McDonald’s vs. Starbucks Stock: Which Is a Better Buy?

New York City, USA - September 4, 2011: Large group of people and yellow taxis passing by at the entrance to McDonalds fast-food restaurant in Midtown Manhattan, New York.
ozgurdonmaz / Getty Images

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When it comes to investing in top restaurant stocks, fast food titan McDonald’s (MCD) and coffee giant Starbucks (SBUX) are two compelling choices. But which one is the better buy in 2025?

 

One of the best ways to answer this is to compare their recent financials, growth prospects, valuation metrics and key risks to determine the superior investment.

Comparing the Numbers: MCD vs. SBUX

McDonald’s is everywhere, even in small towns and rural areas. This gives them an advantage by being so convenient and easy to reach. Starbucks is growing more by adding drive-thru lanes, delivery options, and mobile ordering to make it easier for customers to get their products. Both McDonald’s and Starbucks have been able to raise their prices a bit to help cover their higher costs lately.

McDonald’s Stock 

  • Stock price: $313.26
  • Market cap: $223.20 billion
  • 52-week high: $326.32
  • 52-week low: $243.53
  • Dividend yield: 2.3%

So far in 2025, MCD is trading in an underwhelming fashion thanks to sales trends among other issues. However, many investors and analysts expect McDonald’s to grow in comparable sales and boost its stock price in a rally this year.

Starbuck’s Stock

  • Stock price: $98.04
  • Market cap: $111.19 billion
  • 52-week high: $117.46
  • 52-week low: $71.55
  • Dividend yield: 2.51%

In Sept. 2024, Starbucks got a new CEO in Brian Niccol, who is spearheading improvements in the company’s branding, processes and perks. This could eventually help boost the dip in Starbucks’ comparable sales at the beginning of 2025. In general, Starbucks pays a great growing dividend, so it shouldn’t be overlooked by investors as the company’s dividend and potential for growth remain attractive.

Final Take To GO: The Better Investment

It’s clear that both Starbucks and McDonald’s are industry titans, with financial results that reward shareholders and fuel their growth. While operating in the food and beverage landscape, these two powerhouses are forces to be reckoned with.

McDonald’s, with its iconic golden arches, has mastered the art of operational efficiency and menu innovation. Its commitment to streamlining processes and introducing new offerings has allowed the brand to maintain a loyal following. Simultaneously, Starbucks has carved out a niche in the premium coffee realm, offering an experience that consumers love.

However, when it comes to investing, McDonald’s is often seen by investors as a more stable, dividend-focused investment, while Starbucks could attract those seeking growth and a premium brand, but with more potential risks and challenges. Before you make any investment decisions, however, it is always wise to consult with your own expert.

Editor’s note: Company and stock information is accurate as of April 2, 2025.

Laura Beck contributed to the reporting for this aricle.

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