Better Buy: McDonald's vs. Starbucks Stock

If you're a fan of stocks trading at discounts, you've likely taken notice of both McDonald's (NYSE: MCD) and (NASDAQ: SBUX) shares recently. The two successful restaurant operators have seen their stocks slump since August and are both down nearly 10% on the year. The S 500, in contrast, is up 13% so far in 2023.

That performance alone suggests that investors could enjoy solid returns by putting either company in their portfolio. There are some big differences in the businesses' operating trends and financial positions, though. So, which one is the better buy right now?

Both companies are increasing sales at a solid clip, with McDonald's boasting a slight edge on growth. The fast-food giant's comparable-store sales were up 12% this past quarter, marking only a modest slowdown from the prior quarter's 13% spike. Consumers are enjoying McDonald's improved service and its focus on value at a time when inflation is pinching many people's budgets.

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Source Fool.com