Dunkin Brands Group Inc (DNKN), Starbucks Corporation (SBUX), McDonald’s Corporation (MCD): A Quick Service Restaurant Heading in Two Different Directions

Let’s not forget about convenience. Currently, only Dunkin’ Donuts and McDonald’s Corporation (NYSE:MCD) offer coffee via drive-through. However, Starbucks Corporation (NASDAQ:SBUX) is on the move, and it has the potential to steal market share because of this move. On the other hand, with a value consumer ruling the day, Starbucks isn’t the most resilient of the bunch. Thanks to its sheer size, McDonald’s is the most resilient.

Dunkin Brands Group Inc (NASDAQ:DNKN) and Starbucks Corporation (NASDAQ:SBUX) also don’t hold up to McDonald’s Corporation (NYSE:MCD) on a fundamental basis. Consider the table below.

Conclusion

As an investment, Dunkin’ Brands is caught somewhere between Starbucks and McDonald’s Corporation (NYSE:MCD). If you believe the consumer will rebound, then Starbucks is likely to offer the best investment opportunity. If you feel as though the economy is in disarray, and the consumer will continue to weaken, then you want a quality defensive name like McDonald’s.

As far as Dunkin’ Brands is concerned, it’s seeing increased growth in some areas and decelerating growth in others, making it a difficult story to decipher. Dunkin’ Brands has performed well since its IPO, and it has upside potential, but since capital preservation is always the number-one priority, I would favor McDonald’s Corporation (NYSE:MCD).

The article A Quick Service Restaurant Heading in Two Different Directions originally appeared on Fool.com and is written by Dan Moskowitz.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool recommends McDonald’s and Starbucks. The Motley Fool owns shares of McDonald’s and Starbucks.

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