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.
Starbucks (NASDAQ:SBUX) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, community ranking, risk, media sentiment and profitability.
Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.5%. McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.3%. 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 pays out 62.2% of its earnings in the form of a dividend. Starbucks has increased its dividend for 15 consecutive years and McDonald's has increased its dividend for 49 consecutive years.
Starbucks has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.71, indicating that its share price is 29% 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.
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.
72.3% of Starbucks shares are held by institutional investors. Comparatively, 70.3% of McDonald's shares are held by institutional investors. 0.1% 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, large money managers and hedge funds believe a company is poised for long-term growth.
Starbucks received 29 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.39% of users gave Starbucks an outperform vote while only 71.94% of users gave McDonald's an outperform vote.
Starbucks currently has a consensus target price of $106.12, indicating a potential upside of 10.10%. McDonald's has a consensus target price of $323.39, indicating a potential upside of 5.61%. Given Starbucks' higher possible upside, analysts clearly believe Starbucks is more favorable than McDonald's.
In the previous week, McDonald's had 32 more articles in the media than Starbucks. MarketBeat recorded 98 mentions for McDonald's and 66 mentions for Starbucks. Starbucks' average media sentiment score of 1.22 beat McDonald's' score of 0.74 indicating that Starbucks is being referred to more favorably in the media.
Summary
Starbucks beats McDonald's on 11 of the 21 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.
Starbucks Competitors List
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This page (NASDAQ:SBUX) was last updated on 3/25/2025 by MarketBeat.com Staff
