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McDonald's vs. Monster Beverage: One Is Growing Nearly 3 Times Faster. Which Is the Better Buy for 2027?

The Motley Fool | Nov 12, 2026 5:45 AM EST

McDonald's (NYSE:MCD) and Monster Beverage (NASDAQ:MNST) are two established consumer brands with vastly different growth trajectories. While McDonald's benefits from a highly profitable global franchise network, Monster Beverage is expanding at a considerably faster pace, with revenue growth nearly three times that of the fast-food giant in 2025. However, faster growth doesn't necessarily translate into better investment returns. McDonald's generates substantial free cash flow and trades at a lower earnings multiple, while Monster offers a debt-free balance sheet and greater growth potential at a premium valuation. Here's how the two companies compare and which looks like the better investment heading into 2027. McDonald's operates a highly profitable franchise-based business, with approximately 95% of its 45,356 restaurants operated by franchisees. These operators pay rent and royalties, allowing McDonald's to generate recurring revenue while shifting much of the day-to-day operating costs to franchisees. Continue reading

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