MCD vs. T

Last updated Jun 16, 2026

MCD (McDonald's Corporation) and T (AT&T Inc.) are both stocks. MCD operates in Restaurants (Consumer Cyclical), while T operates in Telecom Services (Communication Services). Over the past 10 years, MCD returned 11.53%/yr vs 3.11%/yr for T. At a 0.30 correlation, their price movements are largely independent.

Performance

MCD vs. T - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in McDonald's Corporation (MCD) and AT&T Inc. (T). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCD achieves a -5.22% return, which is significantly lower than T's -4.15% return. Over the past 10 years, MCD has outperformed T with an annualized return of 11.53%, while T has yielded a comparatively lower 3.11% annualized return.

MCD

• 1D: 0.46%
• 1M: 4.22%
• YTD: -5.22%
• 6M: -9.12%
• 1Y: -2.93%
• 3Y*: 1.50%
• 5Y*: 6.38%
• 10Y*: 11.53%

T

• 1D: -1.23%
• 1M: -3.08%
• YTD: -4.15%
• 6M: -2.06%
• 1Y: -13.78%
• 3Y*: 19.48%
• 5Y*: 7.30%
• 10Y*: 3.11%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MCD vs. T - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MCD McDonald's Corporation	-5.22%	7.89%	0.14%	15.06%	0.51%	27.79%	11.30%	13.97%	5.78%	45.05%
T AT&T Inc.	-4.15%	13.97%	44.08%	-2.74%	5.76%	-8.09%	-21.37%	45.55%	-22.25%	-4.01%

Correlation

The correlation between MCD and T is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.24
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Jul 19, 1984	0.30

Fundamentals

EPS MCD : $12.13 T : $3.04
PE Ratio MCD : 23.58 T : 7.65
PEG Ratio MCD : 3.79 T : 0.32
PS Ratio MCD : 7.46 T : 1.33
Total Revenue (TTM) MCD : $27.45B T : $125.65B
Gross Profit (TTM) MCD : $12.10B T : $105.41B
EBITDA (TTM) MCD : $14.46B T : $54.70B

Return for Risk

MCD vs. T — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MCD

MCD Risk / Return Rank: 33
MCD Sharpe Ratio Rank: 35
MCD Sortino Ratio Rank: 28
MCD Omega Ratio Rank: 29
MCD Calmar Ratio Rank: 37
MCD Martin Ratio Rank: 36

T

T Risk / Return Rank: 16
T Sharpe Ratio Rank: 15
T Sortino Ratio Rank: 16
T Omega Ratio Rank: 17
T Calmar Ratio Rank: 19
T Martin Ratio Rank: 12

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MCD vs. T - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for McDonald's Corporation (MCD) and AT&T Inc. (T). 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	T	Difference
Sharpe ratio: Return per unit of total volatility	-0.18	-0.62	+0.45
Sortino ratio: Return per unit of downside risk	-0.14	-0.78	+0.64
Omega ratio: Gain probability vs. loss probability	0.98	0.91	+0.08
Calmar ratio: Return relative to maximum drawdown	-0.15	-0.63	+0.48
Martin ratio: Return relative to average drawdown	-0.39	-1.29	+0.90

MCD vs. T - Sharpe Ratio Comparison

The current MCD Sharpe Ratio is -0.18, which is higher than the T Sharpe Ratio of -0.62. The chart below compares the historical Sharpe Ratios of MCD and T, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MCD vs. T - Drawdown Comparison

The maximum MCD drawdown since its inception was -73.20%, which is greater than T's maximum drawdown of -64.15%. Use the drawdown chart below to compare losses from any high point for MCD and T.

Drawdown Indicators

	MCD	T	Difference
Max Drawdown Largest peak-to-trough decline	-73.20%	-64.15%	-9.05%
Max Drawdown (1Y) Largest decline over 1 year	-19.05%	-21.87%	+2.82%
Max Drawdown (3Y) Largest decline over 3 years	-19.05%	-21.87%	+2.82%
Max Drawdown (5Y) Largest decline over 5 years	-19.05%	-32.01%	+12.96%
Max Drawdown (10Y) Largest decline over 10 years	-36.90%	-42.35%	+5.45%
Current Drawdown Current decline from peak	-15.07%	-19.13%	+4.06%
Average Drawdown Average peak-to-trough decline	-14.89%	-15.72%	+0.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.57%	10.70%	-3.13%

Volatility

MCD vs. T - Volatility Comparison

The current volatility for McDonald's Corporation (MCD) is 4.94%, while AT&T Inc. (T) has a volatility of 8.27%. This indicates that MCD experiences smaller price fluctuations and is considered to be less risky than T based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCD	T	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	8.27%	-3.33%
Volatility (6M) Calculated over the trailing 6-month period	12.21%	17.84%	-5.63%
Volatility (1Y) Calculated over the trailing 1-year period	16.65%	22.21%	-5.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.28%	24.03%	-6.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.41%	23.74%	-3.33%

Dividends

MCD vs. T - Dividend Comparison

MCD's dividend yield for the trailing twelve months is around 2.57%, less than T's 4.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MCD McDonald's Corporation	2.57%	2.35%	2.34%	2.10%	2.15%	1.96%	2.35%	2.39%	2.36%	2.23%	2.97%	2.91%
T AT&T Inc.	4.77%	4.47%	4.87%	6.62%	6.66%	8.46%	7.23%	5.22%	7.01%	5.04%	4.51%	5.46%

Financials

Frequently Asked Questions

Can I hold both MCD and T in my portfolio?

MCD and T have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MCD or T?

T has higher volatility (8.27%) compared to MCD (4.94%). In terms of maximum drawdown, MCD dropped -73.20% vs T's -64.15%.

Which has better risk-adjusted returns?

MCD currently has the higher Sharpe Ratio (-0.18 vs -0.62), 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.