The article compares Starbucks (SBUX), McDonald's (MCD) and Yum! Brands (YUM) over the past six months. SBUX closed at $90.75 (down 6.9%), MCD at $235.23 (down 22.8%) and YUM at $144.82 (down 10.3%), and none beat the two benchmarks. All three report negative book value, which the article attributes to years of buybacks and dividends funded with borrowing, while franchising explains much of the gap in returns. Yum Brands posted a 22.69% return on assets and 12.20% revenue growth, McDonald's had a 46.49% operating margin versus 12.92% at Starbucks, and Starbucks' revenue fell 1.40% with a payout above 140% of earnings. Starbucks trades at 29.04 times forward earnings, the highest of the three, and the author views McDonald's as the most defensible on the numbers.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Starbucks (SBUX) vs McDonald’s (MCD) and Yum Brands (YUM): Which Restaurant Stock is a Better Buy?
Read the original on Yahoo Finance ↗
Get briefings and signals on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the morning, midday and evening briefing of each market and important news as it happens.