McDonald's Corporation (MCD) vs Microsoft Corporation (MSFT)
MSFT leads on 10 of 13 compared metrics.
A side-by-side comparison of McDonald's Corporation and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
MCD
McDonald's Corporation
$284.81Consumer Cyclical
MSFT
Microsoft Corporation
$390.74Technology
Total return — MCD vs MSFT
growth of $100 · last 30yMCD +1092.7%MSFT +4915.9%MSFT compounded faster
MCD MSFT
MCD vs MSFT: by the numbers
- •MSFT is the larger company ($2.90T vs $202.36B market cap).
- •MSFT trades at the lower earnings multiple (23.26 vs 23.48 P/E).
- •MSFT converts more revenue to profit (39.34% vs 31.62% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 6.95% CAGR).
- •MCD pays the higher dividend yield (2.58% vs 0.91%).
Which is better, MCD or MSFT?
Metric tally: MCD 3 · MSFT 10It depends on what you're optimizing for:
GrowthMSFT(faster 5Y revenue CAGR)
IncomeMCD(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | MCD | MSFT |
|---|---|---|
| P/E ratio | 23.48 | 23.26 |
| Forward P/E | 20.06 | 20.11 |
| P/S ratio | 7.40● | 9.14 |
| P/B ratio | — | 7.02 |
| PEG ratio | 5.30 | 2.34● |
| EV / EBITDA | 17.22 | 14.60● |
| FCF yield | 3.46%● | 2.51% |
Profitability
| Metric | MCD | MSFT |
|---|---|---|
| Gross margin | 57.35% | 68.31%● |
| Operating margin | 46.01% | 46.80% |
| Net margin | 31.62% | 39.34%● |
| ROE | -478.38% | 30.22%● |
| ROIC | 17.44% | 21.63%● |
Dividends
| Metric | MCD | MSFT |
|---|---|---|
| Dividend yield | 2.58%● | 0.91% |
| Payout ratio | 61.25% | 25.99% |
Growth (annualized)
| Metric | MCD | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 6.95% | 14.75%● |
| EPS CAGR (5Y) | 13.58% | 18.68%● |
| FCF CAGR (5Y) | 5.78% | 6.27%● |
| Total return CAGR (5Y) | 6.16% | 9.56%● |
Frequently asked
- Which is better, MCD or MSFT?
- It depends on your goal. growth: MSFT (faster 5Y revenue CAGR); income: MCD (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 10 to 3.
- Is MCD or MSFT cheaper?
- On trailing earnings, MSFT is cheaper: MCD trades at a 23.48 P/E and MSFT at 23.26.
- Which has grown faster, MCD or MSFT?
- Over the past five years, MSFT grew revenue faster — MCD at a 6.95% CAGR versus MSFT at 14.75%.
- Does MCD or MSFT pay a bigger dividend?
- MCD yields 2.58% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is MCD or MSFT more profitable?
- MSFT runs the higher net margin — MCD at 31.62% versus MSFT at 39.34%.
- Which has been the better investment, MCD or MSFT?
- Over the past 10-year, MSFT delivered the higher annualized total return — MCD at 11.47% versus MSFT at 23.98%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
McDonald's P/E ratioMicrosoft P/E ratioMcDonald's dividend yieldMicrosoft dividend yieldMcDonald's ROEMicrosoft ROEMcDonald's operating marginMicrosoft operating marginMcDonald's revenue growthMicrosoft revenue growthMcDonald's free cash flowMicrosoft free cash flow
McDonald's & Microsoft appear in these rankings
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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 13, 2026.