MCD vs. DPZ, PEP, PZZA, SBUX, TSLA, WEN, CMG, QSR, YUM, and YUMC
Should you be buying McDonald's stock or one of its competitors? The main competitors of McDonald's include Domino's Pizza (DPZ), PepsiCo (PEP), Papa John's International (PZZA), Starbucks (SBUX), Tesla (TSLA), Wendy's (WEN), Chipotle Mexican Grill (CMG), Restaurant Brands International (QSR), Yum! Brands (YUM), and Yum China (YUMC).
McDonald's vs. Its Competitors
McDonald's (NYSE:MCD) and Domino's Pizza (NASDAQ:DPZ) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
McDonald's currently has a consensus target price of $325.14, indicating a potential upside of 6.43%. Domino's Pizza has a consensus target price of $490.78, indicating a potential upside of 8.57%. Given Domino's Pizza's stronger consensus rating and higher possible upside, analysts plainly believe Domino's Pizza is more favorable than McDonald's.
McDonald's has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Domino's Pizza has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
70.3% of McDonald's shares are owned by institutional investors. Comparatively, 94.6% of Domino's Pizza shares are owned by institutional investors. 0.3% of McDonald's shares are owned by insiders. Comparatively, 0.8% of Domino's Pizza shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
McDonald's pays an annual dividend of $7.08 per share and has a dividend yield of 2.3%. Domino's Pizza pays an annual dividend of $6.96 per share and has a dividend yield of 1.5%. McDonald's pays out 60.7% of its earnings in the form of a dividend. Domino's Pizza pays out 40.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. McDonald's has raised its dividend for 49 consecutive years and Domino's Pizza has raised its dividend for 12 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, McDonald's had 62 more articles in the media than Domino's Pizza. MarketBeat recorded 81 mentions for McDonald's and 19 mentions for Domino's Pizza. Domino's Pizza's average media sentiment score of 1.62 beat McDonald's' score of 1.15 indicating that Domino's Pizza is being referred to more favorably in the news media.
McDonald's has a net margin of 32.21% compared to Domino's Pizza's net margin of 12.49%. Domino's Pizza's return on equity of -15.09% beat McDonald's' return on equity.
McDonald's has higher revenue and earnings than Domino's Pizza. McDonald's is trading at a lower price-to-earnings ratio than Domino's Pizza, indicating that it is currently the more affordable of the two stocks.
Summary
Domino's Pizza beats McDonald's on 13 of the 20 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 MCD 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 NYSE 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.
McDonald's Competitors List
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This page (NYSE:MCD) was last updated on 9/15/2025 by MarketBeat.com Staff
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