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DPZ vs MCD
Which Stock Would AI Choose? Domino's Pizza (DPZ) vs. McDonald's (MCD) Stock Comparison
Key Takeaways
- Domino's Pizza (DPZ) has experienced sharper year-to-date declines compared to McDonald's (MCD), with DPZ down approximately 27% versus MCD's roughly 7% drop amid broader quick-service restaurant sector pressures.
- Both companies operate in the quick-service restaurant sector, but MCD benefits from greater geographic diversification and a larger franchise base, contributing to relatively more stable recent performance.
- Analyst sentiment has shown caution for both, with recent price target reductions, though MCD maintains a higher proportion of positive ratings in available coverage.
- DPZ faces near-term focus on upcoming earnings, while MCD has highlighted operational initiatives such as leadership appointments and menu enhancements in recent market activity.
- Relative momentum favors MCD due to lower volatility and better year-to-date resilience, though both stocks trade below recent highs.
- Market positioning reflects trade-offs between DPZ's concentrated domestic focus and MCD's scale advantages in a challenging consumer environment.
Introduction
This comparison examines Domino's Pizza (DPZ) and McDonald's (MCD), two prominent quick-service restaurant operators, to provide traders and investors with insights into their relative performance and positioning. The analysis focuses on observable factors such as recent stock behavior, business models, and market sentiment, offering a neutral framework for those evaluating exposure to the consumer discretionary sector. Investors seeking to understand contrasts in stability, growth drivers, and risk profiles within the restaurant industry may find this overview relevant for portfolio considerations.
DPZ Overview and Recent Performance
Domino's Pizza (DPZ) is the largest pizza company globally, primarily operating through a franchise model with a strong emphasis on delivery and carryout in the United States and select international markets. In recent market activity, the stock has declined notably, trading around the $302 level after falling more than 25% year-to-date and approximately 34% over the trailing twelve months from 52-week highs near $496. Sentiment has been influenced by analyst actions, including lowered price targets from firms such as Citi and UBS, alongside broader sector challenges affecting consumer spending. The company maintains active share repurchase programs and has declared quarterly dividends, with attention turning to its scheduled earnings release later in July.
MCD Overview and Recent Performance
McDonald's (MCD) is the world's largest quick-service restaurant chain, operating a vast global franchise network with significant presence across multiple continents and menu categories. In recent market activity, the stock has shown relative resilience, trading near $278-$282 after declining about 7% year-to-date from a 52-week high of approximately $342. Performance has been supported by ongoing operational updates, including leadership changes and promotional strategies, while some analyst coverage notes bullish options activity and maintains buy ratings despite modest target adjustments. The larger scale and international diversification appear to have contributed to comparatively steadier positioning amid fluctuating consumer trends.
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Head-to-Head Comparison
Domino's Pizza (DPZ) and McDonald's (MCD) both rely on franchise-driven models in the quick-service restaurant sector, yet differ in scale and exposure. MCD's global footprint and diversified menu provide broader revenue stability compared to DPZ's more concentrated focus on pizza delivery within key markets. Recent momentum has favored MCD, with milder year-to-date declines and fewer sharp drawdowns relative to DPZ's steeper pullback. Risk factors for DPZ include sensitivity to domestic consumer trends and upcoming earnings catalysts, while MCD contends with global macroeconomic influences but benefits from greater operational buffers. Market sentiment reflects these contrasts, with MCD exhibiting lower beta characteristics and sustained analyst interest amid sector headwinds.
Tickeron AI Verdict
Based on observable factors including trend consistency, relative stability, and positioning within the quick-service restaurant sector, Tickeron’s AI would currently assign a higher probabilistic preference to McDonald's (MCD). Its milder performance drawdown, larger market capitalization, and diversified franchise structure suggest greater resilience in the prevailing environment compared to Domino's Pizza (DPZ), though both face comparable sector pressures and analyst scrutiny.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DPZ is a StrongBuy and MCD is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DPZ’s FA Score shows that 1 FA rating(s) are green whileMCD’s FA Score has 2 green FA rating(s).
