MCD
McDonald's Corporation
Restaurants
Market Cap$196.47B
5Y Perf.+27.2%
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Side-by-side financial analysisMCD
YUM
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Stock Comparison
MCD vs YUM
Revenue, margins, valuation, and 5-year total return — side by side.
YUM
Yum! Brands, Inc.
Restaurants
Market Cap$44.41B
5Y Perf.+52.3%
MCD vs YUM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | MCD | YUM |
|---|---|---|
| Industry | Restaurants | Restaurants |
| Market Cap | $196.47B | $44.41B |
| Revenue (TTM) | $27.70B | $8.80B |
| Net Income (TTM) | $8.79B | $3.44B |
| Gross Margin | 57.4% | 42.1% |
| Operating Margin | 46.0% | 49.5% |
| Forward P/E | 21.4x | 25.0x |
| Total Debt | $54.81B | $11.91B |
| Cash & Equiv. | $774M | $709M |
MCD vs YUM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
MCD
YUM
| Stock | Nov 20 | Nov 26 | Return |
|---|---|---|---|
| McDonald's Corporat… (MCD) | 100 | 127.2 | +27.2% |
| Yum! Brands, Inc. (YUM) | 100 | 152.3 | +52.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MCD vs YUM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: YUM leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. McDonald's Corporation is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
🥇YUM emerged as the overall leader. Track its performance:
MCD
McDonald's Corporation
The Income Pick
MCD is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 17 yrs, beta 0.05, yield 2.6%
- 194.2% 10Y total return vs YUM's 193.2%
- Lower volatility, beta 0.05, current ratio 0.95x
Best for: income & stability and long-term compounding
YUM
Yum! Brands, Inc.
The Growth Play
YUM carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 8.8%, EPS growth 6.5%, 3Y rev CAGR 6.3%
- 8.8% revenue growth vs MCD's 3.7%
- 39.1% margin vs MCD's 31.7%
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | YUM | 8.8% revenue growth vs MCD's 3.7% |
| Value | MCD | Lower P/E (21.4x vs 25.0x), PEG 1.57 vs 1.84 |
| Quality / Margins | YUM | 39.1% margin vs MCD's 31.7% |
| Stability / Safety | MCD | Beta 0.05 vs YUM's 0.10 |
| Dividends | MCD | 2.6% yield, 17-year raise streak, vs YUM's 1.8% |
| Momentum (1Y) | YUM | +11.2% vs MCD's -4.8% |
| Efficiency (ROA) | YUM | 40.7% ROA vs MCD's 14.6%, ROIC 48.1% vs 18.7% |
MCD vs YUM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
MCD vs YUM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMCDLAGGINGYUM
YUMYum! Brands, Inc.
2leads
MCDMcDonald's Corporation
2leads
6 Total Categories
CATEGORYLEADERvs YUMMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
MCD4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
YUM6/7
Total Returns1Y, 3Y, 5Y total returns with dividends
YUM5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
MCD2/2
Income & Cash Flow (Last 12 Months)
Evenly matched — MCD and YUM each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MCD is the larger business by revenue, generating $27.7B annually — 3.1x YUM's $8.8B. YUM is the more profitable business, keeping 39.1% of every revenue dollar as net income compared to MCD's 31.7%.
| Metric | MCDMcDonald's Corpor… | YUMYum! Brands, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $27.7B | $8.8B |
| EBITDAEarnings before interest/tax | $14.4B | $4.6B |
| Net IncomeAfter-tax profit | $8.8B | $3.4B |
| Free Cash FlowCash after capex | $7.8B | $1.6B |
| Gross MarginGross profit ÷ Revenue | +57.4% | +42.1% |
| Operating MarginEBIT ÷ Revenue | +46.0% | +49.5% |
| Net MarginNet income ÷ Revenue | +31.7% | +39.1% |
| FCF MarginFCF ÷ Revenue | +28.0% | +18.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +3.7% | +3.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +5.7% | +3.2% |
Evenly matched — MCD and YUM each lead in 3 of 6 comparable metrics.
