McDonald's (MCD 1.07%) and Restaurant Brands International (QSR 0.32%) are two top restaurant stocks you can buy and hold for the long term. The former focuses on one massive brand while the latter has multiple iconic names under its umbrella, including Tim Hortons and Burger King. Restaurant Brands offers a higher yield at 3.8% while McDonald's pays a more modest rate of 2.4%.

But there are other factors investors should consider when buying a dividend stock over the long haul. Below, I'll compare and contrast these stocks based on their dividend growth, payout ratios, and overall long-term prospects to see which one is the better option today.

McDonald's has a better track record for growing its dividend

If you're investing for the long term, you'll want some incentive for hanging on to a stock for years, perhaps even decades. McDonald's has been increasing its dividend for an impressive 48 straight years, and it looks on track to become a Dividend King by next year.

Restaurant Brands International was formed in 2014 when Burger King and Tim Hortons joined forces, and so it doesn't have the same illustrious track record as McDonald's. But both companies have been growing their dividends, and the chart below shows how quickly they have done so over the past five years.

MCD Dividend data by YCharts

McDonald's also has more room for further rate hikes

An important consideration for investors is to also look at how much room a company has to grow its dividend. This is where the payout ratio comes into play, which tells investors how much of its earnings a company is paying out as dividends. Here as well, McDonald's has a considerable edge, with its payout ratio being much lower at under 60% of earnings.

MCD Payout Ratio data by YCharts

While earnings fluctuate over time and impact the payout ratio, McDonald's has consistently been well below 100%, which is a good sign of consistency. In Restaurant Brands' case, the high payout ratio may be a cause for concern if it doesn't improve in the future.

Restaurant Brands may have better growth prospects

Investors also need to consider which company looks to be in a better position to continue growing. Restaurant Brands has a slight edge in this area, as it has been leveraging acquisitions in an effort to diversify its operations. The company has four significant brands in its portfolio, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. And last year it acquired Carrols Restaurant Group, which is the largest Burger King franchisee in the U.S. Acquisitions boosted its growth rate recently and could continue to lead to more revenue and profit growth in the future.

MCD Operating Revenue (Quarterly YoY Growth) data by YCharts

In 2024, Restaurant Brands reported comparable sales growth of 2.3%, while McDonald's comparable growth was a negative 0.1%. By continually pursuing acquisitions and ways to expand to new markets and have many different brands under its umbrella, I think Restaurant Brands may have more potential room to grow in the long run.

The better stock for dividend investors: McDonald's

If your primary aim is for a good dividend stock to buy and hold, it's hard to go wrong with McDonald's. Its sales may be sluggish now, but all it takes is a new menu item to get consumers excited again. While Restaurant Brands has been busy with acquisitions, that can sometimes do more harm than good for income investors because a high dividend can get in the way of a company that's focused primarily on growth.

Restaurant Brands is a cheaper stock, trading at 21 times its trailing earnings versus nearly 27 for McDonald's. And I think it may outperform the golden arches over the long haul since it has more avenues to grow. But if you want a solid dividend stock to buy and forget about, McDonald's is the clear winner, with a proven track record, modest payout ratio, and strong brand.