MCD vs. SBUX, CMG, YUM, DRI, DPZ, TXRH, EAT, WEN, CAKE, and CBRL
Should you be buying McDonald's stock or one of its competitors? The main competitors of McDonald's include Starbucks (SBUX), 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.
McDonald's vs.
McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, media sentiment, community ranking, institutional ownership, dividends, profitability and earnings.
McDonald's currently has a consensus target price of $321.39, suggesting a potential upside of 14.41%. Starbucks has a consensus target price of $103.92, suggesting a potential upside of 9.24%. Given McDonald's' stronger consensus rating and higher possible upside, equities analysts clearly believe McDonald's is more favorable than Starbucks.
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, 2.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
McDonald's has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
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.
In the previous week, McDonald's had 9 more articles in the media than Starbucks. MarketBeat recorded 79 mentions for McDonald's and 70 mentions for Starbucks. McDonald's' average media sentiment score of 0.99 beat Starbucks' score of 0.69 indicating that McDonald's is being referred to more favorably in the media.
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.
McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.5%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.6%. McDonald's pays out 62.2% of its earnings in the form of a dividend. Starbucks pays out 73.7% 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. McDonald's has increased its dividend for 49 consecutive years and Starbucks has increased its dividend for 15 consecutive years.
McDonald's has higher earnings, but lower revenue 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.
Summary
McDonald's beats Starbucks on 12 of the 22 factors compared between the two stocks.
Get McDonald's News Delivered to You Automatically
Sign up to receive the latest news and ratings for MCD and its competitors with MarketBeat's FREE daily newsletter.
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 NYSE 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.
McDonald's Competitors List
Related Companies and Tools
This page (NYSE:MCD) was last updated on 1/21/2025 by MarketBeat.com Staff
