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.

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