MCD vs. ITW
MCD (McDonald's Corporation) and ITW (Illinois Tool Works Inc.) are both stocks. MCD operates in Restaurants (Consumer Cyclical), while ITW operates in Specialty Industrial Machinery (Industrials). Over the past 10 years, MCD returned 11.46%/yr vs 11.91%/yr for ITW. At a 0.32 correlation, their price movements are largely independent.
Performance
MCD vs. ITW - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, MCD achieves a -5.66% return, which is significantly lower than ITW's 5.18% return. Both investments have delivered pretty close results over the past 10 years, with MCD having a 11.46% annualized return and ITW not far ahead at 11.91%.
MCD
- 1D
- 0.01%
- 1M
- 3.75%
- YTD
- -5.66%
- 6M
- -8.96%
- 1Y
- -3.37%
- 3Y*
- 1.94%
- 5Y*
- 6.16%
- 10Y*
- 11.46%
ITW
- 1D
- 1.17%
- 1M
- 3.94%
- YTD
- 5.18%
- 6M
- 1.05%
- 1Y
- 9.30%
- 3Y*
- 4.14%
- 5Y*
- 4.45%
- 10Y*
- 11.91%
MCD vs. ITW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MCD McDonald's Corporation | -5.66% | 7.89% | 0.14% | 15.06% | 0.51% | 27.79% | 11.30% | 13.97% | 5.78% | 45.05% |
ITW Illinois Tool Works Inc. | 5.18% | -0.43% | -0.97% | 21.56% | -8.46% | 23.60% | 16.42% | 45.60% | -22.10% | 38.92% |
Correlation
The correlation between MCD and ITW is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.39 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Nov 5, 1987 | 0.32 |
Fundamentals
MCD:
$12.13
ITW:
$14.33
MCD:
23.48
ITW:
17.96
MCD:
3.78
ITW:
2.98
MCD:
7.42
ITW:
3.47
MCD:
$27.45B
ITW:
$16.22B
MCD:
$12.10B
ITW:
$7.16B
MCD:
$14.46B
ITW:
$4.61B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
MCD vs. ITW — Risk / Return Rank
MCD
ITW
MCD vs. ITW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for McDonald's Corporation (MCD) and Illinois Tool Works Inc. (ITW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| MCD | ITW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.58 | ||
| Sortino ratioReturn per unit of downside risk | -0.88 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.08 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | -0.20 | 0.42 | -0.62 |
| Martin ratioReturn relative to average drawdown | -0.50 | 0.92 | -1.42 |
Loading charts...
Drawdowns
MCD vs. ITW - Drawdown Comparison
The maximum MCD drawdown since its inception was -73.20%, which is greater than ITW's maximum drawdown of -54.90%. Use the drawdown chart below to compare losses from any high point for MCD and ITW.
Loading charts...
Drawdown Indicators
| MCD | ITW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.20% | -54.90% | -18.30% |
Max Drawdown (1Y)Largest decline over 1 year | -19.05% | -17.44% | -1.61% |
Max Drawdown (3Y)Largest decline over 3 years | -19.05% | -20.63% | +1.58% |
Max Drawdown (5Y)Largest decline over 5 years | -19.05% | -28.05% | +9.00% |
Max Drawdown (10Y)Largest decline over 10 years | -36.90% | -37.85% | +0.95% |
Current DrawdownCurrent decline from peak | -15.46% | -13.53% | -1.93% |
Average DrawdownAverage peak-to-trough decline | -14.89% | -9.84% | -5.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.53% | 7.95% | -0.42% |
Volatility
MCD vs. ITW - Volatility Comparison
McDonald's Corporation (MCD) and Illinois Tool Works Inc. (ITW) have volatilities of 4.96% and 4.87%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| MCD | ITW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.96% | 4.87% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 12.20% | 15.90% | -3.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.62% | 20.53% | -3.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.27% | 21.13% | -3.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.40% | 23.82% | -3.42% |
Dividends
MCD vs. ITW - Dividend Comparison
MCD's dividend yield for the trailing twelve months is around 2.58%, more than ITW's 2.46% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITW Illinois Tool Works Inc. | 2.46% | 2.53% | 2.29% | 2.07% | 2.30% | 1.91% | 2.17% | 2.30% | 2.81% | 1.71% | 1.96% | 2.23% |
MCD McDonald's Corporation | 2.58% | 2.35% | 2.34% | 2.10% | 2.15% | 1.96% | 2.35% | 2.39% | 2.36% | 2.23% | 2.97% | 2.91% |
Financials
MCD vs. ITW - Financials Comparison
This section allows you to compare key financial metrics between McDonald's Corporation and Illinois Tool Works Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
MCD vs. ITW - Profitability Comparison
MCD - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported a gross profit of 0.00 and revenue of 6.52B. Therefore, the gross margin over that period was 0.0%.
ITW - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Illinois Tool Works Inc. reported a gross profit of 1.76B and revenue of 4.02B. Therefore, the gross margin over that period was 43.8%.
MCD - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported an operating income of 2.95B and revenue of 6.52B, resulting in an operating margin of 45.3%.
ITW - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Illinois Tool Works Inc. reported an operating income of 1.02B and revenue of 4.02B, resulting in an operating margin of 25.4%.
MCD - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported a net income of 1.98B and revenue of 6.52B, resulting in a net margin of 30.4%.
ITW - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Illinois Tool Works Inc. reported a net income of 768.00M and revenue of 4.02B, resulting in a net margin of 19.1%.
Frequently Asked Questions
MCD and ITW have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MCD has higher volatility (4.96%) compared to ITW (4.87%). In terms of maximum drawdown, MCD dropped -73.20% vs ITW's -54.90%.
ITW currently has the higher Sharpe Ratio (0.36 vs -0.23), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for MCD and ITW
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer