McDonald's Competitors

Starbucks (NASDAQ:SBUX) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

67.3% of Starbucks shares are owned by institutional investors. Comparatively, 66.3% of McDonald's shares are owned by institutional investors. 0.4% of Starbucks shares are owned by company insiders. Comparatively, 0.3% of McDonald's shares are owned 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Starbucks and McDonald's, as provided by MarketBeat.com.

Starbucks currently has a consensus price target of $98.36, indicating a potential downside of 5.71%. McDonald's has a consensus price target of $232.4333, indicating a potential upside of 8.27%. Given McDonald's' stronger consensus rating and higher possible upside, analysts clearly believe McDonald's is more favorable than Starbucks.

Earnings and Valuation

This table compares Starbucks and McDonald's' top-line revenue, earnings per share (EPS) and valuation.

McDonald's has lower revenue, but higher earnings 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.

Profitability

This table compares Starbucks and McDonald's' net margins, return on equity and return on assets.

Volatility & Risk

Starbucks has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Dividends

Starbucks pays an annual dividend of $1.80 per share and has a dividend yield of 1.7%. McDonald's pays an annual dividend of $5.16 per share and has a dividend yield of 2.4%. Starbucks pays out 153.8% 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 pays out 65.8% of its earnings in the form of a dividend. Starbucks has increased its dividend for 10 consecutive years and McDonald's has increased its dividend for 43 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

McDonald's beats Starbucks on 11 of the 17 factors compared between the two stocks.

Chipotle Mexican Grill (NYSE:CMG) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

90.0% of Chipotle Mexican Grill shares are held by institutional investors. Comparatively, 66.3% of McDonald's shares are held by institutional investors. 1.0% of Chipotle Mexican Grill shares are held by company insiders. Comparatively, 0.3% of McDonald's shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Chipotle Mexican Grill and McDonald's, as reported by MarketBeat.com.

Chipotle Mexican Grill currently has a consensus target price of $1,380.2759, indicating a potential downside of 7.28%. McDonald's has a consensus target price of $232.4333, indicating a potential upside of 8.27%. Given McDonald's' stronger consensus rating and higher possible upside, analysts plainly believe McDonald's is more favorable than Chipotle Mexican Grill.

Valuation & Earnings

This table compares Chipotle Mexican Grill and McDonald's' gross revenue, earnings per share and valuation.

McDonald's has higher revenue and earnings than Chipotle Mexican Grill. McDonald's is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chipotle Mexican Grill and McDonald's' net margins, return on equity and return on assets.

Volatility and Risk

Chipotle Mexican Grill has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

McDonald's beats Chipotle Mexican Grill on 8 of the 14 factors compared between the two stocks.

Yum! Brands (NYSE:YUM) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Yum! Brands and McDonald's' gross revenue, earnings per share (EPS) and valuation.

McDonald's has higher revenue and earnings than Yum! Brands. McDonald's is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Yum! Brands and McDonald's, as reported by MarketBeat.com.

Yum! Brands currently has a consensus target price of $105.2222, indicating a potential downside of 0.13%. McDonald's has a consensus target price of $232.4333, indicating a potential upside of 8.27%. Given McDonald's' stronger consensus rating and higher possible upside, analysts plainly believe McDonald's is more favorable than Yum! Brands.

Insider and Institutional Ownership

75.2% of Yum! Brands shares are owned by institutional investors. Comparatively, 66.3% of McDonald's shares are owned by institutional investors. 0.7% of Yum! Brands shares are owned by company insiders. Comparatively, 0.3% of McDonald's shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Yum! Brands and McDonald's' net margins, return on equity and return on assets.

Risk and Volatility

Yum! Brands has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Dividends

Yum! Brands pays an annual dividend of $1.88 per share and has a dividend yield of 1.8%. McDonald's pays an annual dividend of $5.16 per share and has a dividend yield of 2.4%. Yum! Brands pays out 53.0% of its earnings in the form of a dividend. McDonald's pays out 65.8% 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 increased its dividend for 43 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

McDonald's beats Yum! Brands on 11 of the 17 factors compared between the two stocks.

McDonald's (NYSE:MCD) and Darden Restaurants (NYSE:DRI) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares McDonald's and Darden Restaurants' net margins, return on equity and return on assets.

