Perhaps you will file this under things that only I find interesting, but this article details results from the Pew Research Center noting that 43% of people surveyed would rather live near McDonald's (NYSE: MCD) than Starbucks (NASDAQ: SBUX). Interesting statistic. My guess is that the biggest reason the Golden Arches is more popular is that it offers far more food at a far cheaper price.
What I find very interesting is the breakdown when Pew digs into the results. I'm not going to go through all of them right now (just follow the link to the article and check out the religion, lifestyle pace, and education sections especially - they are very interesting), but I want to look at two of the demographic breakdowns. The first is by income, where I found no surprise that MCD edged out SBUX in the under $30,000 demographic and the $30,000 - $49,000. I was a bit surprised by the $50,000 to $75,000 group, which leaned toward MCD as well. The Research Center notes that this is no surprise, as SBUX is seen as an indulgence - which makes sense. I wonder if this demographic breakdown was like this five years ago.
The next demographic that interests me is the regional breakdown. As the study notes, perhaps it is loyalty, but the West is the only region that would rather have a SBUX nearby than MCD. I would bet that as the economic downturn continues, this loyalty will be thrown out the window for the almighty buck.
Anyone who has read my work in the past knows that I prefer MCD stock to SBUX, but that doesn't mean MCD is without problems. The stock has pulled back to support at the $54 level after enjoying a run ending in the $64 region. Right now some may MCD bulls may be grimacing thanks to a potential bearish cross between the burgermeister's 10- and 20-week moving averages. If this pattern comes to fruition, it could signal an impending downtrend. However, history suggests that such periods of weakness are short lived and could precede another prosperous period for Ronald and the gang.











Reader Comments (Page 1 of 1)
2-23-2009 @ 5:29PM
Kent said...
Let's assume for the moment that I am told to buy a house sight-unseen. I'd choose the one near SBUX as their outlets are generally in upscale neighborhoods. MCD's are in and near shopping centers. Very rarely would you find a SBUX in poorer neighborhoods. When the economy deteriorates, MCD stock price rises. When good times return, I'll wager the moving average will decline.
2-24-2009 @ 7:48PM
pbyron said...
I have Starbucks everyday. McDonalds gets old easy and is only good for once in a while. Think of it that way. It’s simple.
2-25-2009 @ 5:41PM
r. richard fusilier de la claire said...
Lately McDonald's coffee has caught up with Starbuck's! in serving good coffee!
5-05-2009 @ 7:08PM
fuzzywzhe said...
Honestly, I'd rather live near a Star Bucks than a McDonald's, simply because although I hate yuppies, I hate obnoxious screaming kids with their families even more.
I don't go to either place, the only factor it boils down to is what sort of riff raff I want hanging around my place. Oh, and perhaps the stink of rotting grease putrefying out back might be part of my decision.