The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and industrials editor and analyst Brendan Byrnes discuss topics across the investing world.

In today's "Better Buy" series, Austin looks at two huge fast food chains: McDonald's and Yum! Brands. McDonalds was the Dow's best-performing stock of 2011, but many investors are worried about whether it'll repeat performance in 2012 now that it has reached more lofty multiples. Yum! Brands on the other hand, despite a large U.S. presence as well, is more a story about China's growth than anything else, for the company has grown at break-neck speed in China since it first started operating there. Both companies offer a dividend as well, although McDonald's edges out Yum! Brands sub-2% yield. Watch the video below to see which fast-food slinger is the better buy today.

Many people love McDonald's for their commitment to raising dividends and rewarding shareholders, but they aren't the only company that believes in a steady payout. If you're looking for more dividend dynamos, be sure to read our report: "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

At the time this article was published Austin Smith owns shares of McDonald's. Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of Chipotle Mexican Grill, Starbucks, and Yum! Brands. Motley Fool newsletter services recommend Chipotle Mexican Grill, McDonald's, Starbucks, and Yum! Brands. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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Raymond1938

McDonald's may be doing everything "right" but their coffee sucks. Who would go to McDonald's for a cup of coffee? Really?

June 08 2012 at 10:47 PM Report abuse rate up rate down Reply