Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

5

Better Buy: McDonald's vs Yum!

McDonald's (NYSE: MCD  ) has been a dud in 2012, while Yum! Brands (NYSE: YUM  ) has continued to outperform, but with that run has come a premium multiple. 

So which stock is a better buy today: the cheaper, underperforming McDonald's or the rosier and more expensive Yum! Brands?

Mickey D's has a more sustainable long-term model than just about any company in this space, and has a low price-to-earnings ratio right now. In a world of short-termism, it's easy to forget that the best investment is measured in years, not quarters, and when you take a look at McDonald's long-term trend, investors are getting a bargain, making McDonald's the better buy today.

One of the reasons is McDonald's superior dividend, which at 3.7% is higher than the broad market. As good as it is, there may be better income plays out there. You can uncover "The 3 Dow Stocks Dividend Investors Need" today in this new report. It's absolutely free, so just click here and get your copy today.


Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 30, 2012, at 9:35 AM, craigt111 wrote:

    YUM stock is now down (pre-open on 12-30) by $6.72 after announcing -4 corrected growth for China, for next year! What say all of you now? However, David C. Novak, CEO, announced "in advance of its Annual Investor Meeting, reconfirms its full-year 2012 EPS growth forecast of at least 13%, or $3.24 per share, excluding Special Items. Yum! also announces it expects to once again deliver at least 10% EPS growth in 2013, excluding Special Items, which would mark twelve consecutive years of meeting or exceeding this annual EPS growth target. " Is this a hold or a sell?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2122886, ~/Articles/ArticleHandler.aspx, 9/1/2015 10:31:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Austin Smith
TMFBWItime

A long-term investor looking to own the best businesses available.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:00 PM
MCD $93.47 Down -1.55 -1.63%
McDonald's CAPS Rating: ***
YUM $79.10 Down -0.67 -0.84%
Yum! Brands CAPS Rating: ****
ARCO $4.00 Down +0.00 +0.00%
Arcos Dorados CAPS Rating: ****
SBUX $53.50 Down -1.21 -2.21%
Starbucks CAPS Rating: ****