Key Points
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McDonald’s stock has declined approximately 22% year-to-date.
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Both McDonald’s and Burger King are implementing turnaround strategies amid tighter consumer spending and increased demand for value.
The crown of fast food currently belongs to Restaurant Brands International‘s (NYSE: QSR) Burger King. McDonald’s (NYSE: MCD) is working to avoid falling behind. In the second quarter of 2026, Burger King’s same-store sales in the U.S. increased by 8.5%, significantly outperforming its competitors, while McDonald’s grew just 0.8% in the same metric.
Burger King, similar to McDonald’s, is undergoing a turnaround. Through renovating existing locations and promoting its signature Whopper, Burger King’s efforts are showing results. Restaurant Brands reported a rise in earnings per share of over 12% in the second quarter of 2026.
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McDonald’s, however, has faced challenges in execution. The company cited an overabundance of new product launches as a reason for declining customer satisfaction and slower service times.
To reverse this trend, McDonald’s is betting on its “McDonald’s > NEXT” initiative. This four-pillar growth strategy aims to enhance the menu, strengthen customer relationships, boost operational efficiency, and redefine customer service. New offerings such as hand-breaded chicken sandwiches and specialty drinks are part of the effort to win back consumers.
While McDonald’s has the resources and brand recognition to stay competitive, the current strategy may not be the most effective. Burger King is streamlining its operations and focusing on its proven core products. McDonald’s appears to be overcomplicating its menu in an attempt to appeal to changing tastes, which could prove shortsighted.
McDonald’s still holds significant advantages, including its massive scale and global presence. However, the company could benefit from adopting some of Restaurant Brands’ focus on simplicity and core offerings. For investors choosing between the two, Burger King’s parent company presents a stronger opportunity at this time.
Is McDonald’s Stock Worth Buying Right Now?
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International and recommends the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool has a disclosure policy.
