IHG vs. MCD: InterContinental Hotels vs. McDonald's Stock Comparison

November 11, 2026

How do InterContinental Hotels (IHG) and McDonald's (MCD) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

InterContinental Hotels (IHG) and McDonald's (MCD) both belong to the Hotels, Restaurants & Leisure industry, though IHG is classified under Hotels, Resorts & Cruise Lines while MCD falls under Restaurants.

McDonald's (MCD) trades as ordinary local shares, while InterContinental Hotels (IHG) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for InterContinental Hotels (IHG) and McDonald's (MCD)
Profile Item	IHG	MCD
Name	InterContinental Hotels Group PLC ADR	McDonald's Corporation
Country/Region	United Kingdom	United States
GICS Sector	Consumer Discretionary	Consumer Discretionary
GICS Industry Group	Consumer Services	Consumer Services
GICS Industry	Hotels, Restaurants & Leisure	Hotels, Restaurants & Leisure
GICS Sub-Industry	Hotels, Resorts & Cruise Lines	Restaurants
Market Capitalization	26.05 billion USD	195.16 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	April 10, 2003	July 5, 1966
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

IHG

MCD

GSPC

InterContinental Hotels (IHG) vs. McDonald's (MCD), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for InterContinental Hotels (IHG) and McDonald's (MCD). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for InterContinental Hotels (IHG) and McDonald's (MCD). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
Total Return (1Y)	39.88%	-3.33%
Total Return (3Y, Annualized)	37.41%	4.39%
Total Return (5Y, Annualized)	22.58%	4.66%

Risk Profile

Drawdown History

IHG

MCD

GSPC

InterContinental Hotels (IHG) vs. McDonald's (MCD), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for InterContinental Hotels (IHG) and McDonald's (MCD). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
Volatility (1Y, Annualized)	25.00%	20.82%
Beta (5Y)	1.09	0.39
Max Drawdown (5Y)	-32.78%	-30.98%
Avg. Volume (3M)	213.26K	5.39M

Risk-Adjusted Performance

Risk-Return Positioning

IHG and MCD are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
Sharpe Ratio (1Y)	1.42	-0.37
Sortino Ratio (1Y)	2.31	-0.54

Profitability

ROE (TTM)

Neither InterContinental Hotels (IHG) nor McDonald's (MCD) reports a ROE value for this period, so a direct comparison isn’t possible.

IHG

Consumer Services industry group

Max: 76.75%
Q3: 34.07%
Median: 15.90%
Q1: 3.23%
Min: -40.61%
IHG: --

MCD

Consumer Services industry group

Max: 76.75%
Q3: 34.07%
Median: 15.90%
Q1: 3.23%
Min: -40.61%
MCD: --

InterContinental Hotels (IHG) vs. McDonald's (MCD): Neither stock reports ROE, so the chart shows available benchmark boxes without value markers.

Net Margin (TTM)

McDonald's (MCD) at 32.38% keeps the most of each sales dollar — above its industry’s net margin range — and InterContinental Hotels (IHG) at 13.40% also retains a top-quartile share.

IHG

Consumer Services industry group

13.40%

Max: 25.52%
IHG: 13.40%
Q3: 12.95%
Median: 6.63%
Q1: 1.46%
Min: -14.36%

MCD

Consumer Services industry group

32.38%

MCD: 32.38%
Max: 25.52%
Q3: 12.95%
Median: 6.63%
Q1: 1.46%
Min: -14.36%

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

Both InterContinental Hotels (IHG) at 25.12% and McDonald's (MCD) at 48.29% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

IHG

Consumer Services industry group

25.12%

Max: 49.05%
IHG: 25.12%
Q3: 24.35%
Median: 14.23%
Q1: 5.67%
Min: -16.47%

MCD

Consumer Services industry group

48.29%

Max: 49.05%
MCD: 48.29%
Q3: 24.35%
Median: 14.23%
Q1: 5.67%
Min: -16.47%

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
ROE (TTM)	--	--
ROA (TTM)	15.51%	--
Net Margin (TTM)	13.40%	32.38%
Operating Margin (TTM)	25.12%	48.29%
Gross Margin (TTM)	60.97%	57.62%

Growth

Revenue Growth

Both InterContinental Hotels (IHG) at 5.40% and McDonald's (MCD) at 3.72% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: McDonald's (MCD) reports EPS growth of 4.92%, ranked against its industry; InterContinental Hotels (IHG) has no EPS growth figure this period.

