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

A side-by-side look at how these two compare on valuation, profitability and shareholder returns.

McDonald’s vs Starbucks at a glance

Both companies operate in the Consumer Discretionary sector, so these figures are broadly like-for-like.

MetricMCDSBUX
Market cap$185.68B$122.28B
Price$260.06$107.26
P/E ratio (TTM)25.3651.05
P/B ratio (MRQ)00
P/S ratio (TTM)8.082.55
Revenue growth (1Y)3.72%2.79%
Return on equity (TTM)-478.38%-22.93%
Return on invested capital (TTM)25.05%10.51%
Gross margin (TTM)57.35%20.36%
Net margin (TTM)31.62%3.89%
Dividend yield (TTM)2.86%2.32%

How they differ

McDonald’s is the larger company at $185.68B versus $122.28B — about 1.5x the size.

On trailing earnings, McDonald’s is the cheaper of the two at 25.36 against 51.05 for Starbucks.

On sales, Starbucks is the cheaper of the two at 2.55 against 8.08 for McDonald’s.

McDonald’s leads on revenue growth over the past year, 3.72% against 2.79%.

McDonald’s leads on return on invested capital, 25.05% against 10.51%.

McDonald’s leads on gross margin, 57.35% against 20.36%.

McDonald’s offers the higher yield at 2.86% against 2.32%.

Go deeper

Ratios describe the past. Whether either is worth owning depends on what you pay today.

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