Better Buy: McDonald's vs. Starbucks

Depending on how you measure it, McDonald's (NYSE: MCD) and Starbucks (NASDAQ: SBUX) are two of the three largest fast-food chains in the world (Subway is the other one). Having long ago reached a saturation point in the U.S., the two chains have moved on to grow profits in foreign markets.

But despite their similarities, they are fundamentally different businesses. Let's compare them to see which might offer the potential for higher shareholder returns.

McDonald's is somewhat ahead of Starbucks in expansion. It operates about 38,700 restaurants in 119 countries. That might leave investors wondering where else McDonald's can go. However, scaled-back plans still call for 350 net restaurant additions this year.

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Source Fool.com