Costco Wholesale Corporation (COST) vs McDonald's Corporation (MCD)
MCD leads on 9 of 15 compared metrics.
A side-by-side comparison of Costco Wholesale Corporation and McDonald's Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
COST
Costco Wholesale Corporation
$982.35Consumer Defensive
MCD
McDonald's Corporation
$284.81Consumer Cyclical
Not enough overlapping price history to compare COST and MCD.
COST vs MCD: by the numbers
- •COST is the larger company ($435.65B vs $202.36B market cap).
- •MCD trades at the lower earnings multiple (23.48 vs 49.41 P/E).
- •MCD converts more revenue to profit (31.62% vs 3.01% net margin).
- •COST grew revenue faster over the past five years (9.48% vs 6.95% CAGR).
- •MCD pays the higher dividend yield (2.58% vs 0.55%).
Which is better, COST or MCD?
Metric tally: COST 6 · MCD 9It depends on what you're optimizing for:
ValueMCD(lower P/E)
GrowthCOST(faster 5Y revenue CAGR)
IncomeMCD(higher dividend yield)
QualityCOST(higher ROIC)
Valuation
| Metric | COST | MCD |
|---|---|---|
| P/E ratio | 49.41 | 23.48● |
| Forward P/E | 43.40 | 20.06● |
| P/S ratio | 1.49● | 7.40 |
| P/B ratio | 13.03 | — |
| PEG ratio | 5.23 | 5.30 |
| EV / EBITDA | 29.43 | 17.22● |
| FCF yield | 2.02% | 3.46%● |
Profitability
| Metric | COST | MCD |
|---|---|---|
| Gross margin | 12.88% | 57.35%● |
| Operating margin | 3.82% | 46.01%● |
| Net margin | 3.01% | 31.62%● |
| ROE | 26.38%● | -478.38% |
| ROIC | 19.44%● | 17.44% |
Dividends
| Metric | COST | MCD |
|---|---|---|
| Dividend yield | 0.55% | 2.58%● |
| Payout ratio | 29.44% | 61.25% |
Growth (annualized)
| Metric | COST | MCD |
|---|---|---|
| Revenue CAGR (5Y) | 9.48%● | 6.95% |
| EPS CAGR (5Y) | 15.04%● | 13.58% |
| FCF CAGR (5Y) | 4.95% | 5.78%● |
| Total return CAGR (5Y) | 21.56%● | 6.16% |
Frequently asked
- Which is better, COST or MCD?
- It depends on your goal. value: MCD (lower P/E); growth: COST (faster 5Y revenue CAGR); income: MCD (higher dividend yield); quality: COST (higher ROIC). Across all compared metrics, MCD leads 9 to 6.
- Is COST or MCD cheaper?
- On trailing earnings, MCD is cheaper: COST trades at a 49.41 P/E and MCD at 23.48.
- Which has grown faster, COST or MCD?
- Over the past five years, COST grew revenue faster — COST at a 9.48% CAGR versus MCD at 6.95%.
- Does COST or MCD pay a bigger dividend?
- COST yields 0.55% and MCD yields 2.58% based on trailing dividends and the latest price.
- Is COST or MCD more profitable?
- MCD runs the higher net margin — COST at 3.01% versus MCD at 31.62%.
- Which has been the better investment, COST or MCD?
- Over the past 10-year, COST delivered the higher annualized total return — COST at 21.26% versus MCD at 11.47%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Costco Wholesale P/E ratioMcDonald's P/E ratioCostco Wholesale dividend yieldMcDonald's dividend yieldCostco Wholesale ROEMcDonald's ROECostco Wholesale operating marginMcDonald's operating marginCostco Wholesale revenue growthMcDonald's revenue growthCostco Wholesale free cash flowMcDonald's free cash flow
Costco Wholesale & McDonald's appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.