Better Buy: McDonald's vs. Costco
For me, this one is a no-brainer. Costco (NASDAQ: COST) offers a demonstrated ability to grow that McDonald's (NYSE: MCD) has lacked. Whereas Costco has increased top-line sales consecutively for the last five years, McDonald's has relied on refranchising to drive higher earnings while sacrificing overall revenue potential.
Costco averaged 7.1% annual revenue growth over the last four years. Net income growth has been even more impressive, averaging 11.6% through that same time frame. Diluted earnings per share finished 2019 with a 16.5% increase to $8.26 per share.
Source Fool.com