Better Buy: McDonald's vs. Yum China

McDonald's (NYSE: MCD) and Yum China (NYSE: YUMC) are two of the largest fast-food companies in the world. McDonald's operates and franchises more than 39,000 restaurants in over 100 countries. Yum China, which was spun off from Yum! Brands (NYSE: YUM) four years ago, operates and franchises about 10,000 restaurants across mainland China.

Most of McDonald's locations are franchised, while most of Yum China's locations are company-owned. The two companies also adopted different strategies in China: McDonald's sold a majority stake in its mainland China and Hong Kong businesses three years ago, while Yum split its entire Chinese segment into a stand-alone company.

McDonald's reduced exposure to China enabled it to dodge the initial COVID-19 outbreak in the country, which caused Yum China's sales to plummet. But Yum China's sales improved after China contained the pandemic, while McDonald's sales tumbled as the pandemic spread worldwide.

Source Fool.com