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Better Buy: McDonald's vs. Dutch Bros


Fast food is a staple of modern life. Despite the industry being highly competitive, there always seems to be room for new entrants. That is, basically, what coffee chain Dutch Bros (NYSE: BROS) is. But the new players need to compete with older names, including industry giants like McDonald's (NYSE: MCD). Investors trying to choose between companies like Dutch Bros and McDonald's need to think carefully about what they want to own and what they are buying.

At one point in its history, McDonald's was a growth stock. That time has passed. Today, it is so large that it can't grow at a rapid clip. To put some numbers on that, the fast food burger chain has over 40,000 locations in around 100 countries around the world. Roughly 95% of those locations are franchised, so it doesn't actually run most of them, but the ubiquity of the brand and consistency of the food offered make the company a go-to restaurant globally.

Image source: Getty Images.

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Source Fool.com

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