McDonald's Corporation (MCD) vs Starbucks Corporation (SBUX)

McDonald's Corporation and Starbucks Corporation are both Restaurants companies. McDonald's Corporation is the larger, with a market value of $168.6B against $106.5B — 1.6× the size. McDonald's Corporation trades at the lower P/E: 19.2× against 54.5×. McDonald's Corporation grew revenue faster over the last twelve months: 6.30% against 4.49%. McDonald's Corporation has the higher net margin (31.7% vs 5.17%) and the lower return on invested capital (21.1% vs 93.0%). Both pay a dividend; Starbucks Corporation yields more (2.39% vs 2.31%). Across the 22 metrics below, McDonald's Corporation leads on 13 and Starbucks Corporation on 9.

Valuation

Metric MCD SBUX Restaurants median
P/E 19.21 54.52 22.14
P/S 6.05 2.82 0.91
P/B n/m n/m 2.01
Price to free cash flow 21.15 29.68 19.41
EV/EBITDA 13.84 25.36 11.48
EV/Sales 7.53 3.07 1.20
Earnings yield 5.21% 1.83% 2.30%
Free cash flow yield 4.73% 3.37% 3.92%

Profitability

Metric MCD SBUX Restaurants median
Gross margin 57.38% 67.70% 38.77%
Operating margin 46.22% 7.77% 4.30%
Net margin 31.72% 5.17% 1.85%
Free cash flow margin 28.63% 9.50% 3.12%
Return on equity (464.67%) (25.84%) 3.07%
Return on assets 14.71% 6.40% 1.50%
Return on invested capital 21.05% 92.99% 3.14%

Growth

Metric MCD SBUX Restaurants median
Revenue growth (TTM) 6.30% 4.49% 5.16%
EPS growth (last fiscal year) 4.92% (50.76%) —
Revenue growth, 5-year CAGR 6.96% 9.60% 10.57%
Net income growth, 5-year CAGR 12.60% 14.87% 0.00%

Health

Metric MCD SBUX Restaurants median
Debt to equity (38.97) (1.73) 0.10
Current ratio 1.08 0.76 0.81
Net debt to EBITDA 2.69 2.68 0.43

Dividend

Metric MCD SBUX Restaurants median
Dividend yield 2.31% 2.39% 2.32%
Payout ratio 0.55 0.63 0.00

Size

Metric MCD SBUX Restaurants median
Market cap 168.57b 106.50b 482.66m

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