DPZ vs MCD

For growth investors, Domino's Pizza, Inc.

(DPZ) is the stronger pick with 5. 0% revenue growth year-over-year, versus 1. 7% for McDonald's Corporation (MCD). Domino's Pizza, Inc. (DPZ) offers the better valuation at 18. 5x trailing P/E (16. 8x forward), making it the more compelling value choice. Analysts rate Domino's Pizza, Inc. (DPZ) a "Buy" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Domino's Pizza, Inc.

(DPZ) is the cheapest at 18. 5x versus McDonald's Corporation at 24. 9x. On forward P/E, Domino's Pizza, Inc. is actually cheaper at 16. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Domino's Pizza, Inc. wins at 2. 33x versus McDonald's Corporation's 2. 82x.

Over the past 5 years, McDonald's Corporation (MCD) delivered a total return of +34.

4%, compared to -18. 2% for Domino's Pizza, Inc. (DPZ). Over 10 years, the gap is even starker: DPZ returned +204. 7% versus MCD's +158. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), McDonald's Corporation (MCD) is the lower-risk stock at 0.

11β versus Domino's Pizza, Inc. 's 0. 32β — meaning DPZ is approximately 189% more volatile than MCD relative to the S&P 500.

By revenue growth (latest reported year), Domino's Pizza, Inc.

(DPZ) is pulling ahead at 5. 0% versus 1. 7% for McDonald's Corporation (MCD). On earnings-per-share growth, the picture is similar: Domino's Pizza, Inc. grew EPS 4. 8% year-over-year, compared to -1. 5% for McDonald's Corporation. Over a 3-year CAGR, MCD leads at 3. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

McDonald's Corporation (MCD) is the more profitable company, earning 31.

7% net margin versus 12. 2% for Domino's Pizza, Inc. — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCD leads at 45. 2% versus 19. 3% for DPZ. At the gross margin level — before operating expenses — MCD leads at 56. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Domino's Pizza, Inc. (DPZ) is the more undervalued stock at a PEG of 2. 33x versus McDonald's Corporation's 2. 82x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Domino's Pizza, Inc. (DPZ) trades at 16. 8x forward P/E versus 21. 5x for McDonald's Corporation — 4. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DPZ: 31. 5% to $427. 06.

All stocks in this comparison pay dividends.

McDonald's Corporation (MCD) offers the highest yield at 2. 4%, versus 2. 1% for Domino's Pizza, Inc. (DPZ).

For long-horizon retirement investors, McDonald's Corporation (MCD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

11), 2. 4% yield, +158. 5% 10Y return). Both have compounded well over 10 years (MCD: +158. 5%, DPZ: +204. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.