Summer Stock Challenge: Growth Vs. Income - SBUX vs. DPZ

Published: July 17, 2023, 8:28 p.m.

Welcome to our 7investing\xa0Growth vs Income Summer Stock Challenge!\xa0We are on a quest to find the best current stock opportunity for investors.

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All month, we\u2019re pairing popular \u201cgrowth\u201d and \u201cincome\u201d stocks up in head-to-head matchups \u2014 to ultimately determine which stock will provide the greatest upcoming five-year return. We\u2019ve included voting polls within this article:\xa0please help us determine which of these stocks represents the better current opportunity for investors!

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To have all our our analysis and the official voting results sent directly to your Inbox, click below to join our Summer Stock Challenge email list:

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In this \u201cIncome Style, Round 1, Matchup 1\u201d bracket, our #2 ranked global coffeehouse\xa0Starbucks\xa0(Nasdaq: SBUX) is paired up against #7-ranked pizza chain\xa0Domino\u2019s Pizza\xa0(NYSE: DPZ).

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Both of these companies serve hundreds of millions of people all across the world. Yet today\u2019s matchup isn\u2019t about who serves the tastier food; it\u2019s about who will serve the greater return for investors. Starbucks owns half of its locations, while Domino\u2019s is almost entirely franchises. These two different approaches to the business structure could be the factor that determines their ultimate returns.

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What do you think? When looking over the next five years, which of these two companies will prove to be the better investment?

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