SBUX vs. MCD, CMG, YUM, DRI, DPZ, TXRH, EAT, CAKE, WEN, and PZZA
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include McDonald's (MCD), Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Darden Restaurants (DRI), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Brinker International (EAT), Cheesecake Factory (CAKE), Wendy's (WEN), and Papa Johns International (PZZA). These companies are all part of the "restaurants" industry.
Starbucks vs.
McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) 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 risk, analyst recommendations, community ranking, dividends, valuation, profitability, earnings, institutional ownership and media sentiment.
McDonald's has a net margin of 31.73% compared to Starbucks' net margin of 9.73%. Starbucks' return on equity of -44.97% beat McDonald's' return on equity.
McDonald's currently has a consensus price target of $325.91, suggesting a potential upside of 1.97%. Starbucks has a consensus price target of $98.72, suggesting a potential upside of 15.34%. Given Starbucks' higher possible upside, analysts plainly believe Starbucks is more favorable than McDonald's.
McDonald's has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
In the previous week, Starbucks had 3 more articles in the media than McDonald's. MarketBeat recorded 77 mentions for Starbucks and 74 mentions for McDonald's. McDonald's' average media sentiment score of 0.74 beat Starbucks' score of 0.55 indicating that McDonald's is being referred to more favorably in the media.
McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.2%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.9%. McDonald's pays out 62.5% of its earnings in the form of a dividend. Starbucks pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. McDonald's has increased its dividend for 49 consecutive years and Starbucks has increased its dividend for 15 consecutive years.
70.3% of McDonald's shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 0.3% of McDonald's shares are held by company insiders. Comparatively, 0.1% of Starbucks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Starbucks received 33 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.18% of users gave Starbucks an outperform vote while only 71.85% of users gave McDonald's an outperform vote.
McDonald's has higher earnings, but lower revenue 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.
Summary
McDonald's beats Starbucks on 12 of the 21 factors compared between the two stocks.
Get Starbucks News Delivered to You Automatically
Sign up to receive the latest news and ratings for SBUX and its competitors with MarketBeat's FREE daily newsletter.
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.
Media Sentiment Over Time
This chart shows the average media sentiment of NASDAQ 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.
Starbucks Competitors List
Related Companies and Tools
This page (NASDAQ:SBUX) was last updated on 5/20/2025 by MarketBeat.com Staff
Buy SBUX Stock Free SBUX Stock Alerts