Burger King was no market star

The stock has lagged since the company went public in 2006. McDonald's is a different story.

By Kim Peterson Sep 2, 2010 1:46PM
fast food © Bananastock/JupiterimagesBurger King (BKC) has agreed to a $4 billion buyout and will be taken private (see the news on Market Dispatches).

It's worth noting that before shares jumped on rumor of the buyout, Burger King stock has been anything but royal. Shares of the fast food chain had been down about 6% from when it went public in May of 2006, The New York Times reported.

Compare that with the spectacular rise of McDonald's (MCD), whose shares have soared 111% during that same period.
What does McDonald's have that Burger King doesn't? A great international strategy, better pricing, innovation, cost controls, a message of quality ... the list is too long for this post. But clearly, McDonald's is firing on all cylinders, helped along by a stumbling economy and cost-conscious customers, while Burger King has flailed.

But the real stock loser in the business is Wendy's/Arby's Group (WEN), the Times reports. Its shares have plummeted 76% in that same period.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
280
280 rated 2
473
473 rated 3
639
639 rated 4
637
637 rated 5
662
662 rated 6
640
640 rated 7
498
498 rated 8
287
287 rated 9
121
121 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.