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McDonald's (MCD) Competitors

McDonald's logo
$290.89 +0.16 (+0.06%)
(As of 11/20/2024 ET)

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 better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, community ranking, media sentiment, profitability, risk, dividends, earnings and institutional ownership.

Starbucks has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Starbucks received 37 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.39% of users gave Starbucks an outperform vote while only 71.89% of users gave McDonald's an outperform vote.

CompanyUnderperformOutperform
StarbucksOutperform Votes
2106
76.39%
Underperform Votes
651
23.61%
McDonald'sOutperform Votes
2069
71.89%
Underperform Votes
809
28.11%

In the previous week, McDonald's had 20 more articles in the media than Starbucks. MarketBeat recorded 75 mentions for McDonald's and 55 mentions for Starbucks. Starbucks' average media sentiment score of 0.93 beat McDonald's' score of 0.75 indicating that Starbucks is being referred to more favorably in the media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Starbucks
33 Very Positive mention(s)
6 Positive mention(s)
12 Neutral mention(s)
1 Negative mention(s)
1 Very Negative mention(s)
Positive
McDonald's
46 Very Positive mention(s)
6 Positive mention(s)
8 Neutral mention(s)
7 Negative mention(s)
2 Very Negative mention(s)
Positive

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.

Company Net Margins Return on Equity Return on Assets
Starbucks10.40% -46.39% 12.54%
McDonald's 31.79%-175.42%15.61%

72.3% of Starbucks shares are held by institutional investors. Comparatively, 70.3% of McDonald's shares are held by institutional investors. 2.0% 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Starbucks currently has a consensus price target of $102.81, suggesting a potential upside of 4.63%. McDonald's has a consensus price target of $319.46, suggesting a potential upside of 9.82%. 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)
8 Hold rating(s)
17 Buy rating(s)
1 Strong Buy rating(s)
2.55
McDonald's
0 Sell rating(s)
12 Hold rating(s)
18 Buy rating(s)
0 Strong Buy rating(s)
2.60

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$36.18B3.08$3.76B$3.3129.69
McDonald's$25.94B8.04$8.47B$11.3925.54

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 2.4%. Starbucks pays out 73.7% of its earnings in the form of a dividend. McDonald's pays out 62.2% 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. 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.

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$208.46B$9.74B$23.30B$19.90B
Dividend Yield2.24%3.75%168.62%3.54%
P/E Ratio25.5429.90117.4342.67
Price / Sales8.042.526.5018.14
Price / Cash19.8021.4220.0217.85
Price / Book-44.828.786.245.60
Net Income$8.47B$320.83M$678.82M$985.93M
7 Day Performance-2.14%-2.39%-1.94%-0.19%
1 Month Performance-8.11%-4.03%-2.98%0.15%
1 Year Performance4.25%12.89%14.72%23.70%

McDonald's Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
MCD
McDonald's
4.7221 of 5 stars
$290.89
+0.1%
$319.46
+9.8%
+4.3%$208.46B$25.94B25.54150,000
SBUX
Starbucks
4.9222 of 5 stars
$98.26
-0.1%
$102.81
+4.6%
-5.8%$111.45B$36.18B29.69381,000Insider Trade
CMG
Chipotle Mexican Grill
4.8395 of 5 stars
$58.88
+0.3%
$65.27
+10.9%
+34.6%$80.23B$10.98B55.03116,068Short Interest ↓
YUM
Yum! Brands
4.5772 of 5 stars
$132.88
+0.6%
$145.94
+9.8%
+3.7%$36.88B$7.08B24.8435,000Insider Trade
DRI
Darden Restaurants
4.6693 of 5 stars
$162.59
+1.1%
$180.13
+10.8%
+5.6%$19.10B$11.39B18.75191,105Positive News
DPZ
Domino's Pizza
4.6558 of 5 stars
$438.97
-0.2%
$494.38
+12.6%
+19.1%$15.16B$4.48B26.9611,200Insider Trade
TXRH
Texas Roadhouse
4.1448 of 5 stars
$193.41
-0.1%
$189.00
-2.3%
+76.3%$12.92B$4.63B33.2391,000
EAT
Brinker International
4.0157 of 5 stars
$124.74
+2.1%
$86.45
-30.7%
+243.6%$5.54B$4.42B30.4268,852Analyst Revision
Positive News
WEN
Wendy's
4.5723 of 5 stars
$17.92
-0.6%
$20.36
+13.6%
-5.7%$3.65B$2.18B18.8615,300Analyst Forecast
Analyst Revision
CAKE
Cheesecake Factory
4.1655 of 5 stars
$46.63
+0.1%
$44.75
-4.0%
+42.5%$2.38B$3.54B17.7347,900Analyst Upgrade
PZZA
Papa Johns International
4.396 of 5 stars
$47.31
+0.3%
$60.82
+28.6%
-29.6%$1.54B$2.14B16.4813,200Ex-Dividend
Analyst Revision

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This page (NYSE:MCD) was last updated on 11/21/2024 by MarketBeat.com Staff
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