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YUM
Yum! Brands, Inc. · Consumer Discretionary
$151.99
-0.13% this month
VERSUS
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COMPARE
MCD
McDonald's Corporation · Consumer Discretionary
$278.61
-0.78% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
YUM
2
MCD
3
Comparison scoreboard
MCD LEADS 3/5AI Score
YUM ✓50.6
MCD 49.1
1Y Return
YUM ✓+8.57%
MCD -4.69%
Fwd P/E
YUM 20.59
MCD ✓20.03
Target Up.
YUM +12.91%
MCD ✓+16.32%
Op. Margin
YUM 31.08%
MCD ✓44.25%
Metrics last refreshed: 6/20/2026
Quick take
YUM vs MCD Stock Comparison: AI Score, Valuation, Performance and Upside
Yum! Brands and McDonald's are both global QSR franchise giants with asset-light business models, but different brand portfolio structures. McDonald's has one dominant global brand with exceptional scale; Yum has three brands (KFC, Taco Bell, Pizza Hut) diversified across categories. Both face value perception challenges from years of price increases. McDonald's real estate model and single-brand clarity appeal to some; Yum's Taco Bell growth and KFC international footprint appeal to others.
YUM vs MCD is the multi-brand QSR franchisor with KFC's exceptional international presence, Taco Bell's US Gen Z momentum, and Pizza Hut recovery challenge (Yum! Brands) versus the single global QSR brand icon with 40,000+ locations, real estate embedded in franchise model, and digital loyalty transformation driving personalization at massive scale (McDonald's) — brand portfolio diversification vs singular global brand scale.
Live analysis · updated 6/20/2026
MCD holds the edge across 3 of 5 key metrics in this comparison. YUM has delivered stronger 1-year price return (+8.57% vs -4.69%), though MCD trades at the lower forward P/E (20.03x vs 20.59x). On fundamentals, YUM is growing revenue faster (15.20%), while MCD maintains the higher operating margin (44.25%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for MCD (+16.32%) than for YUM (+12.91%).
Normalized 1Y performance
YUM
MCD
Recent returns
YUM
MCD
Analyst price targets & sentiment
YUM · 24 analysts
STRONG BUYHOLDSTRONG SELL
Hold (2.6/5.0)
Price target range
analyst low$140.00
analyst high$185.00
analyst mean$174.23
current price$151.99
+12.9% upside to analyst mean
MCD · 28 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.1/5.0)
Price target range
analyst low$300.00
analyst high$364.00
analyst mean$331.29
current price$278.61
+16.3% upside to analyst mean
Who should consider this stock?
YUM may suit investors who:
- →prefer the QSR franchisor with Taco Bell's value innovation and Gen Z brand strength as a US growth driver plus KFC's unmatched global chicken restaurant footprint
- →value Yum's brand diversification across chicken (KFC), Mexican-inspired (Taco Bell), and pizza (Pizza Hut) — three differentiated categories vs McDonald's burger concentration
- →want QSR franchise exposure with strong international development especially in emerging markets where KFC's global recognition drives new unit economics
- →are comfortable with Pizza Hut's persistent comp weakness, Taco Bell needing to balance value vs price increases, and managing three brands with different performance trajectories simultaneously
MCD may suit investors who:
- →prefer the world's most recognized QSR brand with 40,000+ locations, real estate income embedded in franchise model, and digital loyalty investment building personalization at scale
- →value McDonald's dual income from royalties (QSR performance) and rent (real estate) — creating a more stable income base than royalty-only franchisors like Yum
- →want the single most global fast food brand with no multi-brand complexity — McDonald's focus on one brand across 100+ countries creates operational clarity
- →are comfortable with value perception recovery challenge from years of price increases, E. coli food safety overhang, and chicken category competition from Chick-fil-A and Raising Cane's
Performance & AI score
| Metric | YUM | MCD |
|---|---|---|
| AI score | 50.6 | 49.1 |
| AI rank | #431 | #525 |
| Latest close | $151.99 | $278.61 |
| 1M return | -0.13% | -0.78% |
| 6M return | -0.75% | -12.58% |
| 1Y return | +8.57% | -4.69% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | YUM | MCD |
|---|---|---|
| 1Y ago | $10.99K (+9.9%) started 2025-06-18 | $9.62K (-3.8%) started 2025-06-18 |
| 5Y ago | $15K (+50.0%) started 2021-06-21 | $14.24K (+42.4%) started 2021-06-21 |
| 10Y ago | $35.09K (+250.9%) started 2016-06-20 | $35.26K (+252.6%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | YUM | MCD |
|---|---|---|
| Market cap | $42.53B | $202.36B |
| Trailing P/E | 24.89 | 23.48 |
| Forward P/E | 20.59 | 20.03 |
| Price/Sales | 5.20 | 8.55 |
| EV/Revenue | 6.48 | 9.33 |
| Analyst target | $174.23 | $331.29 |
| Target upside | +12.91% | +16.32% |
Growth, profitability & risk
| Metric | YUM | MCD |
|---|---|---|
| Revenue growth | 15.20% | 9.40% |
| Earnings growth | 72.20% | 6.90% |
| EPS growth | +72.20% | +6.90% |
| FCF margin | +14.87% | +21.69% |
| Operating margin | 31.08% | 44.25% |
| Profit margin | 20.48% | 31.62% |
| ROIC proxy | N/A | N/A |
| Return on equity | N/A | N/A |
