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DPZ or MCD or YUM
Which Stock Would AI Choose? Domino's Pizza (DPZ) vs. McDonald's (MCD) vs. Yum! Brands (YUM) Stock Comparison
Key Takeaways
- DPZ experienced a sharp decline following weaker-than-expected Q1 results, underperforming year-to-date by over 10% amid heightened competition and softer demand.
- MCD has shown relative stability but slipped around 4% year-to-date, with mixed sales outlooks and value menu initiatives influencing recent sentiment.
- YUM led peers with a Q1 earnings beat and 6-8% year-to-date gains, driven by strong system sales growth and unit expansion.
- Valuation metrics highlight DPZ as the most attractively priced on a P/E (price-to-earnings ratio) basis at around 20x, compared to MCD (~25x) and YUM (~28x).
- All three face consumer spending pressures, but YUM's multi-brand diversification provides a growth edge over pizza-focused DPZ.
Introduction
Dominos Pizza (DPZ), McDonald's (MCD), and Yum! Brands (YUM) represent leading players in the quick-service restaurant sector, spanning pizza delivery, burgers, and multi-brand fast food. This comparison analyzes their recent market performance, operational highlights, and relative positioning amid shifting consumer trends and economic pressures. Traders seeking short-term momentum and investors focused on consumer staples resilience will find value in understanding their contrasts in growth drivers, sentiment, and valuations in the current environment.
DPZ Overview and Recent Performance
Domino's Pizza (DPZ) operates as a global pizza chain emphasizing delivery and carryout, with a franchise-heavy model driving scalability. In recent market activity, the stock faced significant pressure after Q1 results showed revenue of $1.15 billion, missing estimates, and U.S. same-store sales growth of just 0.9% due to intensified competition and macroeconomic headwinds. Shares dropped over 8% in response, extending year-to-date losses beyond 10%, as a lowered full-year outlook tempered sentiment despite solid free cash flow generation. Delivery promotions have supported volumes, but rising costs and rival pricing wars have weighed on margins.
MCD Overview and Recent Performance
McDonald's (MCD) dominates the fast-food landscape through its iconic brand, extensive franchising (over 90% of locations), and global footprint exceeding 40,000 outlets. Recent weeks have seen modest underperformance, with shares down around 4% year-to-date amid value menu strategies and cautious sales projections ahead of Q1 earnings. Aggressive U.S. restaurant expansion in 2025 marked a growth resurgence, boosting comparable sales, though traffic softness from economic caution has influenced sentiment. The stock's stability reflects resilient dividend history and operational efficiency, trading near $287 recently.
YUM Overview and Recent Performance
Yum! Brands (YUM) oversees KFC, Taco Bell, and Pizza Hut, leveraging a diversified portfolio across chicken, Mexican, and pizza categories with heavy international exposure. Recent performance stood out positively, as Q1 results surpassed expectations with earnings up over 8% and revenue growth, fueled by 6% worldwide system sales increase and 5% unit growth. Taco Bell's strength offset Pizza Hut challenges, driving year-to-date gains of 6-8% and bolstering market sentiment amid unit openings and profit growth.
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Head-to-Head Comparison
DPZ focuses on pizza delivery innovation but trails in diversification versus YUM's multi-brand stability and MCD's franchise dominance. Growth drivers differ: YUM benefits from Taco Bell momentum and 5% unit expansion, while DPZ contends with sales softness and MCD pushes value deals. Recent momentum favors YUM, but DPZ offers lower valuation sensitivity at ~20x P/E. Risk factors include consumer spending for all, with DPZ most exposed to pizza competition. Sector exposure is uniform in quick-service, yet MCD's scale provides defensiveness, trading off against YUM's higher growth potential.
Tickeron AI Verdict
Tickeron's AI models currently favor YUM due to consistent earnings beats, superior year-to-date momentum, and robust system sales growth positioning it ahead of peers amid recent restaurant sector volatility. While DPZ appears undervalued and MCD offers stability, YUM's catalysts suggest higher probability of near-term outperformance based on trend data.
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
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 0 FA rating(s) are green whileMCD’s FA Score has 2 green FA rating(s), and YUM’s FA Score reflects 2 green FA rating(s).
- DPZ’s FA Score: 0 green, 5 red.
- 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.
