NNN vs MCD

For growth investors, NNN REIT, Inc.

(NNN) is the stronger pick with 6. 6% revenue growth year-over-year, versus 1. 7% for McDonald's Corporation (MCD). NNN REIT, Inc. (NNN) offers the better valuation at 21. 5x trailing P/E (21. 6x forward), making it the more compelling value choice. Analysts rate McDonald's Corporation (MCD) a "Buy" — based on 62 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, NNN REIT, Inc.

(NNN) is the cheapest at 21. 5x versus McDonald's Corporation at 25. 0x. On forward P/E, McDonald's Corporation is actually cheaper at 21. 6x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NNN REIT, Inc. wins at 1. 94x versus McDonald's Corporation's 2. 83x — a reasonable growth-adjusted valuation.

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

8%, compared to +18. 5% for NNN REIT, Inc. (NNN). Over 10 years, the gap is even starker: MCD returned +161. 9% versus NNN's +40. 6%. 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 NNN REIT, Inc. 's 0. 15β — meaning NNN is approximately 38% more volatile than MCD relative to the S&P 500.

By revenue growth (latest reported year), NNN REIT, Inc.

(NNN) is pulling ahead at 6. 6% versus 1. 7% for McDonald's Corporation (MCD). On earnings-per-share growth, the picture is similar: McDonald's Corporation grew EPS -1. 5% year-over-year, compared to -3. 7% for NNN REIT, Inc.. Over a 3-year CAGR, NNN leads at 6. 2% 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.

NNN REIT, Inc.

(NNN) is the more profitable company, earning 42. 1% net margin versus 31. 7% for McDonald's Corporation — meaning it keeps 42. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NNN leads at 61. 5% versus 45. 2% for MCD. 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, NNN REIT, Inc. (NNN) is the more undervalued stock at a PEG of 1. 94x versus McDonald's Corporation's 2. 83x. 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. 6x forward P/E versus 21. 6x for NNN REIT, Inc. — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCD: 23. 5% to $352. 25.

All stocks in this comparison pay dividends.

NNN REIT, Inc. (NNN) offers the highest yield at 5. 3%, versus 2. 4% for McDonald's Corporation (MCD).

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, +161. 9% 10Y return). Both have compounded well over 10 years (MCD: +161. 9%, NNN: +40. 6%), 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.

These companies operate in different sectors (NNN (Real Estate) and MCD (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: NNN is a small-cap income-oriented stock; MCD is a large-cap quality compounder stock. 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.