MCD vs. YUM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCD and YUM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MCD | YUM |
|---|---|---|
| Company Name | McDonald's Corporation | Yum! Brands, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Hotels, Restaurants & Leisure |
| Market Capitalization | 223.67 billion USD | 40.77 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 5, 1966 | September 17, 1997 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MCD and YUM 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 | YUM |
|---|---|---|
| 5-Day Price Return | 0.81% | -3.37% |
| 13-Week Price Return | -0.28% | 0.96% |
| 26-Week Price Return | 3.81% | -0.94% |
| 52-Week Price Return | 8.38% | 7.41% |
| Month-to-Date Return | 4.46% | 1.90% |
| Year-to-Date Return | 8.12% | 9.49% |
| 10-Day Avg. Volume | 3.26M | 1.96M |
| 3-Month Avg. Volume | 3.46M | 1.97M |
| 3-Month Volatility | 15.33% | 20.58% |
| Beta | 0.52 | 0.73 |
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.
YUM
117.64%
Hotels, Restaurants & Leisure Industry
- Max
- 83.01%
- Q3
- 39.51%
- Median
- 17.38%
- Q1
- 5.32%
- Min
- -45.92%
YUM’s Return on Equity of 117.64% 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.
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.
YUM
18.11%
Hotels, Restaurants & Leisure Industry
- Max
- 26.45%
- Q3
- 14.67%
- Median
- 8.69%
- Q1
- 3.34%
- Min
- -11.30%
A Net Profit Margin of 18.11% places YUM in the upper quartile for the Hotels, Restaurants & Leisure industry, signifying strong profitability and more effective cost management than most of its peers.
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.
YUM
30.93%
Hotels, Restaurants & Leisure Industry
- Max
- 38.76%
- Q3
- 21.15%
- Median
- 14.20%
- Q1
- 6.43%
- Min
- -14.56%
An Operating Profit Margin of 30.93% places YUM 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.
Profitability at a Glance
| Symbol | MCD | YUM |
|---|---|---|
| Return on Equity (TTM) | 95.13% | 117.64% |
| Return on Assets (TTM) | 14.78% | 21.40% |
| Net Profit Margin (TTM) | 32.21% | 18.11% |
| Operating Profit Margin (TTM) | 45.80% | 30.93% |
| Gross Profit Margin (TTM) | 57.00% | 46.48% |
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.
YUM
0.82
Hotels, Restaurants & Leisure Industry
- Max
- 2.68
- Q3
- 1.62
- Median
- 1.11
- Q1
- 0.74
- Min
- 0.19
YUM’s Current Ratio of 0.82 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
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.
YUM
30.97
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 30.97, YUM 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.
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.
YUM
4.68
Hotels, Restaurants & Leisure Industry
- Max
- 26.88
- Q3
- 11.95
- Median
- 3.87
- Q1
- 1.19
- Min
- -11.84
YUM’s Interest Coverage Ratio of 4.68 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 | YUM |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 0.82 |
| Quick Ratio (MRQ) | 1.03 | 0.64 |
| Debt-to-Equity Ratio (MRQ) | 40.64 | 30.97 |
| Interest Coverage Ratio (TTM) | 9.26 | 4.68 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MCD
2.24%
Hotels, Restaurants & Leisure Industry
- Max
- 5.88%
- Q3
- 2.37%
- Median
- 0.68%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Yield of 2.24% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.
YUM
1.91%
Hotels, Restaurants & Leisure Industry
- Max
- 5.88%
- Q3
- 2.37%
- Median
- 0.68%
- Q1
- 0.00%
- Min
- 0.00%
YUM’s Dividend Yield of 1.91% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.
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.
YUM
53.77%
Hotels, Restaurants & Leisure Industry
- Max
- 127.31%
- Q3
- 56.79%
- Median
- 19.58%
- Q1
- 0.00%
- Min
- 0.00%
YUM’s Dividend Payout Ratio of 53.77% is within the typical range for the Hotels, Restaurants & Leisure industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MCD | YUM |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 1.91% |
| Dividend Payout Ratio (TTM) | 59.51% | 53.77% |
Valuation
Price-to-Earnings Ratio (TTM)
MCD
26.59
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 26.59 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.
YUM
28.18
Hotels, Restaurants & Leisure Industry
- Max
- 59.44
- Q3
- 33.98
- Median
- 22.25
- Q1
- 15.53
- Min
- 7.61
YUM’s P/E Ratio of 28.18 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.
Price-to-Sales Ratio (TTM)
MCD
8.56
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 8.56, 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.
YUM
5.10
Hotels, Restaurants & Leisure Industry
- Max
- 7.74
- Q3
- 3.88
- Median
- 2.05
- Q1
- 1.19
- Min
- 0.17
YUM’s P/S Ratio of 5.10 is in the upper echelon for the Hotels, Restaurants & Leisure industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
YUM
208.10
Hotels, Restaurants & Leisure Industry
- Max
- 20.90
- Q3
- 9.78
- Median
- 4.29
- Q1
- 2.22
- Min
- 0.47
At 208.10, YUM’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.
Valuation at a Glance
| Symbol | MCD | YUM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.59 | 28.18 |
| Price-to-Sales Ratio (TTM) | 8.56 | 5.10 |
| Price-to-Book Ratio (MRQ) | 160.46 | 208.10 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.36 | 26.29 |