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STOCK COMPARISON

McDonald’s vs Texas Roadhouse: Fair Value & Quality

Both stocks run through our valuation models. Here is how McDonald’s (MCD) and Texas Roadhouse (TXRH) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees McDonald’s as the less overvalued of the two: McDonald’s trades at $260 versus a fair value of $149 (-43%), while Texas Roadhouse trades at $189 versus $105 (-45%).
McDonald’s
MCD · USD · Consumer Discretionary
-43%
upside to fair value
overvalued
Price$260
Fair Value$149
Quality69/100
Texas Roadhouse
TXRH · USD · Consumer Discretionary
-45%
upside to fair value
overvalued
Price$189
Fair Value$105
Quality60/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

McDonald’sTexas Roadhouse
Valuation
21.5×P/E (TTM)31.4×
7.11×P/S (TTM)2.14×
—P/B8.87×
15.8×EV/EBITDA18.3×
2.56×PEG2.43×
−42.6%Fair value upside−44.5%
2.8%Dividend yield1.5%
$7.26Dividend per share$2.79
Profitability
44%Operating margin9%
1.21×EBIT margin trend (5Y)8.60×
—Return on equity29%
14%Return on assets9%
Growth
9%Revenue growth (YoY)13%
5.1%Avg. growth/yr (3Y)13.5%
7.0%Avg. growth/yr (5Y)19.6%
+11.5%Value creation/yr+21.4%
Balance & size
7.8×Interest coverage (EBIT/interest)74.2×
—Debt / equity0.03×
$195BMarket cap$13B
healthyGrowth qualityhealthy

Texas Roadhouse leads: 6 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

McDonald’sof which business quality 65 · market factors 42 Texas Roadhouseof which business quality 61 · market factors 64
ProfitabilityMargins and returns on capital today
64
68
Quality GrowthAre margins and returns improving?
46
30
CashflowEarnings quality: real cash, not paper profit
76
48
Fin. StrengthBalance sheet, leverage, solvency risk
53
73
InvestmentDisciplined investing over empire-building
57
50
Low VolatilityCalm price path (market factor)
96
73
MomentumPrice trend over the last 3–12 months (market factor)
26
59
52W MomentumDistance to the 52-week high (market factor)
8
61
Net IssuanceBuybacks instead of dilution
91
89

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyMcDonald’sPrice $260Texas RoadhousePrice $189
DCF Models-55%below the price$117-26%below the price$140
Earnings-Based-61%below the price$102-56%below the price$82.68
Dividend Discount-62%below the price$98.39n/a
Multiples-13%close to the price$225-38%below the price$118
Asset-Basedn/a-92%below the price$14.89
Growth DCF-77%below the price$58.72-33%below the price$126
Economic Profit-56%below the price$113-59%below the price$77.23
Growth Earnings-19%below the price$209-32%below the price$128
Minimum-77%below the price$58.72-92%below the price$14.89
Maximum-13%close to the price$225-26%below the price$140
Median-56%below the price$113-38%below the price$118
Geometric mean-54%below the price$121-57%below the price$82.20

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

McDonald’s: 20 of 21 models see the stock below the current price.

Texas Roadhouse: 23 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

McDonald’s
Bear $98.03Fair Value $149Bull $233
$260 = current price (white tick)
Texas Roadhouse
Bear $76.58Fair Value $105Bull $167
$189 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

McDonald’s · Consumer Discretionary

Quality score69 · Top 25%
Fair value upside-43% · below median

Texas Roadhouse · Consumer Discretionary

Quality score60 · above median
Fair value upside-45% · below median

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees McDonald’s as the less overvalued of the two: McDonald’s trades at $260 versus a fair value of $149 (-43%), while Texas Roadhouse trades at $189 versus $105 (-45%).

McDonald’s has the higher quality score (69/100).

See the full analysis →
McDonald’s · Texas Roadhouse

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.