MCD vs. SHAK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCD and SHAK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MCD | SHAK |
|---|---|---|
| Company Name | McDonald's Corporation | Shake Shack Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Hotels, Restaurants & Leisure |
| Market Capitalization | 217.82 billion USD | 3.94 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 5, 1966 | January 30, 2015 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MCD and SHAK 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 | MCD | SHAK |
|---|---|---|
| 5-Day Price Return | -0.14% | -1.75% |
| 13-Week Price Return | 4.01% | -33.42% |
| 26-Week Price Return | -3.09% | 0.30% |
| 52-Week Price Return | 0.07% | -10.60% |
| Month-to-Date Return | -3.08% | -11.69% |
| Year-to-Date Return | 4.83% | -27.88% |
| 10-Day Avg. Volume | 3.27M | 1.19M |
| 3-Month Avg. Volume | 3.47M | 1.34M |
| 3-Month Volatility | 14.18% | 44.44% |
| Beta | 0.50 | 1.71 |
Profitability
Return on Equity (TTM)
MCD
95.13%
Hotels, Restaurants & Leisure Industry
- Max
- 84.03%
- Q3
- 40.12%
- Median
- 17.38%
- Q1
- 7.45%
- 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.
SHAK
4.20%
Hotels, Restaurants & Leisure Industry
- Max
- 84.03%
- Q3
- 40.12%
- Median
- 17.38%
- Q1
- 7.45%
- Min
- -33.94%
SHAK’s Return on Equity of 4.20% is in the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
MCD
32.21%
Hotels, Restaurants & Leisure Industry
- Max
- 25.61%
- Q3
- 14.65%
- Median
- 8.66%
- Q1
- 3.36%
- Min
- -9.83%
MCD’s Net Profit Margin of 32.21% 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.
SHAK
1.50%
Hotels, Restaurants & Leisure Industry
- Max
- 25.61%
- Q3
- 14.65%
- Median
- 8.66%
- Q1
- 3.36%
- Min
- -9.83%
Falling into the lower quartile for the Hotels, Restaurants & Leisure industry, SHAK’s Net Profit Margin of 1.50% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
MCD
45.80%
Hotels, Restaurants & Leisure Industry
- Max
- 45.80%
- Q3
- 22.44%
- Median
- 14.98%
- Q1
- 6.59%
- Min
- -15.28%
An Operating Profit Margin of 45.80% places MCD in the upper quartile for the Hotels, Restaurants & Leisure industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
SHAK
1.32%
Hotels, Restaurants & Leisure Industry
- Max
- 45.80%
- Q3
- 22.44%
- Median
- 14.98%
- Q1
- 6.59%
- Min
- -15.28%
SHAK’s Operating Profit Margin of 1.32% is in the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | MCD | SHAK |
|---|---|---|
| Return on Equity (TTM) | 95.13% | 4.20% |
| Return on Assets (TTM) | 14.78% | 1.16% |
| Net Profit Margin (TTM) | 32.21% | 1.50% |
| Operating Profit Margin (TTM) | 45.80% | 1.32% |
| Gross Profit Margin (TTM) | 57.00% | 47.03% |
Financial Strength
Current Ratio (MRQ)
MCD
1.30
Hotels, Restaurants & Leisure Industry
- Max
- 2.73
- Q3
- 1.63
- Median
- 1.12
- Q1
- 0.73
- Min
- 0.18
MCD’s Current Ratio of 1.30 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
SHAK
1.92
Hotels, Restaurants & Leisure Industry
- Max
- 2.73
- Q3
- 1.63
- Median
- 1.12
- Q1
- 0.73
- Min
- 0.18
SHAK’s Current Ratio of 1.92 is in the upper quartile for the Hotels, Restaurants & Leisure industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
MCD
40.64
Hotels, Restaurants & Leisure Industry
- Max
- 11.29
- Q3
- 4.71
- Median
- 1.65
- Q1
- 0.27
- 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.
