Fast food is no longer just an occasional stop. For many of us, it’s become part of our weekly routine, or for some like me, the morning routine- and it says a lot about how consumer habits have changed. People may cut back in some areas, but convenience matters. A quick meal, a familiar face, or a good cup of coffee to grab during a busy day can become surprisingly sticky. For investors, that makes certain food and beverage brands worth watching as they’re not just selling products… they’re selling a routine. And that’s what makes McDonald’s and Starbucks worth putting side by side. Both are global brands that have found a place in consumers’ everyday lives, but the way they turn that demand into business results is not the same.
So, which name looks more compelling buy today?
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McDonald’s Corp (MCD)
The first is McDonald’s, easily one of the most recognizable restaurant brands in the world. It is best known for its chicken, sandwiches, burgers and arguably the best fast-food fries around. But aside from its menu, the company’s strength is consistency, with a franchise model that includes more than 45,000 locations worldwide.
McDonald’s stock recently closed at $293.59, and it’s down about 4% year to date.
Starbucks Corp. (SBUX)
Then we’ve got Starbucks, one of the most famous coffee brands in the world, with over 41,000 stores. Best known for its coffee, the company aims to serve its customers’ habits by offering lattes, espressos, and other drinks- effectively integrating its business into people’s daily routines.
Starbucks stock is up about 25% year to date and at the time of writing, it trades at about $105.
So far, starbucks looks like it’s got momentum, but does that make it the better buy, or is there more to this comparison?
Let’s find out.
Comparing McDonald’s vs Starbucks
McDonald’s is built around scale. The company has tens of thousands of franchisees that handle the day to day restaurant work while the McDonalds (corporate) collects rent,…
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