Quick vs McDonald's Which Is a Better Investment?

Quick and McDonald's are both leading fast-food chains in the market, each with a strong presence and a loyal customer base. Quick, based in Belgium, offers a diverse menu of burgers, sandwiches, and snacks, while McDonald's, a global powerhouse, is known for its iconic Big Macs and popular breakfast items. Both companies have experienced fluctuating stock prices in recent years, impacted by factors such as competition, consumer trends, and economic conditions. Investors must carefully consider the strengths and weaknesses of each company before making investment decisions.

Quick or McDonald's?

When comparing Quick and McDonald's, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Quick and McDonald's.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Quick has a dividend yield of 4.84%, while McDonald's has a dividend yield of 2.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Quick reports a 5-year dividend growth of 16.67% year and a payout ratio of 0.00%. On the other hand, McDonald's reports a 5-year dividend growth of 8.26% year and a payout ratio of 58.34%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Quick P/E ratio at 10.66 and McDonald's's P/E ratio at 25.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Quick P/B ratio is 2.20 while McDonald's's P/B ratio is -41.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Quick has seen a 5-year revenue growth of 0.55%, while McDonald's's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Quick's ROE at 22.19% and McDonald's's ROE at -168.78%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2140.00 for Quick and $295.75 for McDonald's. Over the past year, Quick's prices ranged from ¥1787.00 to ¥2635.00, with a yearly change of 47.45%. McDonald's's prices fluctuated between $243.53 and $317.90, with a yearly change of 30.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.