Better Buy: McDonald's vs Yum! (MCD, YUM)

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.

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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?

updated Moments ago Sponsored by:
	DOW	15,387.58	52.30	0.34%
	S&P 500	1,669.16	2.87	0.17%
	NASD	3,502.12	5.69	0.16%

YUM	$70.18		-0.28	-0.40%
Yum! Brands		CAPS Rating:

MCD	$102.14		+0.60	+0.59%
McDonald's		CAPS Rating:

SBUX	$64.25		+0.42	+0.66%
Starbucks		CAPS Rating:

ARCO	$15.32		-0.14	-0.91%
Arcos Dorados		CAPS Rating:

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Better Buy: McDonald's vs Yum!

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

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