PEP vs. MCD

Last updated Apr 1, 2026

Compare and contrast key facts about PepsiCo, Inc. (PEP) and McDonald's Corporation (MCD).

Performance

PEP vs. MCD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PepsiCo, Inc. (PEP) and McDonald's Corporation (MCD). The values are adjusted to include any dividend payments, if applicable.

PEP vs. MCD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PEP PepsiCo, Inc.	9.17%	-1.85%	-7.60%	-3.29%	6.78%	20.56%	11.67%	27.38%	-4.81%	17.82%
MCD McDonald's Corporation	2.26%	7.89%	0.14%	15.06%	0.51%	27.79%	11.30%	13.97%	5.78%	45.05%

Fundamentals

Market Cap PEP : $212.90B MCD : $221.97B
EPS PEP : $6.00 MCD : $11.96
PE Ratio PEP : 25.86 MCD : 25.98
PEG Ratio PEP : 9.18 MCD : 4.20
PS Ratio PEP : 2.27 MCD : 8.28
Total Revenue (TTM) PEP : $93.93B MCD : $26.89B
Gross Profit (TTM) PEP : $50.86B MCD : $15.31B
EBITDA (TTM) PEP : $14.39B MCD : $14.22B

Returns By Period

In the year-to-date period, PEP achieves a 9.17% return, which is significantly higher than MCD's 2.26% return. Over the past 10 years, PEP has underperformed MCD with an annualized return of 7.32%, while MCD has yielded a comparatively higher 12.03% annualized return.

PEP

• 1D: -0.98%
• 1M: -7.70%
• YTD: 9.17%
• 6M: 12.65%
• 1Y: 7.72%
• 3Y*: -1.95%
• 5Y*: 5.12%
• 10Y*: 7.32%

MCD

• 1D: 0.73%
• 1M: -8.37%
• YTD: 2.26%
• 6M: 3.46%
• 1Y: 1.80%
• 3Y*: 6.00%
• 5Y*: 9.10%
• 10Y*: 12.03%

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

Return for Risk

PEP vs. MCD — Risk / Return Rank

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

PEP

PEP Risk / Return Rank: 52
PEP Sharpe Ratio Rank: 55
PEP Sortino Ratio Rank: 48
PEP Omega Ratio Rank: 45
PEP Calmar Ratio Rank: 55
PEP Martin Ratio Rank: 55

MCD

MCD Risk / Return Rank: 44
MCD Sharpe Ratio Rank: 46
MCD Sortino Ratio Rank: 37
MCD Omega Ratio Rank: 37
MCD Calmar Ratio Rank: 51
MCD Martin Ratio Rank: 52

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.

PEP vs. MCD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PepsiCo, Inc. (PEP) and McDonald's Corporation (MCD). 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.

	PEP	MCD	Difference
Sharpe ratio Return per unit of total volatility	0.35	0.10	+0.24
Sortino ratio Return per unit of downside risk	0.70	0.27	+0.43
Omega ratio Gain probability vs. loss probability	1.08	1.03	+0.05
Calmar ratio Return relative to maximum drawdown	0.54	0.33	+0.21
Martin ratio Return relative to average drawdown	1.11	0.79	+0.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PEP vs. MCD - Sharpe Ratio Comparison

The current PEP Sharpe Ratio is 0.35, which is higher than the MCD Sharpe Ratio of 0.10. The chart below compares the historical Sharpe Ratios of PEP and MCD, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	PEP	MCD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.35	0.10	+0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.54	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.38	0.59	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.54	-0.15

Correlation

The correlation between PEP and MCD is 0.35, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

PEP vs. MCD - Dividend Comparison

PEP's dividend yield for the trailing twelve months is around 3.66%, more than MCD's 2.34% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PEP PepsiCo, Inc.	3.66%	3.92%	3.51%	2.91%	2.50%	2.45%	2.71%	2.77%	3.25%	2.64%	2.83%	2.76%
MCD McDonald's Corporation	2.34%	2.35%	2.34%	2.10%	2.15%	1.96%	2.35%	2.39%	2.36%	2.23%	2.97%	2.91%

Drawdowns

PEP vs. MCD - Drawdown Comparison

The maximum PEP drawdown since its inception was -73.92%, roughly equal to the maximum MCD drawdown of -73.20%. Use the drawdown chart below to compare losses from any high point for PEP and MCD.

Drawdown Indicators

	PEP	MCD	Difference
Max Drawdown Largest peak-to-trough decline	-73.92%	-73.20%	-0.72%
Max Drawdown (1Y) Largest decline over 1 year	-15.14%	-10.60%	-4.54%
Max Drawdown (5Y) Largest decline over 5 years	-30.32%	-17.23%	-13.09%
Max Drawdown (10Y) Largest decline over 10 years	-30.32%	-36.90%	+6.58%
Current Drawdown Current decline from peak	-12.39%	-8.37%	-4.02%
Average Drawdown Average peak-to-trough decline	-13.64%	-14.90%	+1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.37%	4.52%	+2.85%

Volatility

PEP vs. MCD - Volatility Comparison

PepsiCo, Inc. (PEP) has a higher volatility of 5.35% compared to McDonald's Corporation (MCD) at 4.79%. This indicates that PEP's price experiences larger fluctuations and is considered to be riskier than MCD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEP	MCD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.35%	4.79%	+0.56%
Volatility (6M) Calculated over the trailing 6-month period	14.83%	11.76%	+3.07%
Volatility (1Y) Calculated over the trailing 1-year period	22.46%	17.27%	+5.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.11%	17.06%	+1.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.55%	20.32%	-0.77%

Financials

PEP vs. MCD - Profitability Comparison

The chart below illustrates the profitability comparison between PepsiCo, Inc. and McDonald's Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

PEP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, PepsiCo, Inc. reported a gross profit of 15.62B and revenue of 29.34B. Therefore, the gross margin over that period was 53.2%.

MCD - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, McDonald's Corporation reported a gross profit of 3.91B and revenue of 7.01B. Therefore, the gross margin over that period was 55.8%.

PEP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, PepsiCo, Inc. reported an operating income of 3.56B and revenue of 29.34B, resulting in an operating margin of 12.1%.

MCD - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, McDonald's Corporation reported an operating income of 3.16B and revenue of 7.01B, resulting in an operating margin of 45.1%.

PEP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, PepsiCo, Inc. reported a net income of 2.54B and revenue of 29.34B, resulting in a net margin of 8.7%.

MCD - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, McDonald's Corporation reported a net income of 2.16B and revenue of 7.01B, resulting in a net margin of 30.9%.