McDonald’s Corporation (MCD)vsStarbucks Corporation (SBUX)
MCD
McDonald’s Corporation
$284.10
+0.38%
CONSUMER CYCLICAL · Cap: $201.95B
SBUX
Starbucks Corporation
$104.97
-0.88%
CONSUMER CYCLICAL · Cap: $119.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 43% more annual revenue ($38.47B vs $26.88B). MCD leads profitability with a 31.9% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.78. MCD earns a higher WallStSmart Score of 56/100 (C).
MCD
Buy56
out of 100
Grade: C
SBUX
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.2%
Fair Value
$154.01
Current Price
$284.10
$130.09 premium
Margin of Safety
+26.6%
Fair Value
$135.09
Current Price
$104.97
$30.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Large-cap with strong market position
Earnings expanding 32.6% YoY
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.
Bull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 80.8x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
MCD profiles as a mature stock while SBUX is a value play — different risk/reward profiles.
SBUX carries more volatility with a beta of 1.01 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (56/100 vs 49/100), backed by strong 31.9% margins. SBUX offers better value entry with a 26.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
Visit Website →Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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