MCD vs. SBUX, CMG, YUM, DRI, DPZ, TXRH, EAT, WEN, CAKE, and PZZA
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 Papa Johns International (PZZA). These companies are all part of the "restaurants" industry.
McDonald's vs.
Starbucks (NASDAQ:SBUX) and McDonald's (NYSE:MCD) 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 dividends, media sentiment, risk, valuation, institutional ownership, earnings, analyst recommendations, community ranking and profitability.
72.3% of Starbucks shares are owned by institutional investors. Comparatively, 70.3% of McDonald's shares are owned by institutional investors. 0.1% of Starbucks shares are owned by insiders. Comparatively, 0.2% of McDonald's shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
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.
In the previous week, McDonald's had 29 more articles in the media than Starbucks. MarketBeat recorded 93 mentions for McDonald's and 64 mentions for Starbucks. Starbucks' average media sentiment score of 1.24 beat McDonald's' score of 0.75 indicating that Starbucks is being referred to more favorably in the media.
Starbucks currently has a consensus target price of $106.12, indicating a potential upside of 9.32%. McDonald's has a consensus target price of $323.39, indicating a potential upside of 6.01%. Given Starbucks' higher possible upside, analysts plainly believe Starbucks is more favorable than McDonald's.
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.
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 has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
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.
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 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.
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This page (NYSE:MCD) was last updated on 3/24/2025 by MarketBeat.com Staff
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