By Tim Parker

McDonald's (MCD) reported earnings Wednesday morning that beat analyst expectations. The stock was up 0.5% in late-day trading.

The company posted earnings of $1.38 per share on $6.95 billion in revenues.
Analysts expected earnings of $1.33 per share with fourth quarter sales of $6.89 billion. The results were lower from the previous quarter figures of $1.33 earnings per share and $7.15 billion in sales.

Global comp sales were up 0.1% versus analyst expectations of a decline of 0.3%. This was welcome news for the company. Analysts had largely written off the quarter, expecting the fast-food chain had fallen victim to a tepid and penny-pinching consumer that saved money as the fiscal cliff loomed.

According to the company's press release, CEO Don Thompson said, "We have a brand advantage in convenience, menu variety and value, a resilient business model, and the experience and alignment throughout the McDonald's System to navigate the current environment. For the near-term we expect top and bottom-line growth to remain pressured, with January's global comparable sales expected to be negative."

McDonald's remained downbeat on near-term economic conditions and cautious about growth in the coming quarters -- it believes that January same-store sales will be negative. On a more upbeat note, the release noted that the chain plans to open 1,500-1,600 new restaurants while reinvesting in existing stores. The slow environment, the release noted, is an opportune time to invest in new stores.

McDonald's has gained more than 10% in value since November despite challenging economic conditions, but is this "mature" fast food stock a better pick than a name like Chipotle (CMG)?

Sure, fast food aficionados will say that Chipotle is a different class of restaurant. Fast casual versus fast food, but regardless of the distinction, which is growing faster?

Chipotle began as a fast food darling. Its rapid multiple expansion indicated that investor excitement was through the roof and, as the chart indicates, outsized. Chipotle was priced for perfection and once it failed to meet those lofty expectations, the stock plunged.

After reaching a peak of $438, more than 55 times earnings, the big miss came in July.
Since that time, the stock is down more than 27% and now trades at 28 times forward earnings. This puts the company more in line with the industry average of fast food restaurant peers such as Panera (PNRA) and Starbucks (SBUX)

McDonald's stock  also had a tough 2012, but saw a more respectable loss of 8%. Its forward price-to-earnings ratio of 16 is lower than the industry average and pays a healthy 3.3% dividend.

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