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MCD vs. YUMC: McDonald's vs. Yum China Stock Comparison

How do McDonald's (MCD) and Yum China (YUMC) 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 China (YUMC) 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 China (YUMC)
Profile ItemMCDYUMC
NameMcDonald's CorporationYum China Holdings, Inc.
Country/RegionUnited StatesChina
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer ServicesConsumer Services
GICS IndustryHotels, Restaurants & LeisureHotels, Restaurants & Leisure
GICS Sub-IndustryRestaurantsRestaurants
Market Capitalization195.16 billion USD16.79 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 5, 1966October 17, 2016
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MCD
YUMC
GSPC
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McDonald's (MCD) vs. Yum China (YUMC), 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 China (YUMC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for McDonald's (MCD) and Yum China (YUMC). 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 China (YUMC)
MetricMCDYUMC
Total Return (1Y)-3.33%17.02%
Total Return (3Y, Annualized)4.39%6.80%
Total Return (5Y, Annualized)4.66%-0.60%

Risk Profile

Drawdown History

MCD
YUMC
GSPC
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McDonald's (MCD) vs. Yum China (YUMC), 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 China (YUMC). 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 China (YUMC)
MetricMCDYUMC
Volatility (1Y, Annualized)20.82%25.40%
Beta (5Y)0.390.01
Max Drawdown (5Y)-30.98%-53.84%
Avg. Volume (3M)5.39M1.59M

Risk-Adjusted Performance

Risk-Return Positioning

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MCD and YUMC 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 China (YUMC)
MetricMCDYUMC
Sharpe Ratio (1Y)-0.370.50
Sortino Ratio (1Y)-0.540.77

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Yum China (YUMC) earns 17.35% on shareholders’ equity, ranked against its industry; McDonald's (MCD) has no ROE this period.

MCD

Consumer Services industry group

--

Max
76.75%
Q3
34.07%
Median
15.90%
Q1
3.23%
Min
-40.61%
MCD
--

YUMC

Consumer Services industry group

17.35%

Max
76.75%
Q3
34.07%
YUMC
17.35%
Median
15.90%
Q1
3.23%
Min
-40.61%
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McDonald's (MCD) vs. Yum China (YUMC): MCD does not report ROE, so it has no value marker; YUMC is benchmarked against the Consumer Services industry group.

Net Margin (TTM)

McDonald's (MCD) at 32.38% converts revenue to bottom-line profit above its industry’s benchmark range, while Yum China (YUMC) at 7.90% keeps roughly the typical share for its industry.

MCD

Consumer Services industry group

32.38%

MCD
32.38%
Max
25.52%
Q3
12.95%
Median
6.63%
Q1
1.46%
Min
-14.36%

YUMC

Consumer Services industry group

7.90%

Max
25.52%
Q3
12.95%
YUMC
7.90%
Median
6.63%
Q1
1.46%
Min
-14.36%
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their net margin against the Consumer Services industry group benchmark.

Operating Margin (TTM)

McDonald's (MCD) at 48.29% operates in the top operating margin quartile, ahead of Yum China (YUMC) at 13.09%, which runs around its industry’s norm.

MCD

Consumer Services industry group

48.29%

Max
49.05%
MCD
48.29%
Q3
24.35%
Median
14.23%
Q1
5.67%
Min
-16.47%

YUMC

Consumer Services industry group

13.09%

Max
49.05%
Q3
24.35%
Median
14.23%
YUMC
13.09%
Q1
5.67%
Min
-16.47%
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their operating margin against the Consumer Services industry group benchmark.

Profitability Metrics

Profitability metrics for McDonald's (MCD) and Yum China (YUMC)
MetricMCDYUMC
ROE (TTM)--17.35%
ROA (TTM)--7.81%
Net Margin (TTM)32.38%7.90%
Operating Margin (TTM)48.29%13.09%
Gross Margin (TTM)57.62%20.45%

Growth

Revenue Growth

Both McDonald's (MCD) at 3.72% and Yum China (YUMC) at 4.37% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Both McDonald's (MCD) at 4.92% and Yum China (YUMC) at 7.73% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for McDonald's (MCD) and Yum China (YUMC)
MetricMCDYUMC
Revenue Growth (YoY)3.72%4.37%
Revenue Growth (3Y CAGR)5.06%7.23%
EPS Growth (YoY)4.92%7.73%
EPS Growth (3Y CAGR)12.78%34.14%

Financial Strength

Current Ratio (MRQ)

Short-term liquidity can only be read on one side of this pairing: Yum China (YUMC) shows current ratio of 0.67 against its industry benchmark, while McDonald's (MCD) has no reading this period.

