MCD - Better Buy: McDonald's vs. Papa John's
Choosing between consumer discretionary stocks such as McDonald's (NYSE: MCD) and Papa John's International (NASDAQ: PZZA) involves more than discerning between consumer tastes. On the surface, one is a restaurant that has long operated in nearly every corner of the world. The other serves takeout in North America and internationally on a more limited basis.
But a deeper look at both companies reveals more than meets the eye. Choosing between these two stocks involves not only an understanding of financials but, more importantly, a grasp of two businesses that profoundly differ on fundamental levels.
McDonald's and Papa John's are not as related as some might think. Yes, both are restaurants with an extensive takeout business.