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McDonald's or Starbucks: Who wins? - 1 - investing strategy - MSN Money http://money.msn.com/investment-advice/mcdonalds-or-starbucks-who-...

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7/5/2011 4:35 PM ET | By Michael Brush, MSN Money

McDonald's or Starbucks: Who wins?
The purveyor of burgers is going upscale, treading on turf that the coffee titan has trolled for years. Which company will prevail? And what's the effect on consumers?
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Would you like some fries with that cinnamon dolce latte? OK, you probably won't hear that question any time soon. But in an odd twist in the evolutionary path of quick-serve eateries, McDonald's (MCD +1.62%, news) and Starbucks (SBUX -5.32%, news) are looking more alike every day. It's a trend that's going to continue, for a few simple reasons. With a McDonald's or a Starbucks just about everywhere you look, both companies are running out of room to roam. Starbucks was once expanding so rapidly that comedians joked it would be opening new coffee shops inside the bathrooms of existing outlets. The Seattle company plans to launch just 100 U.S. stores this year, though. And in the cutthroat world of fast food, McDonald's needs to distance itself from powerful rivals like Burger King and Subway.

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