Compare · MCD and SBUX
McDonald's vs. Starbucks
Revenue, growth, margins, cash flow and cash returned, side by side from each company's latest annual report.
McDonald's franchises the great majority of its restaurants and earns mostly rent and royalties from franchisees. Starbucks earns mainly from stores it runs itself, plus licensed stores and packaged coffee. Below are the figures each one reported in its latest annual report (Form 10-K), side by side, with links to the filing behind every number. Starbucks' fiscal year ends on September 28 and McDonald's on December 31, so the two years overlap by nine months. Why fiscal years differ.
Comparing McDonald's fiscal 2025 (ended Dec 31, 2025) with Starbucks fiscal 2025 (ended Sep 28, 2025)
McDonald'sStarbucks
Each pair of bars shows both companies on one scale. Their fiscal years end on different dates, so the periods overlap but aren't identical.
Revenue and growth
| Company | Prior year | Latest year | Change |
|---|---|---|---|
| McDonald's (FY2024 to FY2025) | $25.9B | $26.9B | +3.7% |
| Starbucks (FY2024 to FY2025) | $36.2B | $37.2B | +2.8% |
McDonald's reports total revenues: sales at restaurants it runs itself, plus rent, royalties and fees from franchisees. Starbucks reports total net revenues: sales at company-operated stores, plus royalties and supplies from licensed stores and packaged coffee sold through others.
Margins
| Company | Revenue | Operating income | Operating margin | Net income | Net margin |
|---|---|---|---|---|---|
| McDonald's FY2025 | $26.9B | $12.4B | 46.1% | $8.6B | 31.9% |
| Starbucks FY2025 | $37.2B | $2.9B | 7.9% | $1.9B | 5.0% |
Margin is the profit line divided by revenue, worked out by Ticker Sage from the linked figures. What profit margins measure.
Cash flow and cash returned
| Company | Cash from operations | Capital spending | Free cash flow | Buybacks | Dividends paid |
|---|---|---|---|---|---|
| McDonald's FY2025 | $10.6B | $3.4B | $7.2B | $2.1B | $5.1B |
| Starbucks FY2025 | $4.7B | $2.3B | $2.4B | $0 | $2.8B |
Capital spending is property and equipment for both companies, as each company labels it in the cash flow statement. Free cash flow isn't a GAAP line; Ticker Sage works it out the same way for both. How free cash flow works · How buybacks work · How dividends work.
How each one makes money
McDonald's
The great majority of its restaurants are franchised. Its revenue is mostly rent and royalties from franchisees, plus sales at restaurants it runs itself.
It reports three segments: the US; International Operated Markets such as the UK, Germany, France and Australia; and International Developmental Licensed Markets, which are run mostly by licensees. Its fiscal year is the calendar year.
Starbucks
North America and International earn money mainly from company-operated stores, plus royalties and product sales to licensed stores. Channel Development sells packaged coffee and ready-to-drink beverages, largely through partnerships with Nestlé and PepsiCo.
Its fiscal year ends on the Sunday closest to September 30. Fiscal 2025 ended Sep 28, 2025.
Main risks each one lists
McDonald's
- It competes with other restaurants and food retailers on price, value and convenience.
- Lower-income customers cutting back can hurt traffic.
- Its results depend on franchisees running restaurants well and staying profitable.
- Food safety problems can damage the brand.
- Food, labor and other costs affect restaurant margins.
Starbucks
- Fewer visits or smaller orders at US stores hurt results quickly.
- Its plan to change store operations and menus may not work as intended.
- Wages, staffing and union organizing affect store costs.
- Coffee bean prices and tariffs can raise costs.
- Results in China and other markets face strong local competition.
How they differ
- Size. Starbucks reported $37.2B of revenue for fiscal 2025, and McDonald's $26.9B for fiscal 2025.
- Growth. McDonald's revenue grew 3.7% in its latest year and Starbucks' 2.8%.
- Margins. Starbucks kept 5.0% of revenue as net income and McDonald's 31.9%.
- Fiscal calendar. Starbucks' year ends in September, McDonald's in December, so news in one company's latest 10-K can be up to three months newer than in the other's.
- Ownership model. Most McDonald's restaurants are franchised. Most Starbucks revenue in North America and International comes from company-operated stores.
- Packaged products. Starbucks' Channel Development sells packaged coffee and ready-to-drink beverages, largely through partnerships with Nestlé and PepsiCo.
- Where the money goes. In the latest year Starbucks spent $0 on buybacks and $2.8B on dividends, and McDonald's $2.1B and $5.1B.
Differences in size, growth or margin describe the past year only. None of this says which business will do better.
Sources
- McDonald's Form 10-K for fiscal 2025, filed Feb 24, 2026
- Starbucks Form 10-K for fiscal 2025, filed Nov 14, 2025
McDonald's company file → · Starbucks company file →
Common questions
Which is bigger by revenue, Starbucks or McDonald's?
Starbucks reported $37.2B of revenue for fiscal 2025 and McDonald's $26.9B for fiscal 2025. Their fiscal years end on different dates.
Does McDonald's own its restaurants?
Most are franchised. Its revenue is mostly rent and royalties from franchisees, plus sales at the restaurants it runs itself.
How do their profit margins compare?
In the latest fiscal year Starbucks' net margin was 5.0% and McDonald's was 31.9%, worked out from the net income and revenue in each 10-K.
Where do these numbers come from?
From each company's latest Form 10-K filed with the SEC. Every figure on this page links to the filing it came from.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Oct 25, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Oct 26, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn · Methodology & Disclosures explains where every number comes from.