Better Buy: McDonald's vs. Costco

2020 has been a great year for Costco (NASDAQ: COST). While much of the global economy came to a screeching halt, companies like Costco and Walmart (NYSE: WMT) that provide people with the essentials experienced skyrocketing sales in their basic categories. Restaurant chains were less lucky. Lockdowns required their dining rooms to close, and while many kept offering takeout and delivery, a lot of U.S. consumers were saving their disposable income for more pressing concerns.

But McDonald's (NYSE: MCD) too, has been displaying its might during the past few months, serving customers via its drive-thru and digital channels. While its sales were down, they're creeping back up as customers return to names they know and trust. In light of all this, is Costco or McDonald's a better buy today?

Costco's bread and butter is actually bread and butter, and other groceries, which it sells to its members. The chain differs from traditional supermarkets in three main ways. First, the company sells products in a range of other segments such as travel, clothing, and appliances, and some of its stores have optical labs and pharmacies. Second, the huge warehouse stores sell items primarily in bulk quantities. Third and most importantly, to shop there, people must pay the company an annual fee of $60 for a standard membership or $120 for an executive membership.

Source Fool.com