Better Buy: McDonald's vs. Starbucks

Although both McDonald's (NYSE: MCD) and (NASDAQ: SBUX) have seen their share prices rise about 50% in the past five years, neither business has produced a better return than the S 500, which is up some 65% during the same time. This might be discouraging for investors.

However, not all hope is lost. These two companies possess favorable traits that might make them worthy investments over the long term. So, is McDonald's or Starbucks a better restaurant stock to buy? Let's look at each in greater detail before coming to a decision.

It's hardly a surprise that McDonald's would be thriving during a time of heightened economic uncertainty, high interest rates, and inflationary pressures. The fast-food burger chain crushed expectations by posting revenue of $6.7 billion and net income of $2.3 billion in the three-month period that ended Sept. 30.

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Source Fool.com