| Dividend yield | 1.94% | 2.61% |
| Beta | 0.57 | 0.41 |
| Debt/equity | N/A | N/A |
| Current ratio | 0.65 | 1.14 |
| Quick ratio | 0.52 | 0.87 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
YUM max drawdown12.83%
MCD max drawdown20.04%
YUM max wkly drop6.02%
MCD max wkly drop5.66%
5Y risk snapshot
YUM max drawdown23.10%
MCD max drawdown20.04%
YUM max wkly drop11.04%
MCD max wkly drop8.35%
10Y risk snapshot
YUM max drawdown52.17%
MCD max drawdown36.90%
YUM max wkly drop25.98%
MCD max wkly drop27.07%
Performance metrics by period
| Period | Metric | YUM | MCD |
|---|---|---|---|
| 1Y | Growth | +9.85% | -3.80% |
| CAGR | +9.87% | -3.81% | |
| Sharpe ratio | 0.33 | -0.42 | |
| Max drawdown | 12.83% | 20.04% | |
| Max daily drop | 5.10% | 3.24% | |
| Max wkly drop | 6.02% | 5.66% | |
| 5Y | Growth | +39.58% | +30.27% |
| CAGR | +6.91% | +5.44% | |
| Sharpe ratio | 0.21 | 0.13 | |
| Max drawdown | 23.10% | 20.04% | |
| Max daily drop | 8.44% | 5.71% | |
| Max wkly drop | 11.04% | 8.35% | |
| 10Y | Growth | +195.17% | +178.86% |
| CAGR | +11.44% | +10.81% | |
| Sharpe ratio | 0.39 | 0.39 | |
| Max drawdown | 52.17% | 36.90% | |
| Max daily drop | 11.00% | 15.88% | |
| Max wkly drop | 25.98% | 27.07% |
Business comparison
| Category | YUM | MCD |
|---|---|---|
| Company | Yum! Brands, Inc. | McDonald's Corporation |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Restaurants | Restaurants |
| Core business | Yum! Brands operates three global QSR chains: KFC (chicken, 27,000+ locations in 150+ countries), Taco Bell (Mexican-inspired fast food, US dominant and growing internationally), and Pizza Hut (pizza, 18,000+ locations). Yum's franchise model means 98%+ of locations are owned by independent franchisees — Yum earns royalties and fees on system-wide sales. Yum has sold or spun off its China business (Yum China, YUMC) and Habit Burger. KFC's international presence is exceptional — KFC is the #1 fast food brand in China by locations and brand recognition. | McDonald's is the world's largest QSR chain by system-wide sales with 40,000+ locations in 100+ countries, serving 69M+ customers daily. McDonald's franchise model (95%+ franchised) generates royalty and rent income from franchisees. McDonald's loyalty app (100M+ downloads), $5 Meal Deal value platform, and digital ordering transformation are key growth strategies. McDonald's real estate model (owning land under many franchised locations) provides additional income. The recent E. coli outbreak (2024) affecting Quarter Pounder products created a temporary traffic headwind. |
| Investor focus | Investors track system-wide same-store sales for each brand, net new unit growth (especially KFC international), digital sales penetration, and Taco Bell US performance as the highest-growth brand. | Investors track global comparable sales, US comp sales vs value and traffic trends, digital loyalty member count and digital sales percentage, and net new restaurant additions. |
YUM strengths
- →Taco Bell is among the best QSR brands for value innovation — frequent new product launches, value menu strength, and Gen Z cultural relevance make Taco Bell the fastest-growing Yum brand
- →KFC's international footprint is extraordinary — 27,000+ locations across 150 countries make KFC the most global fast food brand after McDonald's
- →Asset-light franchise model: 98%+ franchised means Yum earns fee income without restaurant capex risk — returning nearly all free cash flow to shareholders through dividends and buybacks
MCD strengths
- →Most recognized brand globally — McDonald's Golden Arches is among the most recognized symbols in the world, creating cultural omnipresence that drives daily traffic across income levels
- →Real estate business embedded in franchise model: McDonald's owns land under many franchised locations, receiving both royalties AND rent — creating a real estate income stream alongside QSR fees
- →Digital loyalty investment: McDonald's app with 100M+ downloads and personalized offers builds digital relationship with customers across all markets
Risks to watch — YUM
- →Pizza Hut is a challenged brand — pizza delivery economics have been disrupted by third-party delivery apps and specialty pizza chains, creating sustained comp weakness
- →China KFC exposure: while Yum China is separate, KFC's global brand perception is linked — China economic slowdowns affect KFC China (YUMC) but not directly Yum's financials
- →Taco Bell's premium items (Cantina range, Drive-Thru) must balance value perception vs price increases after years of inflation-driven menu price hikes
Risks to watch — MCD
- →Value perception challenge: years of menu price inflation have eroded McDonald's low-price positioning — traffic declines among lower-income consumers seeking maximum value
- →E. coli outbreak (2024 Quarter Pounder) caused near-term traffic disruption — food safety incidents can create lasting consumer hesitation beyond the immediate incident
- →Competition from Chick-fil-A, Raising Cane's, and Shake Shack in chicken category threatens McDonald's US burger-dominant positioning as chicken traffic grows faster than beef
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