DRI vs. MCD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DRI and MCD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | DRI | MCD |
|---|---|---|
| Company Name | Darden Restaurants, Inc. | McDonald's Corporation |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Hotels, Restaurants & Leisure |
| Market Capitalization | 20.31 billion USD | 217.34 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | May 9, 1995 | July 5, 1966 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of DRI and MCD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | DRI | MCD |
|---|---|---|
| 5-Day Price Return | 0.14% | 2.65% |
| 13-Week Price Return | -16.17% | -0.62% |
| 26-Week Price Return | -15.20% | -0.54% |
| 52-Week Price Return | 2.45% | 3.26% |
| Month-to-Date Return | -3.51% | 2.88% |
| Year-to-Date Return | -6.89% | 5.91% |
| 10-Day Avg. Volume | 1.43M | 3.57M |
| 3-Month Avg. Volume | 1.20M | 3.19M |
| 3-Month Volatility | 23.85% | 14.32% |
| Beta | 0.65 | 0.53 |
Profitability
Return on Equity (TTM)
DRI
49.94%
Hotels, Restaurants & Leisure Industry
- Max
- 85.86%
- Q3
- 39.97%
- Median
- 16.82%
- Q1
- 6.71%
- Min
- -33.94%
In the upper quartile for the Hotels, Restaurants & Leisure industry, DRI’s Return on Equity of 49.94% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
MCD
95.13%
Hotels, Restaurants & Leisure Industry
- Max
- 85.86%
- Q3
- 39.97%
- Median
- 16.82%
- Q1
- 6.71%
- Min
- -33.94%
MCD’s Return on Equity of 95.13% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
DRI
8.90%
Hotels, Restaurants & Leisure Industry
- Max
- 25.51%
- Q3
- 14.65%
- Median
- 8.65%
- Q1
- 3.34%
- Min
- -9.83%
DRI’s Net Profit Margin of 8.90% is aligned with the median group of its peers in the Hotels, Restaurants & Leisure industry. This indicates its ability to convert revenue into profit is typical for the sector.
MCD
32.05%
Hotels, Restaurants & Leisure Industry
- Max
- 25.51%
- Q3
- 14.65%
- Median
- 8.65%
- Q1
- 3.34%
- Min
- -9.83%
MCD’s Net Profit Margin of 32.05% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
DRI
11.58%
Hotels, Restaurants & Leisure Industry
- Max
- 41.93%
- Q3
- 22.25%
- Median
- 15.03%
- Q1
- 6.66%
- Min
- -15.28%
DRI’s Operating Profit Margin of 11.58% is around the midpoint for the Hotels, Restaurants & Leisure industry, indicating that its efficiency in managing core business operations is typical for the sector.
MCD
46.09%
Hotels, Restaurants & Leisure Industry
- Max
- 41.93%
- Q3
- 22.25%
- Median
- 15.03%
- Q1
- 6.66%
- Min
- -15.28%
MCD’s Operating Profit Margin of 46.09% is exceptionally high, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | DRI | MCD |
|---|---|---|
| Return on Equity (TTM) | 49.94% | 95.13% |
| Return on Assets (TTM) | 8.73% | 14.53% |
| Net Profit Margin (TTM) | 8.90% | 32.05% |
| Operating Profit Margin (TTM) | 11.58% | 46.09% |
| Gross Profit Margin (TTM) | 21.86% | 57.43% |
Financial Strength
Current Ratio (MRQ)
DRI
0.40
Hotels, Restaurants & Leisure Industry
- Max
- 2.86
- Q3
- 1.63
- Median
- 1.09
- Q1
- 0.72
- Min
- 0.16
DRI’s Current Ratio of 0.40 falls into the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
MCD
1.00
Hotels, Restaurants & Leisure Industry
- Max
- 2.86
- Q3
- 1.63
- Median
- 1.09
- Q1
- 0.72
- Min
- 0.16
MCD’s Current Ratio of 1.00 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
DRI
1.76
Hotels, Restaurants & Leisure Industry
- Max
- 11.29
- Q3
- 5.00
- Median
- 1.69
- Q1
- 0.28
- Min
- 0.00
DRI’s Debt-to-Equity Ratio of 1.76 is typical for the Hotels, Restaurants & Leisure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MCD
40.64
Hotels, Restaurants & Leisure Industry
- Max
- 11.29
- Q3
- 5.00
- Median
- 1.69
- Q1
- 0.28
- Min
- 0.00
With a Debt-to-Equity Ratio of 40.64, MCD operates with exceptionally high leverage compared to the Hotels, Restaurants & Leisure industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
DRI
7.78
Hotels, Restaurants & Leisure Industry
- Max
- 26.88
- Q3
- 11.95
- Median
- 4.07
- Q1
- 1.21
- Min
- -11.84
DRI’s Interest Coverage Ratio of 7.78 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.
