McDonald's vs Starbucks, side by side
They both feed millions a day, but the business models differ sharply. Most McDonald's restaurants are run by franchisees - McDonald's collects royalties and, in many cases, rent, which makes its income unusually steady. Starbucks mostly operates its own stores, so it keeps more of each sale but also carries the costs and the wage bill.
On our factor screen it looks strongest on quality and income, and weakest on momentum.
On our factor screen it looks strongest on momentum and growth, and weakest on quality.
The numbers, side by side
| Measure |  McDonald's |  Starbucks |
|---|---|---|
| Price | $270.64 | $105.25 |
| Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'. | $192.29B | $119.98B |
| P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 22.1 | 61.2 |
| Div yield: Dividend yield: the yearly dividend as a percentage of the share price - roughly the income you'd earn just from dividends. | 2.8% | 2.4% |
| Revenue growth | 9.4% | -1.4% |
| 1Y: How much the share price has moved over the past year. | -9% | +16% |
More measures
| Forward P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 19.2 | 34.0 |
|---|---|---|
| Net margin | 31.6% | 5.2% |
| ROE | — | — |
| Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. | 0.42 | 0.97 |
The bolder figure is simply the larger of the two - higher is not automatically good (a higher P/E means more expectation in the price; a higher beta means bigger swings).
How they differ
McDonald's is roughly 1.6x the size of Starbucks by market value. On our factor screen McDonald's currently screens higher on quality and income, while Starbucks screens higher on momentum. Starbucks trades on the higher P/E (61.2 vs 22.1), so more expectation is already built into its price. Over the past year the share prices moved -9% (McDonald's) vs +16% (Starbucks).
Descriptive only - how the two compare on today's data, never a verdict on either.
McDonald's, in one line
McDonald's is the world's largest fast-food chain, serving millions of customers daily through its iconic golden arches.
Read the full McDonald's explainer →Starbucks, in one line
Starbucks is the world's largest coffeehouse chain, serving up millions of cups of coffee, tea, and snacks across thousands of locations globally.
Read the full Starbucks explainer →What to weigh
If sharp swings bother you, the betas differ (0.42 vs 0.97). These are facts to understand, not a verdict - read each full explainer before deciding anything.
Common questions
Why does the franchise model change the numbers?
A franchisor books high-margin royalty and rent income without running every kitchen, so margins look high and steady. An operator books the full sale but also the full cost - more upside in good times, more exposure in bad ones.
Which one is more sensitive to consumer belt-tightening?
Both feel it, differently. Value menus can hold traffic in a squeeze, while a premium coffee habit is easier to trim. The numbers to watch are same-store sales for each - reported every quarter.