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.
| Profile Item | MCD | PSO |
|---|---|---|
| Name | McDonald's Corporation | Pearson plc Sponsored ADR |
| Country/Region | United States | United Kingdom |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry Group | Consumer Services | Consumer Services |
| GICS Industry | Hotels, Restaurants & Leisure | Diversified Consumer Services |
| GICS Sub-Industry | Restaurants | Education Services |
| Market Capitalization | 195.16 billion USD | 10.38 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 5, 1966 | November 18, 1996 |
| Security Type | Common Stock | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MCD | PSO |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | MCD | PSO |
|---|---|---|
| Volatility (1Y, Annualized) | 20.82% | 25.07% |
| Beta (5Y) | 0.39 | 0.43 |
| Max Drawdown (5Y) | -30.98% | -30.73% |
| Avg. Volume (3M) | 5.39M | 698.84K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MCD | PSO |
|---|---|---|
| Sharpe Ratio (1Y) | -0.37 | 1.20 |
| Sortino Ratio (1Y) | -0.54 | 1.67 |
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%
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%
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%
Profitability Metrics
| Metric | MCD | PSO |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | MCD | PSO |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | MCD | PSO |
|---|---|---|
| Current Ratio (MRQ) | -- | 2.00 |
| Debt / Equity (MRQ) | -- | 0.52 |
| Net Debt / EBITDA | 3.57 | 2.35 |
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%
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%
Dividend Metrics
| Metric | MCD | PSO |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | MCD | PSO |
|---|---|---|
| P/E Ratio (TTM) | 21.88 | 25.78 |
| P/S Ratio (TTM) | 7.02 | 2.86 |
| P/B Ratio (MRQ) | -191.23 | 2.38 |
| Free Cash Flow Yield (TTM) | -- | 8.08% |