Valuation Metrics
MCD leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 23.1x trailing earnings, MCD trades at a 20% valuation discount to YUM's 29.0x P/E. Adjusting for growth (PEG ratio), MCD offers better value at 1.70x vs YUM's 2.13x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | MCDMcDonald's Corpor… | YUMYum! Brands, Inc. |
|---|---|---|
| Market CapShares × price | $196.5B | $44.4B |
| Enterprise ValueMkt cap + debt − cash | $250.5B | $55.6B |
| Trailing P/EPrice ÷ TTM EPS | 23.14x | 28.98x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.39x | 25.03x |
| PEG RatioP/E ÷ EPS growth rate | 1.70x | 2.13x |
| EV / EBITDAEnterprise value multiple | 17.22x | 20.33x |
| Price / SalesMarket cap ÷ Revenue | 7.31x | 5.41x |
| Price / BookPrice ÷ Book value/share | — | — |
| Price / FCFMarket cap ÷ FCF | 27.34x | 27.10x |
MCD leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
YUM leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), MCD scores 7/9 vs YUM's 5/9, reflecting strong financial health.
| Metric | MCDMcDonald's Corpor… | YUMYum! Brands, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | — | — |
| ROA (TTM)Return on assets | +14.6% | +40.7% |
| ROICReturn on invested capital | +18.7% | +48.1% |
| ROCEReturn on capital employed | +23.3% | +41.7% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | — | — |
| Net DebtTotal debt minus cash | $54.0B | $11.2B |
| Cash & Equiv.Liquid assets | $774M | $709M |
| Total DebtShort + long-term debt | $54.8B | $11.9B |
| Interest CoverageEBIT ÷ Interest expense | 7.88x | 8.56x |
YUM leads this category, winning 6 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
YUM leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in YUM five years ago would be worth $13,794 today (with dividends reinvested), compared to $12,221 for MCD. Over the past 12 months, YUM leads with a +11.2% total return vs MCD's -4.8%. The 3-year compound annual growth rate (CAGR) favors YUM at 10.3% vs MCD's 3.5% — a key indicator of consistent wealth creation.
| Metric | MCDMcDonald's Corpor… | YUMYum! Brands, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -7.0% | +8.6% |
| 1-Year ReturnPast 12 months | -4.8% | +11.2% |
| 3-Year ReturnCumulative with dividends | +10.7% | +34.1% |
| 5-Year ReturnCumulative with dividends | +22.2% | +37.9% |
| 10-Year ReturnCumulative with dividends | +194.2% | +193.2% |
| CAGR (3Y)Annualised 3-year return | +3.5% | +10.3% |
YUM leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — MCD and YUM each lead in 1 of 2 comparable metrics.
Risk & Volatility
MCD is the less volatile stock with a 0.05 beta — it tends to amplify market swings less than YUM's 0.10 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. YUM currently trades 94.7% from its 52-week high vs MCD's 80.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MCDMcDonald's Corpor… | YUMYum! Brands, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.05x | 0.10x |
| 52-Week HighHighest price in past year | $341.75 | $170.14 |
| 52-Week LowLowest price in past year | $229.20 | $134.26 |
| % of 52W HighCurrent price vs 52-week peak | +80.9% | +94.7% |
| RSI (14)Momentum oscillator 0–100 | 75.8 | 77.1 |
| Avg Volume (50D)Average daily shares traded | 5.8M | 2.4M |
Evenly matched — MCD and YUM each lead in 1 of 2 comparable metrics.
