Costco vs McDonald's
Costco Wholesale and McDonald's Corp. This page compares their business models, financial performance, and market context in a neutral, accessible way. It explains how each company creates value, operates at scale, and competes in its markets for a broader understanding. Educational content, not financial advice.
Costco Wholesale and McDonald's Corp. This page compares their business models, financial performance, and market context in a neutral, accessible way. It explains how each company creates value, oper...
Why It's Moving
Costco Shares Surge to 19-Week High on Robust Q1 Earnings and Analyst Upgrades
- Q1 comparable sales hit 6.4% (7.1% excluding gas), driven by broad-based strength in non-foods, foods, and fresh categories, plus 20.5% digitally enabled growth.
- Mizuho upgraded to Outperform with $1,000 target, spotlighting accelerating trade-up to premium memberships at 2-3x total adds and adding COST to Top Picks.
- Deutsche Bank initiated Buy at $1,044, citing tailwinds like 2026 stimulus despite food disinflation and value-focused spending.
McDonald's Stock Powers Higher Amid Strong Recent Gains in Restaurant Sector
- Recent trading showed MCD ending at $309.25 on Jan 23, up 1.05% from prior day, signaling investor confidence in ongoing operations.
- 30-day high hit $313.43, indicating upward momentum as the stock outperforms broader market fluctuations.
- Stable $220.53B market cap through late January underscores MCD's dominant position among top restaurant stocks.
Costco Shares Surge to 19-Week High on Robust Q1 Earnings and Analyst Upgrades
- Q1 comparable sales hit 6.4% (7.1% excluding gas), driven by broad-based strength in non-foods, foods, and fresh categories, plus 20.5% digitally enabled growth.
- Mizuho upgraded to Outperform with $1,000 target, spotlighting accelerating trade-up to premium memberships at 2-3x total adds and adding COST to Top Picks.
- Deutsche Bank initiated Buy at $1,044, citing tailwinds like 2026 stimulus despite food disinflation and value-focused spending.
McDonald's Stock Powers Higher Amid Strong Recent Gains in Restaurant Sector
- Recent trading showed MCD ending at $309.25 on Jan 23, up 1.05% from prior day, signaling investor confidence in ongoing operations.
- 30-day high hit $313.43, indicating upward momentum as the stock outperforms broader market fluctuations.
- Stable $220.53B market cap through late January underscores MCD's dominant position among top restaurant stocks.
Investment Analysis
Costco
COST
Pros
- Costco reported robust revenue growth of 8.17% in 2025, reaching $275.24 billion, showing strong operational performance.
- The company’s membership fees rose by 6% year-on-year, indicating loyal customer retention and steady recurring revenue.
- Costco maintains strong financial health with more cash than debt on its balance sheet, supporting resilience and stability.
Considerations
- Discounted Cash Flow analysis suggests Costco is overvalued by approximately 35.5%, indicating a potentially stretched current share price.
- The operational margin declined slightly from 3.4% to 3.2%, reflecting margin pressure due to a pricing strategy focused on customer loyalty.
- The stock trades at a high P/E ratio near 50, which may be expensive relative to near-term earnings growth and valuation.
McDonald's
MCD
Pros
- McDonald’s benefits from a globally recognized brand and widespread geographic footprint, providing strong competitive positioning.
- The company has consistent cash flow generation from its franchise model, enhancing profitability and financial flexibility.
- McDonald’s continues to invest in digital ordering and delivery, which are significant growth drivers in the fast-food industry.
Considerations
- McDonald’s faces significant exposure to regulatory risks and costs tied to labor laws, health regulations, and minimum wage increases globally.
- The company’s growth can be cyclical and sensitive to macroeconomic factors, particularly consumer discretionary spending trends.
- Rising commodity costs and inflationary pressures remain execution risks, potentially compressing margins if not well managed.
Related Market Insights
The Defensive Investor's Guide: Building a Sleep Well At Night Portfolio
Invest in Nemo's Sleep Well At Night Portfolio. Discover blue-chip defensive stocks for stability, consistent dividends, and market protection. Essential businesses for any economy.
Aimee Silverwood | Financial Analyst
July 25, 2025
The Fortress Builders: Why Smart Money Backs Companies That Play the Long Game
Discover 15 'Fortress Builders' like Microsoft, Amazon & Alphabet. Learn how they build unbreachable competitive moats for long-term dominance. Invest with Nemo from $1.
Aimee Silverwood | Financial Analyst
July 25, 2025
Related Market Insights
The Defensive Investor's Guide: Building a Sleep Well At Night Portfolio
Invest in Nemo's Sleep Well At Night Portfolio. Discover blue-chip defensive stocks for stability, consistent dividends, and market protection. Essential businesses for any economy.
Aimee Silverwood | Financial Analyst
July 25, 2025
The Fortress Builders: Why Smart Money Backs Companies That Play the Long Game
Discover 15 'Fortress Builders' like Microsoft, Amazon & Alphabet. Learn how they build unbreachable competitive moats for long-term dominance. Invest with Nemo from $1.
Aimee Silverwood | Financial Analyst
July 25, 2025
Costco (COST) Next Earnings Date
Costco Wholesale (COST) is scheduled to report its next earnings on Thursday, March 5, 2026, after market close. This release will cover the second quarter of fiscal 2026 (Q2 2026), including February sales results. The date is confirmed by the company's investor relations calendar and aligns with analyst estimates based on historical patterns.
McDonald's (MCD) Next Earnings Date
McDonald's next earnings report is expected on February 11, 2026, before market open. This release will cover the company's Q4 2025 financial results. Analysts are currently projecting earnings per share of approximately $3.01 to $3.03 for the period. This timing aligns with McDonald's historical quarterly earnings announcement schedule.
Costco (COST) Next Earnings Date
Costco Wholesale (COST) is scheduled to report its next earnings on Thursday, March 5, 2026, after market close. This release will cover the second quarter of fiscal 2026 (Q2 2026), including February sales results. The date is confirmed by the company's investor relations calendar and aligns with analyst estimates based on historical patterns.
McDonald's (MCD) Next Earnings Date
McDonald's next earnings report is expected on February 11, 2026, before market open. This release will cover the company's Q4 2025 financial results. Analysts are currently projecting earnings per share of approximately $3.01 to $3.03 for the period. This timing aligns with McDonald's historical quarterly earnings announcement schedule.
Which Baskets Do They Appear In?
Sleep Well At Night Portfolio
A collection of premium defensive stocks expertly selected by our analysts to help protect your investments during market turbulence. These industry giants offer stability through consistent earnings, reliable dividends, and proven resilience in any economic climate.
Published: June 18, 2025
Explore BasketMoat Wideners
These companies are building unbeatable competitive advantages that competitors simply can't match. Our analysts have carefully selected businesses that prioritize long-term market dominance over quick profits, creating exceptional durability and growth potential.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
Sleep Well At Night Portfolio
A collection of premium defensive stocks expertly selected by our analysts to help protect your investments during market turbulence. These industry giants offer stability through consistent earnings, reliable dividends, and proven resilience in any economic climate.
Published: June 18, 2025
Explore BasketMoat Wideners
These companies are building unbeatable competitive advantages that competitors simply can't match. Our analysts have carefully selected businesses that prioritize long-term market dominance over quick profits, creating exceptional durability and growth potential.
Published: June 17, 2025
Explore BasketBuy COST or MCD in Nemo
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Costco vs TJX
Costco vs TJX
Costco vs Nike
Costco vs Nike: a neutral business comparison
Costco vs Toyota
Costco vs Toyota: A comparison of business models