COST vs MCD: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and McDonald's Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
VS
McDonald's Corporation · Consumer Cyclical
$252.78
+40.7% upside to fair value
Med Conviction
Grade A
High Quality
QuantHub Verdict
MCD has more upside to fair value
(+40.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
COST |
MCD |
| Current Price |
$896.48 |
$252.78 |
| Fair Value Estimate |
$1,117.50 |
$355.71 |
| Upside to Fair Value |
+24.7%
|
+40.7%
|
| Market Cap |
$397.6B |
$179.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
32.7x
|
15.5x
|
| Price / Sales |
1.3x
|
6.5x
|
| Price / FCF |
42.4x
|
23.1x
|
| Revenue Growth YoY |
+11.1%
|
+3.8%
|
| Gross Margin |
17.5%
|
57.4%
|
| Operating Margin |
3.9%
|
45.8%
|
| Return on Equity |
28.0%
|
-561.2%
|
| Dividend Yield |
0.62% |
2.94% |
| FCF Yield |
2.36%
|
4.32%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
McDonald's operates a globally scaled, approximately 95% franchised restaurant system with 46,028 restaurants in more than 100 countries, combining a powerful consumer brand, real-estate-backed franchise economics, supplier scale and digital loyalty reach. Business quality is high despite meaningful leverage: TTM gross, operating and net margins are 57.4%, 45.8% and 31.7%, respectively, while loy…
Accumulation Zones
| Metric |
COST |
MCD |
| Zone Low |
$838.12 |
$266.78 |
| Zone High |
$949.88 |
$302.35 |
| In Buy Zone? |
Yes
|
Yes
|