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McDonald's (MCD) Competitors

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$305.58 +2.53 (+0.83%)
As of 11:50 AM Eastern
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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 investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, media sentiment, community ranking, risk, analyst recommendations, earnings and institutional ownership.

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 company insiders. Comparatively, 0.2% of McDonald's shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

In the previous week, McDonald's had 46 more articles in the media than Starbucks. MarketBeat recorded 112 mentions for McDonald's and 66 mentions for Starbucks. Starbucks' average media sentiment score of 1.11 beat McDonald's' score of 0.92 indicating that Starbucks is being referred to more favorably in the media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Starbucks
49 Very Positive mention(s)
1 Positive mention(s)
11 Neutral mention(s)
2 Negative mention(s)
1 Very Negative mention(s)
Positive
McDonald's
76 Very Positive mention(s)
7 Positive mention(s)
16 Neutral mention(s)
2 Negative mention(s)
8 Very Negative mention(s)
Positive

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.

Company Net Margins Return on Equity Return on Assets
Starbucks9.73% -44.97% 11.47%
McDonald's 31.73%-181.63%15.48%

Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.2%. 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 raised its dividend for 15 consecutive years and McDonald's has raised its dividend for 49 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Starbucks currently has a consensus target price of $105.33, suggesting a potential downside of 7.06%. McDonald's has a consensus target price of $323.61, suggesting a potential upside of 6.84%. Given McDonald's' stronger consensus rating and higher probable upside, analysts plainly believe McDonald's is more favorable than Starbucks.

Company Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starbucks
3 Sell rating(s)
6 Hold rating(s)
17 Buy rating(s)
1 Strong Buy rating(s)
2.59
McDonald's
0 Sell rating(s)
10 Hold rating(s)
16 Buy rating(s)
0 Strong Buy rating(s)
2.62

Starbucks has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, McDonald's has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Starbucks received 29 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.37% of users gave Starbucks an outperform vote while only 71.92% of users gave McDonald's an outperform vote.

CompanyUnderperformOutperform
StarbucksOutperform Votes
2111
76.37%
Underperform Votes
653
23.63%
McDonald'sOutperform Votes
2082
71.92%
Underperform Votes
813
28.08%

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.

CompanyGross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Starbucks$36.18B3.56$3.76B$3.1036.56
McDonald's$25.92B8.37$8.22B$11.3926.59

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.
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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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MCD vs. The Competition

MetricMcDonald'sEating places IndustryRetail SectorNYSE Exchange
Market Cap$216.38B$9.09B$26.57B$20.49B
Dividend Yield2.34%4.03%172.57%3.65%
P/E Ratio26.5921.6020.0229.27
Price / Sales8.372.293.2416.18
Price / Cash22.9019.5321.2120.85
Price / Book-57.156.425.964.99
Net Income$8.22B$318.05M$770.12M$1.02B
7 Day Performance-1.85%0.75%-1.43%0.77%
1 Month Performance7.09%12.06%0.70%0.45%
1 Year Performance3.04%9.86%10.95%16.41%

McDonald's Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
MCD
McDonald's
4.5299 of 5 stars
$305.58
+0.8%
$323.61
+5.9%
+3.5%$218.96B$25.92B26.83150,000Insider Trade
SBUX
Starbucks
4.5628 of 5 stars
$112.55
-0.4%
$105.33
-6.4%
+21.3%$127.85B$36.18B36.31361,000Analyst Revision
Positive News
CMG
Chipotle Mexican Grill
4.9277 of 5 stars
$57.06
-1.8%
$66.31
+16.2%
+2.6%$77.74B$11.31B51.39116,068Positive News
YUM
Yum! Brands
3.9045 of 5 stars
$147.80
-0.6%
$147.37
-0.3%
+12.8%$41.25B$7.55B28.3135,000
DRI
Darden Restaurants
4.2939 of 5 stars
$190.83
-1.4%
$192.52
+0.9%
+17.8%$22.36B$11.39B21.86191,105Positive News
DPZ
Domino's Pizza
2.9558 of 5 stars
$476.66
-0.7%
$502.33
+5.4%
+13.1%$16.46B$4.48B29.2811,200Analyst Forecast
TXRH
Texas Roadhouse
3.9182 of 5 stars
$171.70
+0.2%
$190.83
+11.1%
+16.6%$11.45B$4.63B29.5091,000Earnings Report
Analyst Forecast
Options Volume
News Coverage
EAT
Brinker International
4.016 of 5 stars
$158.55
-1.0%
$140.18
-11.6%
+240.1%$7.04B$4.42B27.4868,852Positive News
WEN
Wendy's
4.5623 of 5 stars
$14.30
-3.1%
$18.93
+32.4%
-15.2%$2.92B$2.18B15.0515,300Analyst Upgrade
High Trading Volume
CAKE
Cheesecake Factory
3.9001 of 5 stars
$53.34
+1.6%
$49.93
-6.4%
+58.1%$2.72B$3.44B20.2847,900Earnings Report
Dividend Announcement
Analyst Forecast
Analyst Revision
News Coverage
PZZA
Papa Johns International
3.8345 of 5 stars
$49.04
-4.4%
$55.67
+13.5%
-32.1%$1.60B$2.14B17.0913,200Upcoming Earnings
High Trading Volume

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This page (NYSE:MCD) was last updated on 2/21/2025 by MarketBeat.com Staff
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