MCD
9.26
Hotels, Restaurants & Leisure Industry
- Max
- 26.88
- Q3
- 11.95
- Median
- 4.07
- Q1
- 1.21
- Min
- -11.84
MCD’s Interest Coverage Ratio of 9.26 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | DRI | MCD |
|---|---|---|
| Current Ratio (MRQ) | 0.40 | 1.00 |
| Quick Ratio (MRQ) | 0.14 | 0.82 |
| Debt-to-Equity Ratio (MRQ) | 1.76 | 40.64 |
| Interest Coverage Ratio (TTM) | 7.78 | 9.26 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DRI
3.30%
Hotels, Restaurants & Leisure Industry
- Max
- 6.26%
- Q3
- 2.86%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.30%, DRI offers a more attractive income stream than most of its peers in the Hotels, Restaurants & Leisure industry, signaling a strong commitment to shareholder returns.
MCD
2.31%
Hotels, Restaurants & Leisure Industry
- Max
- 6.26%
- Q3
- 2.86%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Yield of 2.31% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
DRI
60.69%
Hotels, Restaurants & Leisure Industry
- Max
- 149.29%
- Q3
- 62.26%
- Median
- 24.10%
- Q1
- 0.00%
- Min
- 0.00%
DRI’s Dividend Payout Ratio of 60.69% is within the typical range for the Hotels, Restaurants & Leisure industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MCD
60.12%
Hotels, Restaurants & Leisure Industry
- Max
- 149.29%
- Q3
- 62.26%
- Median
- 24.10%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Payout Ratio of 60.12% is within the typical range for the Hotels, Restaurants & Leisure industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | DRI | MCD |
|---|---|---|
| Dividend Yield (TTM) | 3.30% | 2.31% |
| Dividend Payout Ratio (TTM) | 60.69% | 60.12% |
Valuation
Price-to-Earnings Ratio (TTM)
DRI
18.38
Hotels, Restaurants & Leisure Industry
- Max
- 52.15
- Q3
- 31.98
- Median
- 20.63
- Q1
- 14.77
- Min
- 3.30
DRI’s P/E Ratio of 18.38 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MCD
25.98
Hotels, Restaurants & Leisure Industry
- Max
- 52.15
- Q3
- 31.98
- Median
- 20.63
- Q1
- 14.77
- Min
- 3.30
MCD’s P/E Ratio of 25.98 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
DRI
1.64
Hotels, Restaurants & Leisure Industry
- Max
- 7.94
- Q3
- 3.96
- Median
- 2.01
- Q1
- 1.22
- Min
- 0.16
DRI’s P/S Ratio of 1.64 aligns with the market consensus for the Hotels, Restaurants & Leisure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
MCD
8.32
Hotels, Restaurants & Leisure Industry
- Max
- 7.94
- Q3
- 3.96
- Median
- 2.01
- Q1
- 1.22
- Min
- 0.16
With a P/S Ratio of 8.32, MCD trades at a valuation that eclipses even the highest in the Hotels, Restaurants & Leisure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
DRI
10.75
Hotels, Restaurants & Leisure Industry
- Max
- 29.33
- Q3
- 13.12
- Median
- 4.61
- Q1
- 2.02
- Min
- 0.37
DRI’s P/B Ratio of 10.75 is within the conventional range for the Hotels, Restaurants & Leisure industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
MCD
160.46
Hotels, Restaurants & Leisure Industry
- Max
- 29.33
- Q3
- 13.12
- Median
- 4.61
- Q1
- 2.02
- Min
- 0.37
At 160.46, MCD’s P/B Ratio is at an extreme premium to the Hotels, Restaurants & Leisure industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | DRI | MCD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 18.38 | 25.98 |
| Price-to-Sales Ratio (TTM) | 1.64 | 8.32 |
| Price-to-Book Ratio (MRQ) | 10.75 | 160.46 |
| Price-to-Free Cash Flow Ratio (TTM) | 18.94 | 29.65 |