McDonald's vs Yum! Brands (MCD vs YUM)
McDonald's (MCD) vs Yum! Brands (YUM) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.
McDonald's (MCD) and Yum! Brands (YUM) compete in restaurants. Here are McDonald's and Yum! Brands side by side with their real figures as of November 4, 2026: what sets them apart, which fits each kind of investor and the most common questions, without telling you whether to buy McDonald's or Yum! Brands.
McDonald's vs Yum! Brands: the figures
| Figure | McDonald's | Yum! Brands |
|---|---|---|
| Share price | $280.22 (November 4, 2026) | $166.31 (November 4, 2026) |
| Market cap | $198.3 billion | $44.7 billion |
| P/E (TTM) | 22.8x | 13.4x |
| Forward P/E | 20.4x | 24.6x |
| Revenue growth (quarter) | +3.7% | +12.2% |
| Net margin (TTM) | 31.7% | 25.4% |
| Net debt / EBITDA | 3.6x | 4.1x |
| Dividend yield | 2.93% | 1.90% |
| Beta | 0.43 | 0.53 |
McDonald's and Yum! Brands figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that McDonald's or Yum! Brands figure is not available, and we never estimate it.
3 key differences between McDonald's and Yum! Brands
- Valuation: McDonald's trades at 22.8x its annual earnings and Yum! Brands at 13.4x; the market pays more for each dollar of McDonald's profit, usually because it expects more growth.
- Growth: Yum! Brands grew sales +12.2% year on year in its latest quarter, against +3.7% for McDonald's.
- Profitability: for every 100 of sales, McDonald's keeps 31.7 as net profit and Yum! Brands keeps 25.4.
McDonald's or Yum! Brands: which fits your profile
- If you want growth: Yum! Brands is growing faster today, so it fits better with investors who put business growth first, usually accepting a higher P/E and a bumpier ride.
- If you want income (dividends): McDonald's pays the higher dividend relative to its price.
- If you prefer caution: McDonald's has less debt relative to its profit, which usually gives more room in a bad year.
- If price is what matters most to you: Yum! Brands trades on the lower P/E; check first whether that is an opportunity or a sign of a business that grows less.
Neither McDonald's nor Yum! Brands wins on everything, and owning both is also an option: spreading money across several companies or an index fund reduces what rides on each one.
How McDonald's and Yum! Brands make money
McDonald's (MCD)
McDonald's has most of its restaurants run by franchisees, who pay it rent and royalties on sales, and that is its main source of profit. The rest comes from sales at company-operated restaurants. It reports three segments: U.S., International Operated Markets, and International Developmental Licensed Markets. Full McDonald's analysis.
Yum! Brands (YUM)
Yum! Brands owns KFC, Taco Bell and Pizza Hut and reports a separate division for each. Almost all of its restaurants are run by franchisees, who pay royalties on sales and contribute to advertising funds. KFC carries the most weight internationally, while Taco Bell is its powerhouse in the United States. Full Yum! Brands analysis.
Frequently asked questions: McDonald's vs Yum! Brands
Is McDonald's or Yum! Brands the better stock?
Choosing between McDonald's and Yum! Brands depends on what you are looking for. Yum! Brands is growing faster right now, and Yum! Brands trades on the lower P/E. Fintols does not tell you whether to buy McDonald's or Yum! Brands: it shows you the differences so you can decide.
Which pays a higher dividend, McDonald's or Yum! Brands?
As of November 4, 2026, McDonald's yields 2.93% and Yum! Brands yields 1.90%. Also check how much of their profit McDonald's and Yum! Brands pay out: if it is more than they earn, it cannot last.
Which is more expensive, McDonald's or Yum! Brands?
On P/E, McDonald's (22.8x) is more expensive than Yum! Brands (13.4x) as of November 4, 2026. A higher P/E can be justified if earnings grow faster, so compare it with each company's growth in the table.
Can I own both McDonald's and Yum! Brands?
Yes. Many people spread their money across several companies, such as McDonald's and Yum! Brands, or use index funds so they do not depend on just one. If you are starting out, decide how much you want to invest and for how long before buying McDonald's or Yum! Brands.
More comparisons with McDonald's or Yum! Brands
More companies like McDonald's and Yum! Brands: restaurants stocks. Educational content about McDonald's and Yum! Brands, not investment advice.