MCD vs NKE: Which Is the Better Buy?

Side-by-side comparison of McDonald's Corporation and NIKE, Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-11.
McDonald's Corporation Β· Consumer Cyclical
$305.68
+4.7% upside to fair value
Med Conviction Grade B
VS
NIKE, Inc. Β· Consumer Cyclical
$42.62
+45.5% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
NKE has more upside to fair value (+45.5%). MCD trades at a lower forward P/E (24.5x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric MCD NKE
Current Price $305.68 $42.62
Fair Value Estimate $320.00 $62.00
Upside to Fair Value +4.7% +45.5%
Market Cap $218.1B $63.0B
Forward P/E 24.5x 27.9x
EV / EBITDA 18.6x 20.7x
Price / Sales 8.1x 1.4x
Price / FCF 30.3x 19.4x
Revenue Growth YoY +3.7% -9.8%
Gross Margin 57.4% 42.7%
Operating Margin 46.1% 8.0%
Return on Equity β€” 24.4%
Dividend Yield 2.4% 3.8%
FCF Yield 3.3% 5.2%
Analyst Consensus Buy Buy
Investment Thesis
MCD β€” McDonald's Corporation
McDonald's operates the world's largest quick-service restaurant franchise with over 40,000 locations across 100+ countries, generating $26.9B in FY2025 revenue with roughly 60% from franchised operations. The asset-light franchise model produces 46% operating margins and $7.2B in annual free cash flow. Revenue growth reaccelerated modestly to 3.7% in FY2025 from 1.7% in FY2024, driven by the Int…
NKE β€” 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 $240.00 $44.00
Zone High $272.00 $50.00
In Buy Zone? No Yes
← MCD Research    NKE Research β†’    All Research