Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

McDonald’s Corporation (MCD), The Coca-Cola Company (KO): One For The Road

Of the two, though, McDonald’s Corporation (NYSE:MCD) seems to have the greater chance of turning things around over the long term. Coke can make inroads abroad, and it will likely continue to acquire smaller beverage companies and put the force of its enormous distribution network behind them. But Powerade or Odwalla is never going to have the draw of The Coca-Cola Company (NYSE:KO)’s namesake brand, and, outside of advertising, the company seems to have little power to change the domestic backlash against soda. Recent studies have shown obesity declining in preschoolers, a development some credit to lower consumption of sugary drinks. If that’s the direction the country is headed in, Coke will continue to lose sales.

McDonald’s, on the other hand, will always sell burgers, fries, and Coke products, but the company has more flexibility than its beverage-making twin. The fast-food chain consistently updates its menu to keep up with industry trends, such as adding its McCafe line to compete with Starbucks or providing healthier options like salads and McWraps to offer consumers healthier choices. Recently, McDonald’s has been revamping its U.S. stores, adding TVs, Wi-Fi, and a more modern, minimalist design similar to its fast-casual cousins, giving consumers another reason to visit.

After their recent woes, I’m not sure I’d bet on either of these traditional powerhouses to beat the market, but due to its ability to change its menu items and store design, McDonald’s should have a greater chance of success than Coke.

The article Why McDonald’s Is a Better Buy Than Coke originally appeared on and is written by Jeremy Bowman.

Fool contributor Jeremy Bowman owns shares of Chipotle Mexican Grill. The Motley Fool recommends Chipotle Mexican Grill, Coca-Cola, McDonald’s, Panera Bread, PepsiCo, and Starbucks. The Motley Fool owns shares of Chipotle Mexican Grill, McDonald’s, Panera Bread, PepsiCo, and Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.