3 Stocks That Put McDonald's Returns to Shame

3 Stocks That Put McDonald's Returns to Shame

Not only has McDonald's (NYSE: MCD) redefined the restaurant industry over its long and successful history, but its stock has rewarded shareholders with both appreciation and a sound dividend. Times, however, are changing, so we asked three of our Foolish investors for stocks that have and will continue to put McDonald's to shame. The stocks they chose include cloud leader Microsoft (NASDAQ: MSFT), streaming video mainstay Netflix (NASDAQ: NFLX), and online search king Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).

Tim Brugger (Microsoft): Over the past 10 years, McDonald's stock has outperformed Microsoft's 190% to 157%, which raises the question: Why does the latter earn a spot on this list? Because Microsoft's 166% return over the past five years blows the doors off McDonald's 77%, and all signs point to Microsoft extending its stock performance lead over the fast-food giant for years to come.

Its software-as-a-service (SaaS) offerings delivered via the cloud have already become the foundation for future growth. With an annual run rate of over $18.9 billion as of last quarter -- which will likely climb to $20 billion plus this quarter -- Microsoft's cloud revenue is nearly unmatched in a market that virtually all pundits agree has limitless upside.

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Source: Fool.com