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MCD vs. W: A Head-to-Head Stock Comparison

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Here’s a clear look at MCD and W, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMCDW
Company NameMcDonald's CorporationWayfair Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryHotels, Restaurants & LeisureSpecialty Retail
Market Capitalization217.70 billion USD10.20 billion USD
ExchangeNYSENYSE
Listing DateJuly 5, 1966October 2, 2014
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MCD and W 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.

MCD vs. W: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMCDW
5-Day Price Return-0.92%7.38%
13-Week Price Return-2.20%98.91%
26-Week Price Return3.64%66.12%
52-Week Price Return13.22%105.94%
Month-to-Date Return1.67%19.88%
Year-to-Date Return5.24%77.55%
10-Day Avg. Volume3.77M5.63M
3-Month Avg. Volume3.70M5.57M
3-Month Volatility16.27%67.02%
Beta0.523.04

Profitability

Return on Equity (TTM)

MCD

95.13%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

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.

W

-659.94%

Specialty Retail Industry

Max
61.19%
Q3
37.24%
Median
18.81%
Q1
8.92%
Min
-13.03%

W has a negative Return on Equity of -659.94%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

MCD vs. W: A comparison of their Return on Equity (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Net Profit Margin (TTM)

MCD

32.21%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

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.

W

-2.50%

Specialty Retail Industry

Max
21.28%
Q3
10.68%
Median
6.08%
Q1
2.43%
Min
-4.54%

W has a negative Net Profit Margin of -2.50%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

MCD vs. W: A comparison of their Net Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Operating Profit Margin (TTM)

MCD

45.80%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

MCD’s Operating Profit Margin of 45.80% is exceptionally high, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

W

-1.97%

Specialty Retail Industry

Max
33.35%
Q3
15.84%
Median
9.34%
Q1
3.83%
Min
-8.97%

W has a negative Operating Profit Margin of -1.97%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

MCD vs. W: A comparison of their Operating Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Profitability at a Glance

SymbolMCDW
Return on Equity (TTM)95.13%-659.94%
Return on Assets (TTM)14.78%-8.84%
Net Profit Margin (TTM)32.21%-2.50%
Operating Profit Margin (TTM)45.80%-1.97%
Gross Profit Margin (TTM)57.00%30.27%

Financial Strength

Current Ratio (MRQ)

MCD

1.30

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

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.

W

0.82

Specialty Retail Industry

Max
2.83
Q3
1.89
Median
1.39
Q1
1.11
Min
0.64

W’s Current Ratio of 0.82 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MCD vs. W: A comparison of their Current Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MCD

40.64

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
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.

W

136.90

Specialty Retail Industry

Max
3.02
Q3
1.57
Median
0.64
Q1
0.20
Min
0.00

With a Debt-to-Equity Ratio of 136.90, W operates with exceptionally high leverage compared to the Specialty Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

MCD vs. W: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Interest Coverage Ratio (TTM)

MCD

9.26

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
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.

W

-15.62

Specialty Retail Industry

Max
48.12
Q3
35.95
Median
14.13
Q1
3.61
Min
-36.00

W has a negative Interest Coverage Ratio of -15.62. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MCD vs. W: A comparison of their Interest Coverage Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Financial Strength at a Glance

SymbolMCDW
Current Ratio (MRQ)1.300.82
Quick Ratio (MRQ)1.030.67
Debt-to-Equity Ratio (MRQ)40.64136.90
Interest Coverage Ratio (TTM)9.26-15.62

Growth

Revenue Growth

MCD vs. W: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MCD vs. W: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MCD

2.32%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
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.

W

0.00%

Specialty Retail Industry

Max
6.53%
Q3
2.69%
Median
1.08%
Q1
0.00%
Min
0.00%

W 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.

MCD vs. W: A comparison of their Dividend Yield (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Dividend Payout Ratio (TTM)

MCD

59.51%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
Q1
0.00%
Min
0.00%

MCD’s Dividend Payout Ratio of 59.51% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

W

0.00%

Specialty Retail Industry

Max
165.81%
Q3
80.94%
Median
31.61%
Q1
0.00%
Min
0.00%

W 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.

MCD vs. W: A comparison of their Dividend Payout Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Dividend at a Glance

SymbolMCDW
Dividend Yield (TTM)2.32%0.00%
Dividend Payout Ratio (TTM)59.51%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

MCD

25.69

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

MCD’s P/E Ratio of 25.69 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.

W

--

Specialty Retail Industry

Max
48.56
Q3
29.15
Median
22.00
Q1
15.46
Min
7.95

P/E Ratio data for W is currently unavailable.

MCD vs. W: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Price-to-Sales Ratio (TTM)

MCD

8.27

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

With a P/S Ratio of 8.27, 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.

W

0.79

Specialty Retail Industry

Max
5.08
Q3
2.69
Median
1.23
Q1
0.48
Min
0.09

W’s P/S Ratio of 0.79 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MCD vs. W: A comparison of their Price-to-Sales Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Price-to-Book Ratio (MRQ)

MCD

160.46

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

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.

W

1,989.32

Specialty Retail Industry

Max
16.93
Q3
7.98
Median
3.69
Q1
1.79
Min
0.21

At 1,989.32, W’s P/B Ratio is at an extreme premium to the Specialty Retail 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.

MCD vs. W: A comparison of their Price-to-Book Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Specialty Retail industry benchmarks.

Valuation at a Glance

SymbolMCDW
Price-to-Earnings Ratio (TTM)25.69--
Price-to-Sales Ratio (TTM)8.270.79
Price-to-Book Ratio (MRQ)160.461,989.32
Price-to-Free Cash Flow Ratio (TTM)31.2628.62