SBUX vs. MCD, CMG, YUM, DRI, DPZ, TXRH, EAT, WEN, CAKE, and CBRL
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include McDonald's (MCD), Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Darden Restaurants (DRI), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Brinker International (EAT), Wendy's (WEN), Cheesecake Factory (CAKE), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "restaurants" industry.
Starbucks vs.
Starbucks (NASDAQ:SBUX) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, community ranking, profitability, analyst recommendations, media sentiment, dividends, institutional ownership, valuation and risk.
Starbucks received 36 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.40% of users gave Starbucks an outperform vote while only 71.91% of users gave McDonald's an outperform vote.
72.3% of Starbucks shares are held by institutional investors. Comparatively, 70.3% of McDonald's shares are held by institutional investors. 2.0% of Starbucks shares are held by company insiders. Comparatively, 0.2% of McDonald's shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
McDonald's has a net margin of 31.79% compared to Starbucks' net margin of 10.40%. Starbucks' return on equity of -46.39% beat McDonald's' return on equity.
Starbucks has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
McDonald's has lower revenue, but higher earnings than Starbucks. McDonald's is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.6%. McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.5%. Starbucks pays out 73.7% of its earnings in the form of a dividend. McDonald's pays out 62.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Starbucks has raised its dividend for 15 consecutive years and McDonald's has raised its dividend for 49 consecutive years.
In the previous week, McDonald's had 13 more articles in the media than Starbucks. MarketBeat recorded 68 mentions for McDonald's and 55 mentions for Starbucks. McDonald's' average media sentiment score of 0.65 beat Starbucks' score of 0.55 indicating that McDonald's is being referred to more favorably in the news media.
Starbucks presently has a consensus price target of $103.92, indicating a potential upside of 11.65%. McDonald's has a consensus price target of $321.39, indicating a potential upside of 13.75%. Given McDonald's' stronger consensus rating and higher possible upside, analysts plainly believe McDonald's is more favorable than Starbucks.
Summary
McDonald's beats Starbucks on 12 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NASDAQ:SBUX) was last updated on 1/16/2025 by MarketBeat.com Staff
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