MCD vs NKE: Which Is the Better Buy?

Side-by-side comparison of McDonald's Corporation and NIKE, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-09.
McDonald's Corporation · Consumer Cyclical
$275.75
+18.8% upside to fair value
Grade C High Quality
VS
NIKE, Inc. · Consumer Cyclical
$42.62
+38.4% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
NKE has more upside to fair value (+38.4%). MCD trades at a lower forward P/E (22.6x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric MCD NKE
Current Price $275.75 $42.62
Fair Value Estimate $327.62 $58.98
Upside to Fair Value +18.8% +38.4%
Market Cap $196.0B $63.0B
Forward P/E 22.6x 27.9x
EV / EBITDA 16.7x 20.7x
Price / Sales 7.1x 1.4x
Price / FCF 27.9x 19.4x
Revenue Growth YoY +9.4% -9.8%
Gross Margin 57.4% 42.7%
Operating Margin 46.0% 8.0%
Return on Equity -434.0% 24.4%
Dividend Yield 0% 3.8%
FCF Yield 3.59% 5.2%
Analyst Consensus Buy Buy
Investment Thesis
MCD — McDonald's Corporation
McDonald's Corporation operates a global quick-service restaurant business with a strong competitive moat driven by brand recognition, extensive franchising, and digital innovation. The company reported $26.9 billion in revenue for fiscal 2025, growing 4% year-over-year, with significant contributions from its International Operated Markets segment growing nearly 8%. Despite a high valuation regi…
NKE — NIKE, Inc.
Nike is the world's largest athletic footwear and apparel company with $46.3B in FY2025 revenue, operating across 190+ countries with the Nike, Jordan, and Converse brands. The stock trades near its 9-year low at $42.62 after an 11% single-day crash following a Q3 FY2026 earnings report that showed 35% net income decline and weak Q4 guidance calling for a further 2-4% revenue decline. FY2025 reve…
Accumulation Zones
Metric MCD NKE
Zone Low $245.72 $44.23
Zone High $278.48 $50.13
In Buy Zone? Yes Yes
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