Better Buy: Wingstop vs. McDonald's

Second-quarter results for McDonald's (NYSE: MCD) gave indications that consumers might be tightening their wallets a bit. At a time when things are starting to look a bit weaker for restaurant chains, it behooves investors to stick with the momentum. Right now, that is unquestionably Wingstop (NASDAQ: WING).

Perhaps the largest divide between these two companies is their sales growth. McDonald's is seeing a stagnation in sales, while Wingstop has seen very strong growth.

For McDonald's, total comparable-store sales declined 1% in the second quarter. Systemwide sales fell 1%, while consolidated revenue was flat. This follows a trend in which McDonald's comparable sales growth has been declining over the past few quarters.

Source Fool.com