McDonald's (MCD) vs. Royal Caribbean Cruises (RCL)

Company Profile

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

Valuation

Both McDonald's (MCD) at 22.89 and Royal Caribbean Cruises (RCL) at 17.21 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

Both look expensive on sales: Royal Caribbean Cruises (RCL) at 4.12 sits in the upper Price-to-Sales Ratio (TTM) quartile, and McDonald's (MCD) at 7.31 prices even higher, above its industry range.

McDonald's (MCD) reports a negative Price-to-Book Ratio (MRQ) of -155.94, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Royal Caribbean Cruises (RCL) reports 7.72, ranking against industry peers normally.

Valuation at a Glance

Profitability

Royal Caribbean Cruises (RCL) reports Return on Equity (TTM) of 49.58% and can be ranked against industry peers; McDonald's (MCD) has no value available for this period, so a direct comparison isn’t possible.

McDonald's (MCD) at 31.62% keeps the most of each sales dollar — above its industry’s Net Profit Margin (TTM) range — and Royal Caribbean Cruises (RCL) at 24.36% also retains a top-quartile share.

Both McDonald's (MCD) at 44.25% and Royal Caribbean Cruises (RCL) at 26.17% squeeze more operating profit from each sales dollar than most peers, ranking in the top Operating Profit Margin (TTM) quartile of their industries.

Profitability at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Financial Strength

McDonald's (MCD) at 1.14 keeps Current Ratio (MRQ) within its industry mid-range, while Royal Caribbean Cruises (RCL) at 0.20 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for RCL.

Royal Caribbean Cruises (RCL) reports Debt-to-Equity Ratio (MRQ) of 2.17 and can be ranked against industry peers; McDonald's (MCD) has no value available for this period, so a direct comparison isn’t possible.

Financial Strength at a Glance

Dividends

McDonald's (MCD) at 2.64% reports Dividend Yield (TTM) in the top quartile of industry peers, ahead of Royal Caribbean Cruises (RCL) at 1.77%, which sits around the industry mid-range.

Royal Caribbean Cruises (RCL) at 25.93% maintains Dividend Payout Ratio (TTM) around its industry median — a balanced dividend policy. McDonald's (MCD) at 59.85% sits outside the typical mid-range, leaning toward more retention or more distribution than the industry median.

Dividends at a Glance

Performance & Risk

Royal Caribbean Cruises (RCL) has an aggressive beta of 1.78, indicating higher sensitivity to broad-market moves, while McDonald's (MCD) is defensive at 0.41 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Performance & Risk at a Glance