SBUX vs. MCD, CMG, YUM, DRI, DPZ, TXRH, EAT, WEN, CAKE, and PZZA
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 Papa Johns International (PZZA). These companies are all part of the "restaurants" industry.
Starbucks vs.
McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, community ranking, earnings, profitability, dividends, valuation, institutional ownership and media sentiment.
McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.2%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.9%. McDonald's pays out 62.2% of its earnings in the form of a dividend. Starbucks pays out 78.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. McDonald's has increased its dividend for 49 consecutive years and Starbucks has increased its dividend for 15 consecutive years.
70.3% of McDonald's shares are owned by institutional investors. Comparatively, 72.3% of Starbucks shares are owned by institutional investors. 0.2% of McDonald's shares are owned by company insiders. Comparatively, 0.1% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
McDonald's has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Starbucks received 27 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.25% of users gave Starbucks an outperform vote while only 71.93% of users gave McDonald's an outperform vote.
In the previous week, McDonald's had 8 more articles in the media than Starbucks. MarketBeat recorded 77 mentions for McDonald's and 69 mentions for Starbucks. McDonald's' average media sentiment score of 0.83 beat Starbucks' score of 0.80 indicating that McDonald's is being referred to more favorably in the media.
McDonald's has a net margin of 31.73% compared to Starbucks' net margin of 9.73%. Starbucks' return on equity of -44.97% beat McDonald's' return on equity.
McDonald's has higher earnings, but lower revenue than Starbucks. Starbucks is trading at a lower price-to-earnings ratio than McDonald's, indicating that it is currently the more affordable of the two stocks.
McDonald's presently has a consensus price target of $322.87, indicating a potential upside of 2.14%. Starbucks has a consensus price target of $104.68, indicating a potential upside of 22.45%. Given Starbucks' higher probable upside, analysts plainly believe Starbucks is more favorable than McDonald's.
Summary
McDonald's beats Starbucks on 13 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 4/15/2025 by MarketBeat.com Staff
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