MCD

Consumer Services industry group

--

Max
3.41
Q3
1.85
Median
1.06
Q1
0.72
Min
0.22
MCD
--

YUMC

Consumer Services industry group

0.67

Max
3.41
Q3
1.85
Median
1.06
Q1
0.72
YUMC
0.67
Min
0.22
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McDonald's (MCD) vs. Yum China (YUMC): MCD does not report current ratio, so it has no value marker; YUMC is benchmarked against the Consumer Services industry group.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Yum China (YUMC) carries debt-to-equity ratio of 0.54 against its industry range, while McDonald's (MCD) reports no figure this period.

MCD

Consumer Services industry group

--

Max
6.12
Q3
2.93
Median
1.29
Q1
0.37
Min
0.01
MCD
--

YUMC

Consumer Services industry group

0.54

Max
6.12
Q3
2.93
Median
1.29
YUMC
0.54
Q1
0.37
Min
0.01
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McDonald's (MCD) vs. Yum China (YUMC): MCD does not report debt-to-equity ratio, so it has no value marker; YUMC is benchmarked against the Consumer Services industry group.

Financial Strength Metrics

Financial strength metrics for McDonald's (MCD) and Yum China (YUMC)
MetricMCDYUMC
Current Ratio (MRQ)--0.67
Debt / Equity (MRQ)--0.54
Net Debt / EBITDA3.570.85

Dividends

Dividend Yield (TTM)

Both McDonald's (MCD) at 2.68% and Yum China (YUMC) at 2.23% offer top-quartile dividend income relative to share price within their industries.

MCD

Consumer Services industry group

2.68%

Max
4.10%
MCD
2.68%
Q3
1.82%
Median
0.00%
Q1
0.00%
Min
0.00%

YUMC

Consumer Services industry group

2.23%

Max
4.10%
YUMC
2.23%
Q3
1.82%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their dividend yield against the Consumer Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both McDonald's (MCD) at 58.86% and Yum China (YUMC) at 38.54% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

MCD

Consumer Services industry group

58.86%

Max
89.80%
MCD
58.86%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%

YUMC

Consumer Services industry group

38.54%

Max
89.80%
YUMC
38.54%
Q3
36.83%
Median
0.00%
Q1
0.00%
Min
0.00%
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their payout ratio against the Consumer Services industry group benchmark.

Dividend Metrics

Dividend metrics for McDonald's (MCD) and Yum China (YUMC)
MetricMCDYUMC
Dividend Yield (TTM)2.68%2.23%
Dividend Payout Ratio (TTM)58.86%38.54%

Valuation

P/E Ratio (TTM)

Both McDonald's (MCD) at 21.88 and Yum China (YUMC) at 17.34 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

21.88

Max
71.70
Q3
37.12
MCD
21.88
Median
21.88
Q1
13.00
Min
5.72

YUMC

Consumer Services industry group

17.34

Max
71.70
Q3
37.12
Median
21.88
YUMC
17.34
Q1
13.00
Min
5.72
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their P/E ratio against the Consumer Services industry group benchmark.

P/S Ratio (TTM)

Yum China (YUMC) at 1.32 prices around its industry’s typical P/S ratio, while McDonald's (MCD) at 7.02 clears its benchmark range — MCD looks notably rich on sales.

MCD

Consumer Services industry group

7.02

MCD
7.02
Max
6.40
Q3
3.01
Median
1.54
Q1
0.74
Min
0.08

YUMC

Consumer Services industry group

1.32

Max
6.40
Q3
3.01
Median
1.54
YUMC
1.32
Q1
0.74
Min
0.08
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their P/S ratio against the Consumer Services industry group benchmark.

P/B Ratio (MRQ)

McDonald's (MCD) reports a negative P/B ratio of -191.23, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Yum China (YUMC) reports 3.19, ranking against industry peers normally.

MCD

Consumer Services industry group

-191.23

Max
12.02
Q3
5.58
Median
2.37
Q1
1.09
Min
-4.51
MCD
-191.23

YUMC

Consumer Services industry group

3.19

Max
12.02
Q3
5.58
YUMC
3.19
Median
2.37
Q1
1.09
Min
-4.51
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McDonald's (MCD) vs. Yum China (YUMC): A comparison of their P/B ratio against the Consumer Services industry group benchmark.

Valuation Metrics

Valuation metrics for McDonald's (MCD) and Yum China (YUMC)
MetricMCDYUMC
P/E Ratio (TTM)21.8817.34
P/S Ratio (TTM)7.021.32
P/B Ratio (MRQ)-191.233.19
Free Cash Flow Yield (TTM)---2.30%