SBUX vs. MCD, CMG, YUM, DRI, DPZ, TXRH, EAT, WEN, CAKE, 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), Wendy's (WEN), Cheesecake Factory (CAKE), 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 stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, media sentiment, analyst recommendations, institutional ownership, community ranking, earnings and dividends.
In the previous week, McDonald's had 113 more articles in the media than Starbucks. MarketBeat recorded 173 mentions for McDonald's and 60 mentions for Starbucks. Starbucks' average media sentiment score of 1.37 beat McDonald's' score of 0.62 indicating that Starbucks is being referred to more favorably in the news media.
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 beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.3%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.2%. McDonald's pays out 62.2% of its earnings in the form of a dividend. Starbucks pays out 78.7% 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 16 consecutive years and Starbucks has increased its dividend for 14 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
70.3% of McDonald's shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 0.2% 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.
McDonald's presently has a consensus target price of $323.61, suggesting a potential upside of 5.25%. Starbucks has a consensus target price of $105.33, suggesting a potential downside of 6.82%. Given McDonald's' stronger consensus rating and higher probable upside, research analysts plainly believe McDonald's is more favorable than Starbucks.
McDonald's has a net margin of 31.79% compared to Starbucks' net margin of 9.73%. Starbucks' return on equity of -44.97% beat McDonald's' return on equity.
Starbucks received 29 more outperform votes than McDonald's when rated by MarketBeat users. Likewise, 76.37% of users gave Starbucks an outperform vote while only 71.92% of users gave McDonald's an outperform vote.
Summary
McDonald's beats Starbucks on 12 of the 22 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 {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.
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This page (NASDAQ:SBUX) was last updated on 2/13/2025 by MarketBeat.com Staff
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