Analyst Outlook
MCD leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates MCD as "Buy" and YUM as "Hold". Consensus price targets imply 6.2% upside for YUM (target: $171) vs 2.6% for MCD (target: $284). For income investors, MCD offers the higher dividend yield at 2.58% vs YUM's 1.76%.
| Metric | MCDMcDonald's Corpor… | YUMYum! Brands, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $283.58 | $171.13 |
| # AnalystsCovering analysts | 64 | 51 |
| Dividend YieldAnnual dividend ÷ price | +2.6% | +1.8% |
| Dividend StreakConsecutive years of raises | 17 | 8 |
| Dividend / ShareAnnual DPS | $7.14 | $2.84 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.0% | +1.2% |
MCD leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
MCD leads in 2 of 6 categories (Valuation Metrics, Analyst Outlook). YUM leads in 2 (Profitability & Efficiency, Total Returns). 2 tied.
Best OverallMcDonald's Corporation (MCD)Leads 2 of 6 categories
Custom Comparison: MCD vs YUM
Compare on any lens — Growth, Value, Income, or pick from 130+ individual metrics.
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MCD vs YUM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MCD or YUM a better buy right now?
For growth investors, Yum!
Brands, Inc. (YUM) is the stronger pick with 8. 8% revenue growth year-over-year, versus 3. 7% for McDonald's Corporation (MCD). McDonald's Corporation (MCD) offers the better valuation at 23. 1x trailing P/E (21. 4x forward), making it the more compelling value choice. Analysts rate McDonald's Corporation (MCD) a "Buy" — based on 64 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.
02Which has the better valuation — MCD or YUM?
On trailing P/E, McDonald's Corporation (MCD) is the cheapest at 23.
1x versus Yum! Brands, Inc. at 29. 0x. On forward P/E, McDonald's Corporation is actually cheaper at 21. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: McDonald's Corporation wins at 1. 57x versus Yum! Brands, Inc. 's 1. 84x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — MCD or YUM?
Over the past 5 years, Yum!
Brands, Inc. (YUM) delivered a total return of +37. 9%, compared to +22. 2% for McDonald's Corporation (MCD). Over 10 years, the gap is even starker: MCD returned +194. 2% versus YUM's +193. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MCD or YUM?
By beta (market sensitivity over 5 years), McDonald's Corporation (MCD) is the lower-risk stock at 0.
05β versus Yum! Brands, Inc. 's 0. 10β — meaning YUM is approximately 91% more volatile than MCD relative to the S&P 500.
05Which is growing faster — MCD or YUM?
By revenue growth (latest reported year), Yum!
Brands, Inc. (YUM) is pulling ahead at 8. 8% versus 3. 7% for McDonald's Corporation (MCD). On earnings-per-share growth, the picture is similar: Yum! Brands, Inc. grew EPS 6. 5% year-over-year, compared to 4. 9% for McDonald's Corporation. Over a 3-year CAGR, YUM leads at 6. 3% 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.
06Which has better profit margins — MCD or YUM?
McDonald's Corporation (MCD) is the more profitable company, earning 31.
9% net margin versus 19. 0% for Yum! Brands, Inc. — meaning it keeps 31. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCD leads at 46. 1% versus 30. 8% for YUM. At the gross margin level — before operating expenses — MCD leads at 57. 4%, 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.
07Is MCD or YUM more undervalued right now?
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, McDonald's Corporation (MCD) is the more undervalued stock at a PEG of 1. 57x versus Yum! Brands, Inc. 's 1. 84x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, McDonald's Corporation (MCD) trades at 21. 4x forward P/E versus 25. 0x for Yum! Brands, Inc. — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for YUM: 6. 2% to $171. 13.
08Which pays a better dividend — MCD or YUM?
All stocks in this comparison pay dividends.
McDonald's Corporation (MCD) offers the highest yield at 2. 6%, versus 1. 8% for Yum! Brands, Inc. (YUM).
09Is MCD or YUM better for a retirement portfolio?
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.
05), 2. 6% yield, +194. 2% 10Y return). Both have compounded well over 10 years (MCD: +194. 2%, YUM: +193. 2%), 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.
10What are the main differences between MCD and YUM?
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.
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