© Reuters. McDonald’s vs. Domino’s Pizza: Which Restaurant Stock is a Better Buy?
A robust vaccination drive and increased adoption of tech solutions for business operations we think make popular restaurant chains McDonald’s (MCD) and Domino’s (DPZ) well-positioned to capitalize on the rising consumer spending. So, let’s discuss which of these stocks is a better buy now.McDonald’s Corporation (NYSE:) operates and franchises McDonald’s restaurants worldwide. It serves mainly locally relevant menus of fast-food, soft drinks and other beverages. The company operates through three segments—U.S., international operated markets, and international developmental licensed markets. As of December 31, 2020, the company operated 39,198 restaurants.
Domino’s Pizza, Inc. (NYSE:) operates a network of company-owned and franchise Domino’s Pizza stores internationally. In addition to a wide range of pizza styles and toppings, DPZ serves oven-baked sandwiches, pasta, bread side items, desserts and soft drinks. The company operates through three segments—U.S. stores, international franchise, and supply chain. As of January 3, 2021, it operated approximately 17,600 stores.
Outdoor fast-food joints and restaurants are currently seeing increasing foot traffic as people re-engage with outdoor activities after more than a year of social distancing. Furthermore, restaurants are rapidly adopting the latest operational technology, such as contactless ordering and QR menus to enhance efficiency and customer satisfaction. The global quick service restaurant market is expected to grow at a 5.1% CAGR over the next five years to hit $815.60 billion by 2026.
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