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MCD vs. PSO: McDonald's vs. Pearson Stock Comparison

How do McDonald's (MCD) and Pearson (PSO) 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

McDonald's (MCD) and Pearson (PSO) both fall under the Consumer Services industry group, but MCD is classified in Hotels, Restaurants & Leisure while PSO is classified in Diversified Consumer Services.

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

Company profile comparison for McDonald's (MCD) and Pearson (PSO)
Profile ItemMCDPSO
NameMcDonald's CorporationPearson plc Sponsored ADR
Country/RegionUnited StatesUnited Kingdom
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer ServicesConsumer Services
GICS IndustryHotels, Restaurants & LeisureDiversified Consumer Services
GICS Sub-IndustryRestaurantsEducation Services
Market Capitalization195.16 billion USD10.38 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 5, 1966November 18, 1996
Security TypeCommon StockADR

Price Performance

Cumulative Growth

MCD
PSO
GSPC
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McDonald's (MCD) vs. Pearson (PSO), 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 McDonald's (MCD) and Pearson (PSO). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
Total Return (1Y)-3.33%34.42%
Total Return (3Y, Annualized)4.39%15.38%
Total Return (5Y, Annualized)4.66%17.99%

Risk Profile

Drawdown History

MCD
PSO
GSPC
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McDonald's (MCD) vs. Pearson (PSO), 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 McDonald's (MCD) and Pearson (PSO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
Volatility (1Y, Annualized)20.82%25.07%
Beta (5Y)0.390.43
Max Drawdown (5Y)-30.98%-30.73%
Avg. Volume (3M)5.39M698.84K

Risk-Adjusted Performance

Risk-Return Positioning

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MCD and PSO 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 McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
Sharpe Ratio (1Y)-0.371.20
Sortino Ratio (1Y)-0.541.67

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Pearson (PSO) earns 9.16% on shareholders’ equity, ranked against its industry; McDonald's (MCD) has no ROE this period.

MCD

Consumer Services industry group

--

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

PSO

Consumer Services industry group

9.16%

Max
76.75%
Q3
34.07%
Median
15.90%
PSO
9.16%
Q1
3.23%
Min
-40.61%
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McDonald's (MCD) vs. Pearson (PSO): MCD does not report ROE, so it has no value marker; PSO is benchmarked against the Consumer Services industry group.

Net Margin (TTM)

McDonald's (MCD) at 32.38% converts revenue to bottom-line profit above its industry’s benchmark range, while Pearson (PSO) at 8.78% keeps roughly the typical share for its industry.

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%

PSO

Consumer Services industry group

8.78%

Max
25.52%
Q3
12.95%
PSO
8.78%
Median
6.63%
Q1
1.46%
Min
-14.36%
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

McDonald's (MCD) at 48.29% operates in the top operating margin quartile, ahead of Pearson (PSO) at 13.32%, which runs around its industry’s norm.

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%

PSO

Consumer Services industry group

13.32%

Max
49.05%
Q3
24.35%
Median
14.23%
PSO
13.32%
Q1
5.67%
Min
-16.47%
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
ROE (TTM)--9.16%
ROA (TTM)--5.09%
Net Margin (TTM)32.38%8.78%
Operating Margin (TTM)48.29%13.32%
Gross Margin (TTM)57.62%52.04%

Growth

Revenue Growth

McDonald's (MCD) at 3.72% is around its peer norm for revenue growth, while Pearson (PSO) at 0.70% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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McDonald's (MCD) vs. Pearson (PSO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both McDonald's (MCD) at 4.92% and Pearson (PSO) at -20.16% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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McDonald's (MCD) vs. Pearson (PSO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
Revenue Growth (YoY)3.72%0.70%
Revenue Growth (3Y CAGR)5.06%-2.35%
EPS Growth (YoY)4.92%-20.16%
EPS Growth (3Y CAGR)12.78%15.86%

Financial Strength

Current Ratio (MRQ)

Short-term liquidity can only be read on one side of this pairing: Pearson (PSO) shows current ratio of 2.00 against its industry benchmark, while McDonald's (MCD) has no reading this period.

MCD

Consumer Services industry group

--

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

PSO

Consumer Services industry group

2.00

Max
3.41
PSO
2.00
Q3
1.85
Median
1.06
Q1
0.72
Min
0.22
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McDonald's (MCD) vs. Pearson (PSO): MCD does not report current ratio, so it has no value marker; PSO is benchmarked against the Consumer Services industry group.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Pearson (PSO) carries debt-to-equity ratio of 0.52 against its industry range, while McDonald's (MCD) reports no figure this period.

MCD

Consumer Services industry group

--

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

PSO

Consumer Services industry group

0.52

Max
6.12
Q3
2.93
Median
1.29
PSO
0.52
Q1
0.37
Min
0.01
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McDonald's (MCD) vs. Pearson (PSO): MCD does not report debt-to-equity ratio, so it has no value marker; PSO is benchmarked against the Consumer Services industry group.

Financial Strength Metrics

Financial strength metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
Current Ratio (MRQ)--2.00
Debt / Equity (MRQ)--0.52
Net Debt / EBITDA3.572.35

Dividends

Dividend Yield (TTM)

McDonald's (MCD) at 2.68% delivers top-quartile income for its industry, while Pearson (PSO) at 1.46% pays a more typical yield — both are credible income propositions, MCD the richer one.

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%

PSO

Consumer Services industry group

1.46%

Max
4.10%
Q3
1.82%
PSO
1.46%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both McDonald's (MCD) at 58.86% and Pearson (PSO) at 51.09% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

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%

PSO

Consumer Services industry group

51.09%

Max
89.80%
PSO
51.09%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
Dividend Yield (TTM)2.68%1.46%
Dividend Payout Ratio (TTM)58.86%51.09%

Valuation

P/E Ratio (TTM)

Both McDonald's (MCD) at 21.88 and Pearson (PSO) at 25.78 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

PSO

Consumer Services industry group

25.78

Max
71.70
Q3
37.12
PSO
25.78
Median
21.88
Q1
13.00
Min
5.72
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

Pearson (PSO) at 2.86 prices around its industry’s typical P/S ratio, while McDonald's (MCD) at 7.02 clears its benchmark range — MCD looks notably rich on sales.

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

PSO

Consumer Services industry group

2.86

Max
6.40
Q3
3.01
PSO
2.86
Median
1.54
Q1
0.74
Min
0.08
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

McDonald's (MCD) reports a negative P/B ratio of -191.23, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Pearson (PSO) reports 2.38, ranking against industry peers normally.

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

PSO

Consumer Services industry group

2.38

Max
12.02
Q3
5.58
PSO
2.38
Median
2.37
Q1
1.09
Min
-4.51
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McDonald's (MCD) vs. Pearson (PSO): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for McDonald's (MCD) and Pearson (PSO)
MetricMCDPSO
P/E Ratio (TTM)21.8825.78
P/S Ratio (TTM)7.022.86
P/B Ratio (MRQ)-191.232.38
Free Cash Flow Yield (TTM)--8.08%