29%6.78%
Gross Margin (TTM)57.62%16.28%

Growth

Revenue Growth

Both McDonald's (MCD) at 3.72% and Texas Roadhouse (TXRH) at 9.39% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both McDonald's (MCD) at 4.92% and Texas Roadhouse (TXRH) at -5.72% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
Revenue Growth (YoY)3.72%9.39%
Revenue Growth (3Y CAGR)5.06%13.55%
EPS Growth (YoY)4.92%-5.72%
EPS Growth (3Y CAGR)12.78%15.39%

Financial Strength

Current Ratio (MRQ)

Short-term liquidity can only be read on one side of this pairing: Texas Roadhouse (TXRH) shows current ratio of 0.38 against its industry benchmark, while McDonald's (MCD) has no reading this period.

MCD

Consumer Services industry group

--

Max
3.41
Q3
1.85
Median
1.06
Q1
0.72
Min
0.22
MCD
--

TXRH

Consumer Services industry group

0.38

Max
3.41
Q3
1.85
Median
1.06
Q1
0.72
TXRH
0.38
Min
0.22
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): MCD does not report current ratio, so it has no value marker; TXRH is benchmarked against the Consumer Services industry group.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Texas Roadhouse (TXRH) carries debt-to-equity ratio of 0.67 against its industry range, while McDonald's (MCD) reports no figure this period.

MCD

Consumer Services industry group

--

Max
6.12
Q3
2.93
Median
1.29
Q1
0.37
Min
0.01
MCD
--

TXRH

Consumer Services industry group

0.67

Max
6.12
Q3
2.93
Median
1.29
TXRH
0.67
Q1
0.37
Min
0.01
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): MCD does not report debt-to-equity ratio, so it has no value marker; TXRH is benchmarked against the Consumer Services industry group.

Financial Strength Metrics

Financial strength metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
Current Ratio (MRQ)--0.38
Debt / Equity (MRQ)--0.67
Net Debt / EBITDA3.571.30

Dividends

Dividend Yield (TTM)

McDonald's (MCD) at 2.68% delivers top-quartile income for its industry, while Texas Roadhouse (TXRH) at 1.53% pays a more typical yield — both are credible income propositions, MCD the richer one.

MCD

Consumer Services industry group

2.68%

Max
4.10%
MCD
2.68%
Q3
1.82%
Median
0.00%
Q1
0.00%
Min
0.00%

TXRH

Consumer Services industry group

1.53%

Max
4.10%
Q3
1.82%
TXRH
1.53%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both McDonald's (MCD) at 58.86% and Texas Roadhouse (TXRH) at 46.07% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

MCD

Consumer Services industry group

58.86%

Max
89.80%
MCD
58.86%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%

TXRH

Consumer Services industry group

46.07%

Max
89.80%
TXRH
46.07%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
Dividend Yield (TTM)2.68%1.53%
Dividend Payout Ratio (TTM)58.86%46.07%

Valuation

P/E Ratio (TTM)

Both McDonald's (MCD) at 21.88 and Texas Roadhouse (TXRH) at 28.91 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

MCD

Consumer Services industry group

21.88

Max
71.70
Q3
37.12
MCD
21.88
Median
21.88
Q1
13.00
Min
5.72

TXRH

Consumer Services industry group

28.91

Max
71.70
Q3
37.12
TXRH
28.91
Median
21.88
Q1
13.00
Min
5.72
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

Texas Roadhouse (TXRH) at 1.90 prices around its industry’s typical P/S ratio, while McDonald's (MCD) at 7.02 clears its benchmark range — MCD looks notably rich on sales.

MCD

Consumer Services industry group

7.02

MCD
7.02
Max
6.40
Q3
3.01
Median
1.54
Q1
0.74
Min
0.08

TXRH

Consumer Services industry group

1.90

Max
6.40
Q3
3.01
TXRH
1.90
Median
1.54
Q1
0.74
Min
0.08
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

McDonald's (MCD) reports a negative P/B ratio of -191.23, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Texas Roadhouse (TXRH) reports 7.59, ranking against industry peers normally.

MCD

Consumer Services industry group

-191.23

Max
12.02
Q3
5.58
Median
2.37
Q1
1.09
Min
-4.51
MCD
-191.23

TXRH

Consumer Services industry group

7.59

Max
12.02
TXRH
7.59
Q3
5.58
Median
2.37
Q1
1.09
Min
-4.51
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McDonald's (MCD) vs. Texas Roadhouse (TXRH): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for McDonald's (MCD) and Texas Roadhouse (TXRH)
MetricMCDTXRH
P/E Ratio (TTM)21.8828.91
P/S Ratio (TTM)7.021.90
P/B Ratio (MRQ)-191.237.59
Free Cash Flow Yield (TTM)--2.20%