- Historically, Starbucks is trading at a very cheap earnings multiple at a trailing 12-month value of 19.27x, and is also paying out an attractive dividend yield.
- I believe McDonald's exit from Russia will greatly impact the business moving forward as that was a solid portion of its sales and reach in Eastern Europe.
- With mixtures of flourishing revenue growth, robust earnings, a strong dividend payout, and the stock down 38% YTD, investors must consider going long Starbucks.
- McDonald's stock has shown some downside resistance, only being down 12% YTD during a bear market and continues to trade at a premium on various metrics.
- Howard Schultz's return as CEO of Starbucks during the economic downturn could potentially be a mirror image of his 2008 return.
For further details see:
Restaurant Pair Trade: Buy Starbucks, Short McDonald's Amid The Bear Market