Starbucks vs McDonald's

This page offers an impartial comparison of Starbucks Corporation and McDonald's Corp. for those interested in stock analysis. We delve into their distinct business models, assess their financial performance, and examine their respective positions within the broader market context. This analysis aims to provide a clear, accessible overview of both companies from an investment perspective. Educational content, not financial advice.

This page offers an impartial comparison of Starbucks Corporation and McDonald's Corp. for those interested in stock analysis. We delve into their distinct business models, assess their financial perf...

Comparison Snapshot

Key Financial Metrics

SBUX

Metric

MCD

$109.54B

Market Cap

$222.87B

-1.11%

Potential Profit

7.62%

Buy

Analyst Rating

Buy

Why It's Moving

Starbucks Stock Charges Ahead of Q1 Earnings and Investor Day, Eyeing Turnaround Momentum.

Shares jumped 1.87% to $97.62 in the latest session, marking a 13% monthly rise that beats the retail sector amid constructive Wall Street sentiment.
Q1 revenue eyed at $9.63-9.64 billion, up over 2% YoY, fueled by US delivery growth, loyalty program upticks, and international expansion via China partnership.
Earnings expected to dip to $0.58-0.59 per share due to high coffee costs and tariffs, but analysts lean 'Buy' with hopes for sustained transaction pickup.

Sentiment:

🐃Bullish

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.

Sentiment:

🐃Bullish

Starbucks Stock Charges Ahead of Q1 Earnings and Investor Day, Eyeing Turnaround Momentum.

Shares jumped 1.87% to $97.62 in the latest session, marking a 13% monthly rise that beats the retail sector amid constructive Wall Street sentiment.
Q1 revenue eyed at $9.63-9.64 billion, up over 2% YoY, fueled by US delivery growth, loyalty program upticks, and international expansion via China partnership.
Earnings expected to dip to $0.58-0.59 per share due to high coffee costs and tariffs, but analysts lean 'Buy' with hopes for sustained transaction pickup.

Sentiment:

🐃Bullish

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.

Sentiment:

🐃Bullish

Investment Analysis

Starbucks

SBUX

Pros

Starbucks achieved first global comparable store sales growth in seven quarters at 1% YoY.
Analysts project earnings growth of 28.5% for next fiscal year to $2.98 per share.
Consensus analyst rating is Buy from 24 analysts with 2026 price target of $99.92.

Considerations

Adjusted EPS of $0.52 missed consensus estimates by 5.5% in latest quarter.
Zacks Rank #5 Strong Sell reflects bearish analyst stance on earnings outlook.
Operating margin shrank by 7.1 percentage points over past year to 7.9%.

McDonald's

MCD

Pros

McDonald's maintains resilient franchise model generating stable cash flows amid economic pressures.
Ongoing digital and delivery expansions drive menu innovation and customer loyalty.
Strong balance sheet supports dividend growth and share repurchases consistently.

Considerations

Elevated labour costs and wage inflation pressure restaurant-level margins.
Heightened competition from quick-service rivals challenges market share gains.
Macroeconomic slowdown risks dampen consumer spending on discretionary dining.

Related Market Insights

Starbucks Closures: Coffee Chain Competition Risks

Starbucks' 100 store closures create a competitive vacuum. Discover how McDonald's, Tim Hortons, and other rivals can capture market share. Invest in the coffee market shake-up with Nemo.