SHAK
0.53
Hotels, Restaurants & Leisure Industry
- Max
- 11.29
- Q3
- 4.71
- Median
- 1.65
- Q1
- 0.27
- Min
- 0.00
SHAK’s Debt-to-Equity Ratio of 0.53 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.
Interest Coverage Ratio (TTM)
MCD
9.26
Hotels, Restaurants & Leisure Industry
- Max
- 21.72
- Q3
- 11.40
- Median
- 4.02
- Q1
- 1.19
- 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.
SHAK
11.14
Hotels, Restaurants & Leisure Industry
- Max
- 21.72
- Q3
- 11.40
- Median
- 4.02
- Q1
- 1.19
- Min
- -11.84
SHAK’s Interest Coverage Ratio of 11.14 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 | MCD | SHAK |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 1.92 |
| Quick Ratio (MRQ) | 1.03 | 1.83 |
| Debt-to-Equity Ratio (MRQ) | 40.64 | 0.53 |
| Interest Coverage Ratio (TTM) | 9.26 | 11.14 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MCD
2.32%
Hotels, Restaurants & Leisure Industry
- Max
- 6.81%
- Q3
- 2.73%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Yield of 2.32% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.
SHAK
0.00%
Hotels, Restaurants & Leisure Industry
- Max
- 6.81%
- Q3
- 2.73%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
SHAK currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
MCD
59.51%
Hotels, Restaurants & Leisure Industry
- Max
- 128.39%
- Q3
- 61.60%
- Median
- 21.91%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Payout Ratio of 59.51% is within the typical range for the Hotels, Restaurants & Leisure industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SHAK
0.00%
Hotels, Restaurants & Leisure Industry
- Max
- 128.39%
- Q3
- 61.60%
- Median
- 21.91%
- Q1
- 0.00%
- Min
- 0.00%
SHAK has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | MCD | SHAK |
|---|---|---|
| Dividend Yield (TTM) | 2.32% | 0.00% |
| Dividend Payout Ratio (TTM) | 59.51% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
MCD
25.70
Hotels, Restaurants & Leisure Industry
- Max
- 56.96
- Q3
- 33.82
- Median
- 21.30
- Q1
- 15.75
- Min
- 6.06
MCD’s P/E Ratio of 25.70 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.
SHAK
200.88
Hotels, Restaurants & Leisure Industry
- Max
- 56.96
- Q3
- 33.82
- Median
- 21.30
- Q1
- 15.75
- Min
- 6.06
At 200.88, SHAK’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Hotels, Restaurants & Leisure industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
MCD
8.28
Hotels, Restaurants & Leisure Industry
- Max
- 7.19
- Q3
- 3.99
- Median
- 1.93
- Q1
- 1.26
- Min
- 0.17
With a P/S Ratio of 8.28, 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.
SHAK
3.02
Hotels, Restaurants & Leisure Industry
- Max
- 7.19
- Q3
- 3.99
- Median
- 1.93
- Q1
- 1.26
- Min
- 0.17
SHAK’s P/S Ratio of 3.02 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.
Price-to-Book Ratio (MRQ)
MCD
160.46
Hotels, Restaurants & Leisure Industry
- Max
- 24.89
- Q3
- 11.60
- Median
- 4.91
- Q1
- 2.29
- 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.
SHAK
11.56
Hotels, Restaurants & Leisure Industry
- Max
- 24.89
- Q3
- 11.60
- Median
- 4.91
- Q1
- 2.29
- Min
- 0.37
SHAK’s P/B Ratio of 11.56 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.
Valuation at a Glance
| Symbol | MCD | SHAK |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.70 | 200.88 |
| Price-to-Sales Ratio (TTM) | 8.28 | 3.02 |
| Price-to-Book Ratio (MRQ) | 160.46 | 11.56 |
| Price-to-Free Cash Flow Ratio (TTM) | 31.28 | 86.46 |