Better Buy: McDonald's vs. Wendy's

I may or may not have a personal bias for Wendy's (NASDAQ: WEN) Baconator, but that holds no sway here. The reason I like Wendy's over McDonald's (NYSE: MCD) is for the momentum the former was gaining prior to the COVID-19 pandemic. Both companies have struggled to find consistent top-line growth over the last five years, but Wendy's was on to something last year. And, with a new push into breakfast, it has more potential for growth.

Through the first six months of the year, Wendy's has maintained a far more stable revenue stream. Total revenue was down 4.3% to $807.3 million, compared with McDonald's decrease of 19% to $8.48 billion in that same time frame.

Operating income during that time also favored Wendy's, which saw operating profits fall 25.5% to $109.4 million, compared with McDonald's decline of 39% to $2.65 billion.

Continue reading

Source Fool.com