Better Buy: McDonalds vs. PepsiCo
McDonald's (NYSE: MCD) and PepsiCo (NASDAQ: PEP) are two iconic businesses that are recognized globally. Both face difficulties caused by the coronavirus pandemic, and are looking forward to a time when world economies return to normalcy.
During the pandemic, snack and beverage maker PepsiCo was helped by its portfolio of products. Increases in sales in its snack business helped offset some decreases in its beverage business. Meanwhile, McDonald's is enduring decreasing sales as many of its locations were restricted from allowing customers to dine in. The restaurant chain's saving grace was its drive-thru locations and its quick pivot to increase delivery capabilities.
Let's compare the profitability of each business and then look at their price multiples to determine which is a better buy.
Source Fool.com
