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McDonald's (MCD) Competitors

McDonald's logo
$292.68 +2.45 (+0.84%)
(As of 12/20/2024 05:45 PM 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 stock? We will compare the two businesses based on the strength of their analyst recommendations, community ranking, profitability, earnings, dividends, media sentiment, valuation, risk and institutional ownership.

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%

Starbucks received 38 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.40% of users gave Starbucks an outperform vote while only 71.89% of users gave McDonald's an outperform vote.

CompanyUnderperformOutperform
StarbucksOutperform Votes
2107
76.40%
Underperform Votes
651
23.60%
McDonald'sOutperform Votes
2069
71.89%
Underperform Votes
809
28.11%

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

Starbucks presently has a consensus target price of $103.77, indicating a potential upside of 17.96%. McDonald's has a consensus target price of $320.65, indicating a potential upside of 9.56%. Given Starbucks' higher possible upside, equities analysts plainly believe Starbucks is more favorable than McDonald's.

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)
11 Hold rating(s)
17 Buy rating(s)
0 Strong Buy rating(s)
2.61

In the previous week, Starbucks had 19 more articles in the media than McDonald's. MarketBeat recorded 51 mentions for Starbucks and 32 mentions for McDonald's. McDonald's' average media sentiment score of 0.33 beat Starbucks' score of 0.24 indicating that McDonald's is being referred to more favorably in the news media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Starbucks
8 Very Positive mention(s)
8 Positive mention(s)
12 Neutral mention(s)
17 Negative mention(s)
6 Very Negative mention(s)
Neutral
McDonald's
3 Very Positive mention(s)
5 Positive mention(s)
16 Neutral mention(s)
6 Negative mention(s)
2 Very Negative mention(s)
Neutral

Starbucks has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

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$36.18B2.76$3.76B$3.3126.58
McDonald's$25.94B8.09$8.47B$11.3925.70

Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.8%. 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. McDonald's has increased its dividend for 49 consecutive years.

Summary

Starbucks beats McDonald's on 12 of the 21 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$209.74B$9.27B$24.51B$19.19B
Dividend Yield2.44%3.75%167.12%3.61%
P/E Ratio25.7028.77108.9941.30
Price / Sales8.092.213.1317.58
Price / Cash20.0321.3421.7821.28
Price / Book-45.108.945.425.32
Net Income$8.47B$317.55M$676.04M$989.88M
7 Day Performance-1.32%-1.57%-2.92%-3.54%
1 Month Performance1.51%-0.67%0.51%-3.68%
1 Year Performance0.44%2.11%9.02%12.14%

McDonald's Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
MCD
McDonald's
4.1099 of 5 stars
$292.68
+0.8%
$320.65
+9.6%
+1.3%$209.74B$25.94B25.70150,000High Trading Volume
SBUX
Starbucks
4.6391 of 5 stars
$94.23
-3.3%
$103.77
+10.1%
-7.1%$106.84B$36.18B29.43361,000
CMG
Chipotle Mexican Grill
4.3874 of 5 stars
$64.92
+0.5%
$66.07
+1.8%
+33.7%$88.46B$10.98B60.84116,068Analyst Forecast
YUM
Yum! Brands
4.5216 of 5 stars
$136.30
-0.5%
$145.94
+7.1%
+2.6%$38.04B$7.08B25.6135,000Insider Trade
DRI
Darden Restaurants
4.4037 of 5 stars
$168.56
+1.1%
$180.46
+7.1%
+15.7%$19.81B$11.42B19.23191,105Earnings Report
Dividend Announcement
Analyst Forecast
Analyst Revision
News Coverage
DPZ
Domino's Pizza
4.7384 of 5 stars
$451.56
-0.4%
$495.76
+9.8%
+5.7%$15.59B$4.67B27.8411,200
TXRH
Texas Roadhouse
3.5781 of 5 stars
$187.22
+0.2%
$190.09
+1.5%
+53.3%$12.49B$5.10B32.1191,000Analyst Forecast
Analyst Revision
Positive News
EAT
Brinker International
3.6962 of 5 stars
$131.44
+2.8%
$91.38
-30.5%
+224.8%$5.84B$4.42B31.1868,852Analyst Upgrade
Positive News
WEN
Wendy's
4.2387 of 5 stars
$17.03
-0.5%
$20.36
+19.5%
-16.1%$3.47B$2.18B18.0115,300
CAKE
Cheesecake Factory
4.26 of 5 stars
$51.13
+2.5%
$47.15
-7.8%
+39.4%$2.61B$3.54B19.1447,900News Coverage
PZZA
Papa Johns International
4.2782 of 5 stars
$43.28
-3.4%
$60.82
+40.5%
-46.4%$1.41B$2.14B15.6113,200

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This page (NYSE:MCD) was last updated on 12/21/2024 by MarketBeat.com Staff
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