McDonald's (NYSE:MCD) Vs. SBUX, CMG, YUM, DRI, DPZ, TXRH, WEN, PZZA, CBRL, and CAKE
Should you be buying McDonald's stock or one of its competitors? The main competitors of McDonald's include Starbucks (SBUX), Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Darden Restaurants (DRI), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), The Wendy's (WEN), Papa John's International (PZZA), Cracker Barrel Old Country Store (CBRL), and The Cheesecake Factory (CAKE). These companies are all part of the "restaurants" industry.
McDonald's vs.
Chipotle Mexican Grill (NYSE:CMG) and McDonald's (NYSE:MCD) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership, risk, community ranking and media sentiment.
In the previous week, Chipotle Mexican Grill had 46 more articles in the media than McDonald's. MarketBeat recorded 64 mentions for Chipotle Mexican Grill and 18 mentions for McDonald's. Chipotle Mexican Grill's average media sentiment score of 0.64 beat McDonald's' score of -0.02 indicating that Chipotle Mexican Grill is being referred to more favorably in the media.
90.3% of Chipotle Mexican Grill shares are owned by institutional investors. Comparatively, 66.3% of McDonald's shares are owned by institutional investors. 1.0% of Chipotle Mexican Grill shares are owned by company insiders. Comparatively, 0.2% of McDonald's shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
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.
Chipotle Mexican Grill has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, McDonald's has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Chipotle Mexican Grill presently has a consensus price target of $1,988.15, indicating a potential upside of 10.93%. McDonald's has a consensus price target of $261.59, indicating a potential upside of 9.71%. Given Chipotle Mexican Grill's higher possible upside, analysts plainly believe Chipotle Mexican Grill is more favorable than McDonald's.
McDonald's received 365 more outperform votes than Chipotle Mexican Grill when rated by MarketBeat users. Likewise, 74.29% of users gave McDonald's an outperform vote while only 61.64% of users gave Chipotle Mexican Grill an outperform vote.
McDonald's has a net margin of 31.72% compared to Chipotle Mexican Grill's net margin of 8.57%. Chipotle Mexican Grill's return on equity of 28.27% beat McDonald's' return on equity.
Summary
Chipotle Mexican Grill beats McDonald's on 10 of the 19 factors compared between the two stocks.
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.
Skip ChartMedia 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.
Skip ChartMcDonald's (NYSE:MCD) vs. Its Competitors
McDonald's Competitors List
