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McDonalds vs Shake Shake

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  • McDonalds vs Shake Shake

    Which one do you think is the better investment? With the IPO Shake Shack seems way overpriced to me, but I'm still new at this game. McDonalds seems like they are having a lot of trouble with new competition, but over the long term they have always seemed able to reinvent themselves. Do you think they can do it again, or is the future with the newcomers like Shake Shack?

  • #2
    Dont feed the troll.

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    • #3
      troll? I asked an opinion on a topic in the news?

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      • #4
        I would not invest in either right now, especially McDonalds.

        McD's is suffering from an identity crisis right now and they just announced that their CEO is stepping down. Who is going to replace him? Someone with a good track record outside McD's with fresh and new ideas....um No. They are promoting from within.
        Also outside of the US the worlds economy is currently slowing down (this is where McD's would most likely see sales growth) I would not buy into McD's as I dont see a reason to expect future growth, and I dont care where this stock has been.

        I would consider buying SHAK in the future after the IPO buzz has settled, a few earnings reports have come in, and after the restriction to sell SHAK IPO shares has lifted. I wouldnt be surprised to see this one drop into the mid to low 30's in the next few weeks.
        I have never been to a Shake Shack so I dont really see what all the buzz is about. If you absolutely love the place and think its gonna grow like mad then I am not opposed to investing in the stock with say 10% or less of your portolios money.

        Recently I have been putting money into cyber security funds/stocks. Here you can find increasing revenue growth and I anticipate more.
        I am also looking at energy transports as they are beaten down with low oil prices, but they have long term contracts so the stocks should rebound strong with any oil recovery and they pay good dividends while you wait.

        I am a firm believer in dont buy any stocks or funds you cant give several good reasons explaining why you bought it.

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        • #5
          Neither. There are plenty of other investments out there that you could invest in.

          Oil and oil service stocks are starting to look attractive. A few retail stocks are as well.
          Brian

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          • #6
            McDonalds is one that I dollar cost average into at my Loyal3 account (no fees to buy or sell). It's been kind of a wishy washy going nowhere stock for a bit of time now, but I have very little doubt that 30 years down the road people will still be grabbing their Big Macs. And it pays a really decent Dividend rate currently.

            I don't know anything about Shake Shack other than I've glimpsed at the headlines with the recent IPO. It isn't the type of stock purchase that I'm interested in starting up at the moment. I've never been to that particular restaurant and I'm just not familiar with the business.

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            • #7
              this is a bit like comparing apples to oranges.
              a very small apple to a great big humongous orange that has dominated the industry for decades.

              sure, shake shack might have more room to grow, but also it might just fizzle and die.
              i havent really looked at either of the companies, but what bigdaddybus said is something to take to heart.

              JulieAlbright also raised good points about mcdonalds being a solid earner, as it is a big company, i don't think large changes are to be expected rapidly, but it is still a solid pick as it will probably not be going down very fast either.

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