McDonald’s Corporation (MCD): A Leader, a Comeback Kid and Two Hungry Challengers in the Fast Food Sector

What’s remarkable about The Wendy’s Company (NASDAQ:WEN) is its ability to renovate its stores without increasing its expenses, which declined during the quarter. Company-operated restaurant margin rose year-on-year from 14.1% to 16.7%. Wendy’s ability to balance out costs by selling off its stores to franchisees, along with its return to profitability, are very positive growth signs. Investors appear to have taken notice as well, sending shares up 8% to an all-time high following its earnings announcement.

The Foolish Bottom Line

In these four companies, we see a slow and steady market leader, two younger and hungrier challengers, and a comeback kid.

Over the past twelve months, The Wendy’s Company (NASDAQ:WEN) has easily outperformed its industry peers, while McDonald’s Corporation (NYSE:MCD) has woefully underperformed its competitors as well as the market. Therefore, investors should focus on fast food restaurants with higher domestic exposure, healthier menus, and more upscale dining environments. These factors are changing how Americans perceive fast food, and older players like McDonald’s, Burger King Worldwide Inc (NYSE:BKW) and Yum! Brands, Inc. (NYSE:YUM) might need to roll with the punches to stay relevant.

Leo Sun has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill, McDonald’s, and Panera Bread. The Motley Fool owns shares of Chipotle Mexican Grill, McDonald’s, and Panera Bread.

The article A Leader, a Comeback Kid and Two Hungry Challengers in the Fast Food Sector originally appeared on Fool.com.

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