Not lovin’ it: McDonald’s beginning to lag behind competitors

McDonald’s has long been the unchallenged king of the fast food world, but is that stranglehold coming to a close? At least when it comes to the stock market, the answer could be “yes”.

As crazy as it sounds, McDonald’s (MCD) has underperformed compared to Wendy’s (WEN) and Burger King (BKW) in the last half year. Since last summer, Wendy’s stock has shot up while McDonald’s has dropped, and even Burger King has seen almost a 30 percent increase during that time.

Now, don’t forget that there are still almost three times as many McDonald’s locations as Burger King restaurants, and almost six times as many as there are Wendy’s locations. But that can be an advantage for Ronald McDonald’s younger brother and sister when it comes to the stock market, where growth is king.

And even so, McDonald’s quarterly earnings report was lackluster, which could be the beginning of a problem. And you can’t give McDonald’s a pass just based upon its size. Its rise in profits are forecasted at a fairly healthy 8% per year, but rival Yum! (YUM), which owns KFC, Taco Bell, and Pizza Hut, actually has more restaurants and is forecasted for a rise in profits of 11% per year.

It’s hard to imagine a world where McDonald’s isn’t the fast food king, but at least when it comes to the stock market, the change already appears to have started.