Is Burger King the Emerging Play in the Burger Trade?

Burger King

has been doing well compared to its leading competitor McDonald's

despite the turmoil caused by a recent call for a raise in federal minimum pay by President Obama. As of this morning, Burger King's EPS climbed to 0.23 from Q3's 0.17. Another worthwhile increase is its large beat/misses ratio up to 53.33% from 13.33% in Q3, demonstrating positive momentum in BK's standing. As the world's largest fast food chain restaurant by sales, McDonald's took on the biggest toll in the Dow Jones Industrial Average. Obama's call to raise the federal minimum wage from $7.25 to $9 is driving McDonald's shares lower, closing at $93.56, a 1.3% decrease. A closer comparison of both restaurant chains may provide better evidence for the ultimate Burger trade winner. Looking at their potential growth, which investors value the most, BK looks to be having greater growth potential than MCD. Already having business in 110 countries, MCD falls behind BK in expansion potential. The faster growth rate in BK is what many economists call the Catch Up effect, starting at a lower point in development giving BK a bigger room for growth than the McDonald's. In terms of consistency, ratings have tend to favor the Big Mac. With its success in the dollar menu, McDonald's has been able to keep its business pace, resulting in sales that most chains would envy during the global economic downturn in 2008. MCD also leads BK in terms of dividends yield. A dividend may account for as much as half of the stock returns in the long run. McDonald's current 3.29% beats BK's 0.94%. In addition, McDonald's has been known to raise its dividend in the past. Finally, looking at both corporations' operating margin, McDonald's 30.33% surpasses BK's 20.8%. Just by its shear sizes, McDonald's has the advantage in getting lower prices for commodities. The recent short term fall of MCD's sharing has yet to make its comeback. As an investment, few stocks are able to beat McDonald's for the long haul. With that, Burger King still has a long way to go to the throne. McDonald's traded up 0.44 percent Friday to $93.97, while BK rose 3.56 percent to $17.17.