MCD vs WMT: How McDonald's and Walmart Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: MCD is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MCD and WMT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MCD and WMT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

McDonald's is the world's largest restaurant company by system-wide sales, operating and franchising roughly 43,000 quick-service restaurants across more than 100 countries. The menu centers on burgers, fries, chicken, breakfast, and beverages. The business is fundamentally a franchising and real estate model: about 95% of McDonald's locations are owned and operated by independent franchisees, and the company collects rent and royalties on system sales rather than running most restaurants directly. This asset-light structure produces high margins and steady, recurring cash flow. McDonald's also owns much of the real estate beneath its restaurants, making property income a meaningful and durable revenue stream. Growth levers include digital ordering, delivery partnerships, the loyalty program, value menus, and the CosMc's beverage concept. Founded in 1955 and headquartered in Chicago, McDonald's is one of the most recognizable consumer brands in the world and a long-standing dividend grower.

Full MCD guide

Walmart is the largest retailer in the world by revenue and the biggest private employer in the United States. It runs more than 10,000 stores and clubs globally under the Walmart and Sam's Club banners, plus a large and fast-growing e-commerce and digital business. Its core proposition is everyday low prices on groceries and general merchandise, achieved through enormous purchasing scale and a highly efficient supply chain. Walmart makes most of its money from US grocery and general merchandise, but it is increasingly building higher-margin profit engines on top of that traffic: Walmart Connect (a retail advertising business), Walmart+ (a subscription membership), marketplace and fulfillment services for third-party sellers, and financial and health services. Roughly a quarter of revenue comes from outside the US, led by operations in Mexico (Walmex), China, and India (Flipkart). Headquartered in Bentonville, Arkansas, Walmart is a defensive, scale-driven retailer competing with Amazon, Costco, and Target.

Full WMT guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• MCD drivers: Franchise and real estate model; Digital, delivery, and loyalty.
• WMT drivers: Advertising and high-margin profit pools; Omnichannel scale and grocery dominance.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: McDonald's faces traffic pressure when value-seeking consumers cut discretionary spending or perceive fast food as no longer cheap after years of price increases. For WMT, walmart's core retail margins are thin, so it depends on enormous volume and on the new high-margin businesses scaling to lift profitability.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick MCD if you believe its drivers more; WMT if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the MCD and WMT guides.

MCD. McDonald's trades at a premium to the broad market, reflecting the durability of its franchise and real estate model, its global scale, and a multi-decade dividend-growth record. The valuation embeds steady mid-single-digit system-sales growth and reliable cash generation rather than rapid expansion. The premium has historically compressed only during periods of weak same-store traffic.

WMT. Walmart trades at a historically high P/E for a retailer, reflecting the market's enthusiasm for its higher-margin advertising, marketplace, and membership businesses layered on a defensive grocery base. The thin core margin means earnings growth depends heavily on these new profit pools scaling. Walmart is valued as a quality, recession-resilient compounder rather than a pure low-margin retailer.

Headline figures (approximate, early 2026): MCD shows revenue (ttm) ~$26 billion (company revenue; system-wide sales are far larger at ~$130 billion+), operating margin ~45% (high, due to the franchise and royalty model), net income (ttm) ~$8.5 billion, eps (ttm) ~$11.80; WMT shows revenue (ttm) ~$680 billion, operating margin ~4-4.5% (thin, by design), net income (ttm) ~$17-20 billion, eps (ttm) ~$2.30-2.60 adjusted.

MCD and WMT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MCD and WMT exposure against your real portfolio. It is not an investment adviser.