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McDonald's (MCD) Competitors

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$309.84 +3.06 (+1.00%)
Closing price 04/11/2025 03:59 PM Eastern
Extended Trading
$309.86 +0.02 (+0.01%)
As of 04/11/2025 07:58 PM 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 contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, media sentiment, community ranking, risk, profitability, valuation and earnings.

In the previous week, McDonald's had 15 more articles in the media than Starbucks. MarketBeat recorded 82 mentions for McDonald's and 67 mentions for Starbucks. Starbucks' average media sentiment score of 0.86 beat McDonald's' score of 0.67 indicating that Starbucks is being referred to more favorably in the media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Starbucks
34 Very Positive mention(s)
6 Positive mention(s)
11 Neutral mention(s)
9 Negative mention(s)
1 Very Negative mention(s)
Positive
McDonald's
43 Very Positive mention(s)
6 Positive mention(s)
22 Neutral mention(s)
9 Negative mention(s)
1 Very Negative mention(s)
Positive

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

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$36.15B2.68$3.76B$3.1027.56
McDonald's$25.92B8.54$8.22B$11.3927.20

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 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 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Starbucks presently has a consensus target price of $104.68, indicating a potential upside of 22.53%. McDonald's has a consensus target price of $322.87, indicating a potential upside of 4.20%. Given Starbucks' higher possible upside, research analysts plainly believe Starbucks is more favorable than McDonald's.

Company Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starbucks
2 Sell rating(s)
9 Hold rating(s)
17 Buy rating(s)
0 Strong Buy rating(s)
2.54
McDonald's
0 Sell rating(s)
9 Hold rating(s)
16 Buy rating(s)
1 Strong Buy rating(s)
2.69

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.

CompanyUnderperformOutperform
StarbucksOutperform Votes
2113
76.25%
Underperform Votes
658
23.75%
McDonald'sOutperform Votes
2086
71.93%
Underperform Votes
814
28.07%

Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.9%. 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.

Summary

Starbucks and McDonald's tied by winning 11 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$221.37B$8.77B$23.10B$18.30B
Dividend Yield2.36%5.24%170.22%4.23%
P/E Ratio27.2025.7821.6630.73
Price / Sales8.541.833.6925.97
Price / Cash22.9919.1719.4117.54
Price / Book-58.465.395.534.25
Net Income$8.22B$318.00M$781.29M$1.02B
7 Day Performance3.39%0.27%5.85%1.36%
1 Month Performance4.17%-6.30%-3.87%-6.18%
1 Year Performance15.88%-4.89%-1.76%-1.30%

McDonald's Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
MCD
McDonald's
3.9399 of 5 stars
$309.84
+1.0%
$322.87
+4.2%
N/A$221.37B$25.92B27.20150,000
SBUX
Starbucks
4.409 of 5 stars
$80.00
-2.6%
$105.12
+31.4%
N/A$91.08B$36.15B25.87402,000Analyst Upgrade
News Coverage
CMG
Chipotle Mexican Grill
4.3387 of 5 stars
$46.78
-1.1%
$66.10
+41.3%
N/A$63.40B$11.31B42.14105,000
YUM
Yum! Brands
3.8394 of 5 stars
$146.01
-1.2%
$151.60
+3.8%
N/A$40.75B$7.55B27.9736,000Analyst Forecast
DRI
Darden Restaurants
4.1725 of 5 stars
$190.76
-0.8%
$201.38
+5.6%
N/A$22.48B$11.76B21.98179,000Positive News
DPZ
Domino's Pizza
2.5857 of 5 stars
$441.31
-0.7%
$503.04
+14.0%
N/A$15.14B$4.71B27.1111,000Analyst Forecast
News Coverage
Positive News
TXRH
Texas Roadhouse
3.9981 of 5 stars
$155.71
-2.6%
$192.23
+23.5%
N/A$10.39B$5.37B24.1791,000News Coverage
Positive News
Gap Down
EAT
Brinker International
3.5963 of 5 stars
$138.22
+2.3%
$140.18
+1.4%
N/A$6.14B$4.83B23.9568,852Analyst Forecast
News Coverage
Positive News
Gap Down
WEN
Wendy's
4.782 of 5 stars
$13.23
-0.5%
$18.08
+36.7%
N/A$2.66B$2.25B13.9714,500Analyst Forecast
News Coverage
Gap Down
CAKE
Cheesecake Factory
4.3927 of 5 stars
$44.66
-2.2%
$52.13
+16.7%
N/A$2.32B$3.58B14.0247,900
PZZA
Papa Johns International
3.9857 of 5 stars
$35.01
-3.6%
$55.25
+57.8%
N/A$1.15B$2.06B12.2112,000Positive News
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This page (NYSE:MCD) was last updated on 4/13/2025 by MarketBeat.com Staff
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