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MCD vs YUM
Which Stock Would AI Choose? McDonald's (MCD) vs. Yum! Brands (YUM) Stock Comparison
Key Takeaways
- MCD has outperformed YUM year-to-date (YTD, meaning performance from the start of the current year), gaining 6.34% compared to YUM's 2.49%.
- Recent quarterly results show YUM with a 71% profit jump to $432 million, powered by Taco Bell, while MCD faces upcoming earnings with potential U.S. comparable sales challenges.
- Both stocks exhibit low volatility with betas (a measure of stock volatility relative to the market) of 0.44 for MCD and 0.60 for YUM, appealing to defensive investors.
- Analyst price targets indicate upside potential: around $344 for MCD (about 20% from current levels) and $174 for YUM (roughly 13%).
- MCD offers a higher dividend yield at 2.60% versus YUM's 1.89%, supporting income-focused strategies.
- Market caps differ significantly: MCD at $202 billion versus YUM's $43 billion, reflecting scale advantages.
Introduction
McDonald's (MCD) and Yum! Brands (YUM), two leaders in the quick-service restaurant (QSR) sector, offer investors exposure to global fast-food demand amid shifting consumer preferences and economic pressures. This stock comparison analyzes their recent market positioning, performance metrics, and growth catalysts, aiding traders seeking relative value in consumer staples or long-term holders prioritizing dividends and stability. With both trading near 52-week lows in recent market activity, understanding their contrasts helps navigate sector rotation and sentiment shifts.
MCD Overview and Recent Performance
McDonald's Corporation operates a vast franchised network centered on burgers, fries, and beverages, with over 40,000 locations worldwide. In recent weeks, MCD shares have hovered near the lower end of their 52-week range (283.47–341.75), trading around $285 amid broader market caution. Year-to-date gains stand at 6.34%, supported by steady trailing twelve months (TTM) revenue of $26.88 billion and earnings per share (EPS, profit per share) of $11.95. Sentiment reflects upcoming Q1 earnings expectations, with UBS noting potential misses in U.S. comparable sales, offset by McCafé branding updates and a planned phase-out of self-serve soda fountains by 2032. Trailing P/E (price-to-earnings ratio, stock price divided by EPS) at 23.82 signals moderate valuation, bolstered by a low beta of 0.44 and 2.60% dividend yield.
YUM Overview and Recent Performance
Yum! Brands oversees franchise-heavy brands like Taco Bell, KFC, and Pizza Hut, emphasizing international expansion and digital innovation. Shares of YUM recently traded around $154, within a 52-week range of 137.33–169.39, following a post-earnings pullback. YTD performance is 2.49%, with TTM revenue at $8.49 billion and EPS of $6.21. Recent Q1 results showed a 71% profit surge to $432 million, driven by Taco Bell's same-store sales and loyalty growth, though Pizza Hut lagged; Morgan Stanley highlighted improving visibility. Valuation via trailing P/E of 24.85 appears stretched relative to peers, with beta at 0.60 and dividend yield of 1.89%.
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Head-to-Head Comparison
Both MCD and YUM rely on franchise models for scalability, but MCD's singular brand offers tighter operational control versus YUM's multi-brand diversity spanning Mexican, chicken, and pizza. Growth drivers differ: MCD leverages menu staples and coffee expansions, while YUM banks on Taco Bell's digital sales and value promotions amid KFC softness. Recent momentum favors MCD's YTD edge, though YUM's earnings beat signals Taco Bell catalysts. Risk profiles align with low betas, but YUM's higher P/E and brand variability introduce modest volatility. Sector exposure is pure QSR, yet MCD's larger scale buffers economic dips. Market sentiment tilts positive for both via analyst upgrades, with MCD commanding premium multiples for stability.
Tickeron AI Verdict
Tickeron's AI tools, scanning trends and relative strength, would currently favor MCD with moderate conviction. Superior YTD returns, lower beta for stability, elevated dividend yield, and greater analyst-implied upside position it ahead in defensive consumer plays, despite YUM's recent earnings momentum.
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. Disclaimers and Limitations
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 MCD is a StrongBuy and YUM 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).
MCD’s FA Score shows that 2 FA rating(s) are green whileYUM’s FA Score has 2 green FA rating(s).
- MCD’s FA Score: 2 green, 3 red.
