Domino's Pizza Inc (DPZ) vs McDonald's Corporation (MCD)

Domino's Pizza Inc and McDonald's Corporation are both Restaurants companies. McDonald's Corporation is the larger, with a market value of $168.6B against $9.7B — 17.4× the size. Domino's Pizza Inc trades at the lower P/E: 16.6× against 19.2×. McDonald's Corporation grew revenue faster over the last twelve months: 6.30% against 5.16%. McDonald's Corporation has the higher net margin (31.7% vs 11.9%) and the lower return on invested capital (21.1% vs 111.8%). Both pay a dividend; McDonald's Corporation yields more (2.31% vs 1.14%). Across the 22 metrics below, Domino's Pizza Inc leads on 12 and McDonald's Corporation on 10.

Valuation

Metric DPZ MCD Restaurants median
P/E 16.57 19.21 22.14
P/S 1.93 6.05 0.91
P/B n/m n/m 2.01
Price to free cash flow 14.51 21.15 19.41
EV/EBITDA 13.23 13.84 11.48
EV/Sales 2.83 7.53 1.20
Earnings yield 6.03% 5.21% 2.30%
Free cash flow yield 6.89% 4.73% 3.92%

Profitability

Metric DPZ MCD Restaurants median
Gross margin 40.02% 57.38% 38.77%
Operating margin 19.52% 46.22% 4.30%
Net margin 11.86% 31.72% 1.85%
Free cash flow margin 13.30% 28.63% 3.12%
Return on equity (14.99%) (464.67%) 3.07%
Return on assets 33.38% 14.71% 1.50%
Return on invested capital 111.81% 21.05% 3.14%

Growth

Metric DPZ MCD Restaurants median
Revenue growth (TTM) 5.16% 6.30% 5.16%
EPS growth (last fiscal year) 5.27% 4.92% —
Revenue growth, 5-year CAGR 3.71% 6.96% 10.57%
Net income growth, 5-year CAGR 4.14% 12.60% 0.00%

Health

Metric DPZ MCD Restaurants median
Debt to equity (1.23) (38.97) 0.10
Current ratio 1.54 1.08 0.81
Net debt to EBITDA 4.27 2.69 0.43

Dividend

Metric DPZ MCD Restaurants median
Dividend yield 1.14% 2.31% 2.32%
Payout ratio 0.35 0.55 0.00

Size

Metric DPZ MCD Restaurants median
Market cap 9.69b 168.57b 482.66m

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