MCD vs. BKW: "World Famous Fries" or "Satisfries"?
Almost 30% of the American potato crop goes toward frozen fries. And we aren't the only country eating them; Belgium's per capita consumption of fries exceed's America's by a third. On the one hand, fries might increase the risk of type 2 diabetes (and other health problems) while on the other they promise reduced stress thanks to a rush of oxytocin. If you're considering going long on the french fry we offer up some analysis around valuation drivers, drivers of margin and growth expectations for some of the companies in the french fry business. We'll also give you an insight into their dividend quality for you to consider.
Investing in French Fries? Some stocks to consider
- Hoping to appeal to both our risk and reward systems, Burger King Worldwide Inc. (NYSE: BKW) has recently launched low(er) cal french fries that take a stab at McDonald's classic fries, offering you 40% less fat and 30% fewer calories. Same reward, less risk. At 20-30 cents more than the regular fries, many people could opt to keep their waistlines in check. Are you already sold?
Bonus! A free full focus report on Burger King covering everything from the sustainability of its returns to its earnings leverage.
- McDonald's Corporation (NYSE: MCD), is giving customers a no risk, low reward option. The chain has announced that it will offer salad, fruit or vegetables as an alternative to fries in their value meals. Of course, once you're in the store, even if you walked in determined to order the salad this time round, your brain could do a bait and switch on you. The chain does sell 9 million pounds of fries every day across the globe, after all.
- The Wendy's Company (NYSE: WEN) launched a new skin-on, sea-salt french fry in late 2010 which didn't pass muster with seriouseats.com; the thrillist too rated Wendy's fries as tenth best (lower in ranking than the other chains mentioned in this article).
- Sonic Corp's (NASDAQ: SONC) fries were rated the healthiest (this was before Burger King's recent launch) by WebMD; lowest both in calories and bad fats. It's worth noting that McDonald's fries come in second on both those counts right next to Sonic's.
How do these companies stack up against each other? Today we analyze these four companies relative to each other and highlight some of the fundamentals for McDonald's Corporation and Burger King Worldwide. We used CapitalCube's customize peer feature to customize our peer set.
Investors are expecting a Strategic Turnaround at Burger King
McDonald's has Tighter Control on Operating Costs
Superior Growth Expectations for Burger King
Dividends: The ketchup on the side
Last year we published a series of articles on McDonald's. If you're curious about how the company looked at that time, check these out: Is the McMeal going to hash it? (Fundamental Analysis), McMergers & Acquisitions (Likely Corporate Actions assessment), No Super Size options here (Dividend Quality) and MCD Earnings Quality Analysis.
Want to know even more on Burger King's fundamentals like the sustainability of its returns and its earnings leverage? This free report covers it all.
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