- YUM’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.
MCD’s TA Score shows that 4 TA indicator(s) are bullish while YUM’s TA Score has 4 bullish TA indicator(s).
- MCD’s TA Score: 4 bullish, 4 bearish.
- YUM’s TA Score: 4 bullish, 3 bearish.
Price Growth
MCD (@Restaurants) experienced а +1.78% price change this week, while YUM (@Restaurants) price change was +2.28% for the same time period.
The average weekly price growth across all stocks in the @Restaurants industry was +9.39%. For the same industry, the average monthly price growth was +9.02%, and the average quarterly price growth was -0.24%.
Reported Earning Dates
MCD is expected to report earnings on Jul 29, 2026.
YUM is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Restaurants (+9.39% 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.
| MCD | YUM | MCD / YUM | |
| Capitalization | 202B | 42.5B | 475% |
| EBITDA | 15B | 2.89B | 518% |
| Gain YTD | -5.656 | 2.975 | -190% |
| P/E Ratio | 23.48 | 24.89 | 94% |
| Revenue | 27.4B | 8.49B | 323% |
| Total Cash | 1.17B | 689M | 170% |
| Total Debt | 54.9B | 12B | 458% |
MCD | YUM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 26 | 63 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 18 Undervalued | 44 Fair valued | |
PROFIT vs RISK RATING 1..100 | 40 | 31 | |
SMR RATING 1..100 | 5 | 8 | |
PRICE GROWTH RATING 1..100 | 59 | 53 | |
P/E GROWTH RATING 1..100 | 65 | 67 | |
SEASONALITY SCORE 1..100 | 18 | 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 (18) in the Restaurants industry is in the same range as YUM (44). This means that MCD’s stock grew similarly to YUM’s over the last 12 months.
YUM's Profit vs Risk Rating (31) in the Restaurants industry is in the same range as MCD (40). This means that YUM’s stock grew similarly to MCD’s over the last 12 months.
MCD's SMR Rating (5) in the Restaurants industry is in the same range as YUM (8). This means that MCD’s stock grew similarly to YUM’s over the last 12 months.
YUM's Price Growth Rating (53) in the Restaurants industry is in the same range as MCD (59). This means that YUM’s stock grew similarly to MCD’s over the last 12 months.
MCD's P/E Growth Rating (65) in the Restaurants industry is in the same range as YUM (67). This means that MCD’s stock grew similarly to YUM’s over the last 12 months.
| MCD | YUM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 50% | N/A |
| Stochastic ODDS (%) | 2 days ago 38% | 2 days ago 51% |
| Momentum ODDS (%) | 2 days ago 39% | 2 days ago 51% |
| MACD ODDS (%) | 2 days ago 43% | 2 days ago 53% |
| TrendWeek ODDS (%) | 2 days ago 44% | 2 days ago 44% |
| TrendMonth ODDS (%) | 2 days ago 42% | 2 days ago 35% |
| Advances ODDS (%) | 2 days ago 43% | 2 days ago 44% |
| Declines ODDS (%) | 10 days ago 41% | 12 days ago 40% |
| BollingerBands ODDS (%) | N/A | 4 days ago 54% |
| Aroon ODDS (%) | 2 days ago 36% | 2 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% | +0.01% | ||
| YUM - MCD | 53% Loosely correlated | +0.68% | ||
| DPZ - MCD | 40% Loosely correlated | +3.72% | ||
| ARCO - MCD | 27% Poorly correlated | +0.80% | ||
| DRI - MCD | 26% Poorly correlated | +0.30% | ||
| NATH - MCD | 25% Poorly correlated | +0.35% | ||
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YUM and
Correlation & Price change
A.I.dvisor indicates that over the last year, YUM has been loosely correlated with MCD. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if YUM jumps, then MCD could also see price increases.
| Ticker / NAME | Correlation To YUM | 1D Price Change % | ||
|---|---|---|---|---|
| YUM | 100% | +0.68% | ||
| MCD - YUM | 53% Loosely correlated | +0.01% | ||
| FRSH - YUM | 47% Loosely correlated | +2.44% | ||
| DPZ - YUM | 46% Loosely correlated | +3.72% | ||
| YUMC - YUM | 36% Loosely correlated | +2.41% | ||
| DRI - YUM | 35% Loosely correlated | +0.30% | ||
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