DPZ’s TA Score shows that 4 TA indicator(s) are bullish while MCD’s TA Score has 4 bullish TA indicator(s), and YUM’s TA Score reflects 3 bullish TA indicator(s).
- DPZ’s TA Score: 4 bullish, 4 bearish.
- MCD’s TA Score: 4 bullish, 5 bearish.
- YUM’s TA Score: 3 bullish, 6 bearish.
Price Growth
DPZ (@Restaurants) experienced а -6.50% price change this week, while MCD (@Restaurants) price change was -3.62% , and YUM (@Restaurants) price fluctuated -0.67% for the same time period.
The average weekly price growth across all stocks in the @Restaurants industry was -1.95%. For the same industry, the average monthly price growth was +0.15%, and the average quarterly price growth was +5.76%.
Reported Earning Dates
DPZ is expected to report earnings on Jul 16, 2026.
MCD is expected to report earnings on Jul 29, 2026.
YUM is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Restaurants (-1.95% 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 | YUM | |
| Capitalization | 10.3B | 195B | 42.1B |
| EBITDA | 1.04B | 15B | 2.89B |
| Gain YTD | -25.213 | -9.572 | 1.510 |
| P/E Ratio | 17.86 | 22.66 | 24.65 |
| Revenue | 4.98B | 27.4B | 8.49B |
| Total Cash | 233M | 1.17B | 689M |
| Total Debt | 5.14B | 54.9B | 12B |
DPZ | MCD | YUM | ||
|---|---|---|---|---|
OUTLOOK RATING 1..100 | 55 | 53 | 62 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 44 Fair valued | 2 Undervalued | 24 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 47 | 34 | |
SMR RATING 1..100 | 100 | 8 | 10 | |
PRICE GROWTH RATING 1..100 | 65 | 63 | 59 | |
P/E GROWTH RATING 1..100 | 85 | 70 | 68 | |
SEASONALITY SCORE 1..100 | 50 | 75 | 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 (2) in the Restaurants industry is in the same range as YUM (24) and is somewhat better than the same rating for DPZ (44). This means that MCD's stock grew similarly to YUM’s and somewhat faster than DPZ’s over the last 12 months.
YUM's Profit vs Risk Rating (34) in the Restaurants industry is in the same range as MCD (47) and is significantly better than the same rating for DPZ (100). This means that YUM's stock grew similarly to MCD’s and significantly faster than DPZ’s over the last 12 months.
MCD's SMR Rating (8) in the Restaurants industry is in the same range as YUM (10) and is significantly better than the same rating for DPZ (100). This means that MCD's stock grew similarly to YUM’s and significantly faster than DPZ’s over the last 12 months.
YUM's Price Growth Rating (59) in the Restaurants industry is in the same range as MCD (63) and is in the same range as DPZ (65). This means that YUM's stock grew similarly to MCD’s and similarly to DPZ’s over the last 12 months.
YUM's P/E Growth Rating (68) in the Restaurants industry is in the same range as MCD (70) and is in the same range as DPZ (85). This means that YUM's stock grew similarly to MCD’s and similarly to DPZ’s over the last 12 months.
| DPZ | MCD | YUM | |
|---|---|---|---|
| RSI ODDS (%) | 1 day ago 70% | 1 day ago 40% | N/A |
| Stochastic ODDS (%) | 1 day ago 56% | 1 day ago 58% | 1 day ago 60% |
| Momentum ODDS (%) | 1 day ago 65% | 1 day ago 40% | 1 day ago 43% |
| MACD ODDS (%) | 1 day ago 59% | 1 day ago 46% | 1 day ago 52% |
| TrendWeek ODDS (%) | 1 day ago 63% | 1 day ago 40% | 1 day ago 41% |
| TrendMonth ODDS (%) | 1 day ago 66% | 1 day ago 40% | 1 day ago 38% |
| Advances ODDS (%) | 27 days ago 67% | 27 days ago 42% | 7 days ago 44% |
| Declines ODDS (%) | 1 day ago 58% | 3 days ago 40% | 3 days ago 40% |
| BollingerBands ODDS (%) | 1 day ago 66% | 1 day ago 40% | 1 day ago 70% |
| Aroon ODDS (%) | 1 day ago 59% | 1 day ago 44% | 7 days ago 37% |
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