- DPZ’s FA Score: 1 green, 4 red.
- MCD’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DPZ’s TA Score shows that 6 TA indicator(s) are bullish while MCD’s TA Score has 5 bullish TA indicator(s).
- DPZ’s TA Score: 6 bullish, 3 bearish.
- MCD’s TA Score: 5 bullish, 3 bearish.
Price Growth
DPZ (@Restaurants) experienced а -3.91% price change this week, while MCD (@Restaurants) price change was -2.15% for the same time period.
The average weekly price growth across all stocks in the @Restaurants industry was -3.16%. For the same industry, the average monthly price growth was +3.79%, and the average quarterly price growth was -3.73%.
Reported Earning Dates
DPZ is expected to report earnings on Jul 20, 2026.
MCD is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Restaurants (-3.16% weekly)The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald`s Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.
| DPZ | MCD | DPZ / MCD | |
| Capitalization | 9.96B | 195B | 5% |
| EBITDA | 1.04B | 15B | 7% |
| Gain YTD | -27.347 | -9.038 | 303% |
| P/E Ratio | 17.24 | 22.64 | 76% |
| Revenue | 4.98B | 27.4B | 18% |
| Total Cash | N/A | 1.17B | - |
| Total Debt | 5.14B | 54.9B | 9% |
DPZ | MCD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 6 | 69 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 21 Undervalued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 53 | |
SMR RATING 1..100 | 100 | 5 | |
PRICE GROWTH RATING 1..100 | 64 | 60 | |
P/E GROWTH RATING 1..100 | 85 | 65 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
MCD's Valuation (14) in the Restaurants industry is in the same range as DPZ (21). This means that MCD’s stock grew similarly to DPZ’s over the last 12 months.
MCD's Profit vs Risk Rating (53) in the Restaurants industry is somewhat better than the same rating for DPZ (100). This means that MCD’s stock grew somewhat faster than DPZ’s over the last 12 months.
MCD's SMR Rating (5) in the Restaurants industry is significantly better than the same rating for DPZ (100). This means that MCD’s stock grew significantly faster than DPZ’s over the last 12 months.
MCD's Price Growth Rating (60) in the Restaurants industry is in the same range as DPZ (64). This means that MCD’s stock grew similarly to DPZ’s over the last 12 months.
MCD's P/E Growth Rating (65) in the Restaurants industry is in the same range as DPZ (85). This means that MCD’s stock grew similarly to DPZ’s over the last 12 months.
| DPZ | MCD | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 83% | N/A |
| Stochastic ODDS (%) | 3 days ago 69% | 3 days ago 42% |
| Momentum ODDS (%) | 3 days ago 58% | 3 days ago 36% |
| MACD ODDS (%) | 3 days ago 66% | 3 days ago 41% |
| TrendWeek ODDS (%) | 3 days ago 65% | 3 days ago 42% |
| TrendMonth ODDS (%) | 3 days ago 68% | 3 days ago 43% |
| Advances ODDS (%) | 11 days ago 66% | 19 days ago 43% |
| Declines ODDS (%) | 3 days ago 59% | 3 days ago 42% |
| BollingerBands ODDS (%) | 3 days ago 69% | 3 days ago 41% |
| Aroon ODDS (%) | 3 days ago 59% | 3 days ago 32% |
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MCD and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCD has been loosely correlated with YUM. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if MCD jumps, then YUM could also see price increases.
| Ticker / NAME | Correlation To MCD | 1D Price Change % | ||
|---|---|---|---|---|
| MCD | 100% | -0.68% | ||
| YUM - MCD | 53% Loosely correlated | +0.71% | ||
| DPZ - MCD | 40% Loosely correlated | -0.47% | ||
| DRI - MCD | 28% Poorly correlated | +1.97% | ||
| NATH - MCD | 26% Poorly correlated | -0.28% | ||
| JACK - MCD | 25% Poorly correlated | -1.85% | ||
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