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MCD vs. YUM: McDonald's vs. Yum! Brands Stock Comparison

How do McDonald's (MCD) and Yum! Brands (YUM) 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 Yum! Brands (YUM) are both classified in the Restaurants sub-industry within the broader Hotels, Restaurants & Leisure industry, placing them in the closest GICS peer bucket.

Company profile comparison for McDonald's (MCD) and Yum! Brands (YUM)
Profile ItemMCDYUM
NameMcDonald's CorporationYum! Brands, Inc.
Country/RegionUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer ServicesConsumer Services
GICS IndustryHotels, Restaurants & LeisureHotels, Restaurants & Leisure
GICS Sub-IndustryRestaurantsRestaurants
Market Capitalization187.51 billion USD40.77 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 5, 1966September 17, 1997
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MCD
YUM
GSPC
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McDonald's (MCD) vs. Yum! Brands (YUM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for McDonald's (MCD) and Yum! Brands (YUM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for McDonald's (MCD) and Yum! Brands (YUM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
Total Return (1Y)-8.60%1.81%
Total Return (3Y, Annualized)-1.42%4.91%
Total Return (5Y, Annualized)4.64%7.00%

Risk Profile

Drawdown History

MCD
YUM
GSPC
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McDonald's (MCD) vs. Yum! Brands (YUM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for McDonald's (MCD) and Yum! Brands (YUM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
Volatility (1Y, Annualized)18.07%22.75%
Beta (5Y)0.410.56
Max Drawdown (5Y)-21.66%-23.10%
Avg. Volume (3M)4.44M2.27M

Risk-Adjusted Performance

Risk-Return Positioning

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MCD and YUM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
Sharpe Ratio (1Y)-0.70-0.10
Sortino Ratio (1Y)-0.98-0.14

Profitability

ROE (TTM)

Neither McDonald's (MCD) nor Yum! Brands (YUM) reports a ROE value for this period, so a direct comparison isn’t possible.

MCD

Consumer Services industry group

--

Max
53.72%
Q3
29.07%
Median
13.03%
Q1
3.56%
Min
-26.11%
MCD
--

YUM

Consumer Services industry group

--

Max
53.72%
Q3
29.07%
Median
13.03%
Q1
3.56%
Min
-26.11%
YUM
--
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McDonald's (MCD) vs. Yum! Brands (YUM): Neither stock reports ROE, so the chart shows available benchmark boxes without value markers.

Net Margin (TTM)

McDonald's (MCD) at 31.62% keeps the most of each sales dollar — above its industry’s net margin range — and Yum! Brands (YUM) at 20.48% also retains a top-quartile share.

MCD

Consumer Services industry group

31.62%

MCD
31.62%
Max
24.36%
Q3
12.28%
Median
6.05%
Q1
1.13%
Min
-15.48%

YUM

Consumer Services industry group

20.48%

Max
24.36%
YUM
20.48%
Q3
12.28%
Median
6.05%
Q1
1.13%
Min
-15.48%
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

Both McDonald's (MCD) at 44.25% and Yum! Brands (YUM) at 31.08% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MCD

Consumer Services industry group

44.25%

MCD
44.25%
Max
44.25%
Q3
20.99%
Median
11.48%
Q1
3.39%
Min
-20.31%

YUM

Consumer Services industry group

31.08%

Max
44.25%
YUM
31.08%
Q3
20.99%
Median
11.48%
Q1
3.39%
Min
-20.31%
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
ROE (TTM)----
ROA (TTM)13.56%23.30%
Net Margin (TTM)31.62%20.48%
Operating Margin (TTM)44.25%31.08%
Gross Margin (TTM)57.35%45.66%

Growth

Revenue Growth

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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their Revenue Growth across different time periods.

Revenue Growth Metrics

Revenue growth metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
Revenue Growth (YoY)3.72%8.81%
Revenue Growth (3Y CAGR)5.06%6.28%

EPS Growth

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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their EPS Growth across different time periods.

EPS Growth Metrics

EPS growth metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
EPS Growth (YoY)4.92%6.32%
EPS Growth (3Y CAGR)12.78%6.69%

Financial Strength

Current Ratio (MRQ)

McDonald's (MCD) at 1.14 keeps current ratio within its industry’s typical mid-range, while Yum! Brands (YUM) at 0.65 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for YUM.

