McDonald's or Starbucks: which stock is cheaper in 2026?
As of October 5, 2026, McDonald's (MCD) trades at 18.8× earnings (P/E) and Starbucks (SBUX) at 54.4×, according to Kaplio. The median across the 202 consumer cyclicals companies above $2bn in Kaplio's universe is 18.0×. Kaplio's verdict: McDonald's, cheap; Starbucks, expensive. Value range by multiples: $221–$328 for McDonald's and $31–$49 for Starbucks. Against its own value range, McDonald's is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| McDonald's (MCD) | Starbucks (SBUX) | |
|---|---|---|
| Summary valuation | cheap ($221–$328) | expensive ($31–$49) |
| The four lights | Valuation: P/E 18.8× (cheap) Business: 5-year ROIC 17.2 % (solid) Balance sheet: Net debt/EBITDA 3.7× (fragile) Results: 6 of 8 (on track) | Valuation: P/E 54.4× (expensive) Business: 5-year ROIC 15.1 % (solid) Balance sheet: Net debt/EBITDA 4.3× (fragile) Results: 3 of 8 (disappointing) |
| Expected return (per year) | +12.2 % a year (to 2028) | +12.7 % a year (to 2029) |
| Buffett method | quality 82 · would not approve | quality 61 · would not approve |
| Lynch method | stalwart · would wait | outside his circle |
Metrics side by side
| Metric | McDonald's (MCD) | Starbucks (SBUX) |
|---|---|---|
| Overview | ||
| Market Cap | $165B | $108B |
| Price | $231.89 | $94.71 |
| Valuation | ||
| P/E | 18.8× | 54.4× |
| P/B | -161× | -14.1× |
| P/S | 5.9× | 2.8× |
| EV/EBITDA | 14.4× | 21.4× |
| FCF Yield | 4.8 % | 3.4 % |
| Dividend Yield | 3.2 % | 2.6 % |
| Profitability | ||
| ROIC | 17.6 % | 9.0 % |
| ROE | — | -24.3 % |
| Gross Margin | 57.4 % | 31.7 % |
| Operating Margin | 45.8 % | 9.4 % |
| Net Margin | 31.7 % | 5.2 % |
| Growth | ||
| Revenue 5Y CAGR | 7.0 % | 9.6 % |
| EPS 5Y CAGR | 13.6 % | 15.6 % |
| FCF 5Y CAGR | 9.2 % | 84.5 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 3.7× | 4.3× |
| Debt / Equity | -53.4× | -2.9× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.