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
Revenue Growth (YoY)	5.40%	3.72%
Revenue Growth (3Y CAGR)	10.06%	5.06%
EPS Growth (YoY)	--	4.92%
EPS Growth (3Y CAGR)	33.17%	12.78%

Financial Strength

Current Ratio (MRQ)

Short-term liquidity can only be read on one side of this pairing: InterContinental Hotels (IHG) shows current ratio of 0.66 against its industry benchmark, while McDonald's (MCD) has no reading this period.

IHG

Consumer Services industry group

0.66

Max: 3.41
Q3: 1.85
Median: 1.06
Q1: 0.72
IHG: 0.66
Min: 0.22

MCD

Consumer Services industry group

Max: 3.41
Q3: 1.85
Median: 1.06
Q1: 0.72
Min: 0.22
MCD: --

InterContinental Hotels (IHG) vs. McDonald's (MCD): MCD does not report current ratio, so it has no value marker; IHG is benchmarked against the Consumer Services industry group.

Debt / Equity (MRQ)

Neither InterContinental Hotels (IHG) nor McDonald's (MCD) reports a debt-to-equity ratio value for this period, so a direct comparison isn’t possible.

IHG

Consumer Services industry group

Max: 6.12
Q3: 2.93
Median: 1.29
Q1: 0.37
Min: 0.01
IHG: --

MCD

Consumer Services industry group

Max: 6.12
Q3: 2.93
Median: 1.29
Q1: 0.37
Min: 0.01
MCD: --

InterContinental Hotels (IHG) vs. McDonald's (MCD): Neither stock reports debt-to-equity ratio, so the chart shows available benchmark boxes without value markers.

Financial Strength Metrics

Financial strength metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
Current Ratio (MRQ)	0.66	--
Debt / Equity (MRQ)	--	--
Net Debt / EBITDA	2.89	3.57

Dividends

Dividend Yield (TTM)

McDonald's (MCD) at 2.68% delivers top-quartile income for its industry, while InterContinental Hotels (IHG) at 1.08% pays a more typical yield — both are credible income propositions, MCD the richer one.

IHG

Consumer Services industry group

1.08%

Max: 4.10%
Q3: 1.82%
IHG: 1.08%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MCD

Consumer Services industry group

2.68%

Max: 4.10%
MCD: 2.68%
Q3: 1.82%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both InterContinental Hotels (IHG) at 39.21% and McDonald's (MCD) at 58.86% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

IHG

Consumer Services industry group

39.21%

Max: 89.80%
IHG: 39.21%
Q3: 36.83%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MCD

Consumer Services industry group

58.86%

Max: 89.80%
MCD: 58.86%
Q3: 36.83%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
Dividend Yield (TTM)	1.08%	2.68%
Dividend Payout Ratio (TTM)	39.21%	58.86%

Valuation

P/E Ratio (TTM)

McDonald's (MCD) at 21.88 is near its industry’s usual P/E ratio, while InterContinental Hotels (IHG) at 37.95 sits in the richer quartile — IHG needs stronger growth or earnings quality to justify the premium.

IHG

Consumer Services industry group

37.95

Max: 71.70
IHG: 37.95
Q3: 37.12
Median: 21.88
Q1: 13.00
Min: 5.72

MCD

Consumer Services industry group

21.88

Max: 71.70
Q3: 37.12
MCD: 21.88
Median: 21.88
Q1: 13.00
Min: 5.72

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: InterContinental Hotels (IHG) at 4.89 sits in the upper P/S ratio quartile, and McDonald's (MCD) at 7.02 prices even higher, above its industry range.

IHG

Consumer Services industry group

4.89

Max: 6.40
IHG: 4.89
Q3: 3.01
Median: 1.54
Q1: 0.74
Min: 0.08

MCD

Consumer Services industry group

7.02

MCD: 7.02
Max: 6.40
Q3: 3.01
Median: 1.54
Q1: 0.74
Min: 0.08

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

Both InterContinental Hotels (IHG) at -53.91 and McDonald's (MCD) at -191.23 report negative P/B ratio values, meaning both companies have negative book equity — neither multiple is meaningful for valuation.

IHG

Consumer Services industry group

-53.91

Max: 12.02
Q3: 5.58
Median: 2.37
Q1: 1.09
Min: -4.51
IHG: -53.91

MCD

Consumer Services industry group

-191.23

Max: 12.02
Q3: 5.58
Median: 2.37
Q1: 1.09
Min: -4.51
MCD: -191.23

InterContinental Hotels (IHG) vs. McDonald's (MCD): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for InterContinental Hotels (IHG) and McDonald's (MCD)
Metric	IHG	MCD
P/E Ratio (TTM)	37.95	21.88
P/S Ratio (TTM)	4.89	7.02
P/B Ratio (MRQ)	-53.91	-191.23
Free Cash Flow Yield (TTM)	3.51%	--