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 John's International (PZZA). These companies are all part of the "restaurants" industry.
Starbucks vs. Its Competitors
McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) 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 profitability, earnings, dividends, media sentiment, risk, valuation, institutional ownership and analyst recommendations.
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 insiders. Comparatively, 0.1% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
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.
McDonald's has a net margin of 31.75% compared to Starbucks' net margin of 8.61%. Starbucks' return on equity of -42.14% beat McDonald's' return on equity.
In the previous week, McDonald's had 26 more articles in the media than Starbucks. MarketBeat recorded 110 mentions for McDonald's and 84 mentions for Starbucks. Starbucks' average media sentiment score of 0.82 beat McDonald's' score of 0.77 indicating that Starbucks is being referred to more favorably in the news media.
McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.4%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.6%. 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.
McDonald's currently has a consensus price target of $321.79, suggesting a potential upside of 10.23%. Starbucks has a consensus price target of $98.76, suggesting a potential upside of 7.22%. Given McDonald's' higher possible upside, equities research analysts plainly believe McDonald's is more favorable than Starbucks.
McDonald's has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Summary
McDonald's beats Starbucks on 10 of the 19 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding SBUX 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
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This page (NASDAQ:SBUX) was last updated on 6/30/2025 by MarketBeat.com Staff