Insider and Institutional Ownership

66.3% of McDonald's shares are owned by institutional investors. Comparatively, 89.4% of Darden Restaurants shares are owned by institutional investors. 0.3% of McDonald's shares are owned by insiders. Comparatively, 1.0% of Darden Restaurants shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares McDonald's and Darden Restaurants' top-line revenue, earnings per share and valuation.

McDonald's has higher revenue and earnings than Darden Restaurants. McDonald's is trading at a lower price-to-earnings ratio than Darden Restaurants, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for McDonald's and Darden Restaurants, as provided by MarketBeat.com.

McDonald's presently has a consensus price target of $232.4333, indicating a potential upside of 8.27%. Darden Restaurants has a consensus price target of $113.7833, indicating a potential downside of 4.31%. Given McDonald's' stronger consensus rating and higher probable upside, equities analysts plainly believe McDonald's is more favorable than Darden Restaurants.

Dividends

McDonald's pays an annual dividend of $5.16 per share and has a dividend yield of 2.4%. Darden Restaurants pays an annual dividend of $1.48 per share and has a dividend yield of 1.2%. McDonald's pays out 65.8% of its earnings in the form of a dividend. Darden Restaurants pays out 47.3% 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 increased its dividend for 43 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

McDonald's has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Darden Restaurants has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Summary

McDonald's beats Darden Restaurants on 12 of the 17 factors compared between the two stocks.

McDonald's (NYSE:MCD) and Domino's Pizza (NYSE:DPZ) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares McDonald's and Domino's Pizza's net margins, return on equity and return on assets.

Institutional and Insider Ownership

66.3% of McDonald's shares are held by institutional investors. Comparatively, 88.8% of Domino's Pizza shares are held by institutional investors. 0.3% of McDonald's shares are held by insiders. Comparatively, 1.7% of Domino's Pizza shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares McDonald's and Domino's Pizza's gross revenue, earnings per share and valuation.

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.

Analyst Ratings

This is a summary of recent ratings and price targets for McDonald's and Domino's Pizza, as provided by MarketBeat.

McDonald's currently has a consensus price target of $232.4333, indicating a potential upside of 8.27%. Domino's Pizza has a consensus price target of $425.3704, indicating a potential upside of 12.76%. Given Domino's Pizza's higher probable upside, analysts plainly believe Domino's Pizza is more favorable than McDonald's.

Dividends

McDonald's pays an annual dividend of $5.16 per share and has a dividend yield of 2.4%. Domino's Pizza pays an annual dividend of $3.12 per share and has a dividend yield of 0.8%. McDonald's pays out 65.8% of its earnings in the form of a dividend. Domino's Pizza pays out 32.6% 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 increased its dividend for 43 consecutive years. McDonald's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

McDonald's has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Domino's Pizza has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Summary

McDonald's beats Domino's Pizza on 10 of the 17 factors compared between the two stocks.

McDonald's (NYSE:MCD) and Texas Roadhouse (NASDAQ:TXRH) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares McDonald's and Texas Roadhouse's net margins, return on equity and return on assets.

Insider & Institutional Ownership

66.3% of McDonald's shares are owned by institutional investors. Comparatively, 91.7% of Texas Roadhouse shares are owned by institutional investors. 0.3% of McDonald's shares are owned by insiders. Comparatively, 6.2% of Texas Roadhouse 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.

Valuation and Earnings

This table compares McDonald's and Texas Roadhouse's top-line revenue, earnings per share (EPS) and valuation.

McDonald's has higher revenue and earnings than Texas Roadhouse. McDonald's is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for McDonald's and Texas Roadhouse, as provided by MarketBeat.

McDonald's currently has a consensus price target of $232.4333, indicating a potential upside of 8.27%. Texas Roadhouse has a consensus price target of $72.3478, indicating a potential downside of 7.88%. Given McDonald's' stronger consensus rating and higher probable upside, equities research analysts plainly believe McDonald's is more favorable than Texas Roadhouse.

Volatility and Risk

McDonald's has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Summary

McDonald's beats Texas Roadhouse on 9 of the 15 factors compared between the two stocks.