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

The 7investing Podcast

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

All month, we’re pairing popular “growth” and “income” stocks up in head-to-head matchups — to ultimately determine which stock will provide the greatest upcoming five-year return. We’ve included voting polls within this article: please help us determine which of these stocks represents the better current opportunity for investors!

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:

In this “Income Style, Round 1, Matchup 1” bracket, our #2 ranked global coffeehouse Starbucks (Nasdaq: SBUX) is paired up against #7-ranked pizza chain Domino’s Pizza (NYSE: DPZ).

Both of these companies serve hundreds of millions of people all across the world. Yet today’s matchup isn’t about who serves the tastier food; it’s about who will serve the greater return for investors. Starbucks owns half of its locations, while Domino’s is almost entirely franchises. These two different approaches to the business structure could be the factor that determines their ultimate returns.

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