Better Stock to Buy: Coca-Cola vs. McDonald's
Their businesses are growing, but a look at their stock prices over that past few months would indicate that investors have decided to ignore both McDonald's (NYSE: MCD) and Coca-Cola (NYSE: KO) stocks. The two Dow dividend giants didn't participate in the 2023 stock market rally, in fact, and trail the S 500's 18.8% performance by 10 and 26 percentage points, respectively, through early December.
They'll be back. Despite some short-term growth challenges, Coke and McDonald's are likely to continue setting annual earnings records well into the future. With that bright outlook in mind, let's look at which of the two stocks is a more attractive option for patient investors today.
Both companies managed to boost sales in a tough consumer spending environment, but Coke came out ahead in the growth arena. Revenue in the most recent quarter was up a robust 11% year over year, thanks to rising prices and increased sales volumes. It helps that the beverage titan owns several of the world's biggest soda brands and dozens of other hit products spread through niches such as sparkling waters, energy drinks, and teas. Coke's massive global infrastructure also makes it nearly impossible for rivals to challenge its market share.
Source Fool.com
