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STOCK COMPARISON

McDonald’s vs Yum! Brands: Fair Value & Quality

Both stocks run through our valuation models. Here is how McDonald’s (MCD) and Yum! Brands (YUM) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees McDonald’s as the less overvalued of the two: McDonald’s trades at $260 versus a fair value of $149 (-43%), while Yum! Brands trades at $153 versus $58.17 (-62%).
McDonald’s
MCD · USD · Consumer Discretionary
-43%
upside to fair value
overvalued
Price$260
Fair Value$149
Quality69/100
Yum! Brands
YUM · USD · Consumer Discretionary
-62%
upside to fair value
overvalued
Price$153
Fair Value$58.17
Quality70/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

McDonald’sYum! Brands
Valuation
21.5×P/E (TTM)26.4×
7.11×P/S (TTM)5.31×
15.8×EV/EBITDA18.8×
2.56×PEG2.00×
−42.6%Fair value upside−61.9%
2.8%Dividend yield1.4%
$7.26Dividend per share$2.17
Profitability
44%Operating margin31%
1.21×EBIT margin trend (5Y)1.16×
14%Return on assets23%
Growth
9%Revenue growth (YoY)15%
5.1%Avg. growth/yr (3Y)6.3%
7.0%Avg. growth/yr (5Y)7.8%
+11.5%Value creation/yr+10.4%
Balance & size
7.8×Interest coverage (EBIT/interest)5.1×
$195BMarket cap$45B
healthyGrowth qualityhealthy

McDonald’s leads: 8 to 5 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

McDonald’sof which business quality 65 · market factors 42 Yum! Brandsof which business quality 67 · market factors 57
ProfitabilityMargins and returns on capital today
64
84
Quality GrowthAre margins and returns improving?
46
30
CashflowEarnings quality: real cash, not paper profit
76
74
Fin. StrengthBalance sheet, leverage, solvency risk
53
48
InvestmentDisciplined investing over empire-building
57
63
Low VolatilityCalm price path (market factor)
96
88
MomentumPrice trend over the last 3–12 months (market factor)
26
43
52W MomentumDistance to the 52-week high (market factor)
8
45
Net IssuanceBuybacks instead of dilution
91
99

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyMcDonald’sPrice $260Yum! BrandsPrice $153
DCF Models-55%below the price$117-70%below the price$46.36
Earnings-Based-61%below the price$102-66%below the price$51.72
Dividend Discount-62%below the price$98.39n/a
Multiples-13%close to the price$225-33%below the price$102
Growth DCF-77%below the price$58.72-83%below the price$25.54
Economic Profit-56%below the price$113-72%below the price$42.38
Growth Earnings-19%below the price$209-38%below the price$93.99
Minimum-77%below the price$58.72-83%below the price$25.54
Maximum-13%close to the price$225-33%below the price$102
Median-56%below the price$113-68%below the price$49.04
Geometric mean-54%below the price$121-65%below the price$53.99

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

McDonald’s: 20 of 21 models see the stock below the current price.

Yum! Brands: 18 of 18 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

McDonald’s
Bear $98.03Fair Value $149Bull $233
$260 = current price (white tick)
Yum! Brands
Bear $35.43Fair Value $58.17Bull $103
$153 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

McDonald’s · Consumer Discretionary

Quality score69 · Top 25%
Fair value upside-43% · below median

Yum! Brands · Consumer Discretionary

Quality score70 · Top 25%
Fair value upside-62% · bottom 25%

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees McDonald’s as the less overvalued of the two: McDonald’s trades at $260 versus a fair value of $149 (-43%), while Yum! Brands trades at $153 versus $58.17 (-62%).

Yum! Brands has the higher quality score (70/100).

See the full analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.