MCD

Consumer Services industry group

1.14

Max
3.42
Q3
1.79
MCD
1.14
Median
0.99
Q1
0.69
Min
0.20

YUM

Consumer Services industry group

0.65

Max
3.42
Q3
1.79
Median
0.99
Q1
0.69
YUM
0.65
Min
0.20
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their current ratio against the Consumer Services industry group benchmark.

Debt / Equity (MRQ)

Neither McDonald's (MCD) nor Yum! Brands (YUM) reports a debt-to-equity ratio value for this period, so a direct comparison isn’t possible.

MCD

Consumer Services industry group

--

Max
7.23
Q3
3.20
Median
1.27
Q1
0.35
Min
0.01
MCD
--

YUM

Consumer Services industry group

--

Max
7.23
Q3
3.20
Median
1.27
Q1
0.35
Min
0.01
YUM
--
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McDonald's (MCD) vs. Yum! Brands (YUM): Neither stock reports debt-to-equity ratio, so the chart shows available benchmark boxes without value markers.

Financial Strength Metrics

Financial strength metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
Current Ratio (MRQ)1.140.65
Debt / Equity (MRQ)----
Net Debt / EBITDA3.614.16

Dividends

Dividend Yield (TTM)

McDonald's (MCD) at 2.71% delivers top-quartile income for its industry, while Yum! Brands (YUM) at 1.43% pays a more typical yield — both are credible income propositions, MCD the richer one.

MCD

Consumer Services industry group

2.71%

Max
3.63%
MCD
2.71%
Q3
1.50%
Median
0.00%
Q1
0.00%
Min
0.00%

YUM

Consumer Services industry group

1.43%

Max
3.63%
Q3
1.50%
YUM
1.43%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both McDonald's (MCD) at 59.85% and Yum! Brands (YUM) at 46.45% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

MCD

Consumer Services industry group

59.85%

Max
81.13%
MCD
59.85%
Q3
33.89%
Median
0.00%
Q1
0.00%
Min
0.00%

YUM

Consumer Services industry group

46.45%

Max
81.13%
YUM
46.45%
Q3
33.89%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
Dividend Yield (TTM)2.71%1.43%
Dividend Payout Ratio (TTM)59.85%46.45%

Valuation

P/E Ratio (TTM)

Both McDonald's (MCD) at 22.07 and Yum! Brands (YUM) at 23.86 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

22.07

Max
63.19
Q3
39.27
Median
23.91
MCD
22.07
Q1
17.01
Min
3.88

YUM

Consumer Services industry group

23.86

Max
63.19
Q3
39.27
Median
23.91
YUM
23.86
Q1
17.01
Min
3.88
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Yum! Brands (YUM) at 4.80 sits in the upper P/S ratio quartile, and McDonald's (MCD) at 6.83 prices even higher, above its industry range.

MCD

Consumer Services industry group

6.83

MCD
6.83
Max
6.50
Q3
3.22
Median
1.70
Q1
0.84
Min
0.06

YUM

Consumer Services industry group

4.80

Max
6.50
YUM
4.80
Q3
3.22
Median
1.70
Q1
0.84
Min
0.06
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

Both McDonald's (MCD) at -145.81 and Yum! Brands (YUM) at -5.59 report negative P/B ratio values, meaning both companies have negative book equity — neither multiple is meaningful for valuation.

MCD

Consumer Services industry group

-145.81

Max
12.78
Q3
5.77
Median
2.51
Q1
1.07
Min
-5.59
MCD
-145.81

YUM

Consumer Services industry group

-5.59

Max
12.78
Q3
5.77
Median
2.51
Q1
1.07
YUM
-5.59
Min
-5.59
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McDonald's (MCD) vs. Yum! Brands (YUM): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for McDonald's (MCD) and Yum! Brands (YUM)
MetricMCDYUM
P/E Ratio (TTM)22.0723.86
P/S Ratio (TTM)6.834.80
P/B Ratio (MRQ)-145.81-5.59
Free Cash Flow Yield (TTM)3.17%3.09%