Coca-Cola vs McDonald's: Business Model & Financial Comparison 2026
Coca-Cola · Consumer Defensive / Beverages - Non-Alcoholic·McDonald's · Consumer Cyclical / Restaurants
Financial Comparison
| Metric | KOCoca-Cola | MCDMcDonald's |
|---|---|---|
| Market Cap | $333.96B | $232.32B |
| Revenue (TTM) | $47.94B | $26.88B |
| Revenue Growth | 2.4% | 9.7% |
| Gross Margin | 61.6% | 57.4% |
| Operating Margin | 24.7% | 45.1% |
| Net Margin | 27.3% | 31.9% |
| Return on Equity | 43.3% | N/A |
| P/E (Trailing) | 25.5x | 27.3x |
| P/E (Forward) | 22.4x | 22.7x |
| Free Cash Flow | $-1.46B | $6.30B |
| Cash | $15.81B | $774.0M |
| Total Debt | $47.91B | $54.83B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Coca-Cola
The Coca-Cola Company stands as a leading company in Consumer Defensive. Generating $47.94 billion in annual revenue (growing 2.4% year-over-year) and carrying a market capitalization of $331.35 billion, the company has cemented its position as a foundational player in the global Beverages - Non-Alcoholic landscape. Under the leadership of its leadership team, The Coca-Cola Company continues to execute on a multi-year strategic vision that balanc…
Full Coca-Cola analysis →McDonald's
McDonald's stands as the world's most valuable restaurant brand, serving 70 million customers daily in 100+ countries. Generating $26.88 billion in annual revenue (growing 9.7% year-over-year) and carrying a market capitalization of $233.67 billion, the company has cemented its position as a foundational player in the global Restaurants landscape. Under the leadership of Chris Kempczyk, McDonald's continues to execute on a multi-year strategic vi…
Full McDonald's analysis →SWOT Analysis Comparison
Strengths
Coca-Cola
- With a market capitalization of $331.35B, The Coca-Cola Company is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital acces
- The Coca-Cola Company's gross margin of 61.6% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 24.7% demonstrates
- A return on equity of 43.3% demonstrates that The Coca-Cola Company generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
McDonald's
- With a market capitalization of $233.67B, McDonald's is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smal
- McDonald's's gross margin of 57.4% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 45.1% demonstrates discipline
- McDonald's generated $6.30B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Weaknesses
Coca-Cola
- With a debt-to-equity ratio of 139.8, The Coca-Cola Company carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increa
- Revenue growth of 2.4% is below what growth investors typically seek, suggesting market saturation in core businesses or increasing competitive pressure.
McDonald's
- With 150,000 employees globally, McDonald's faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler comp
- Menu price inflation (20%+ since 2019) has pushed customers toward value-oriented competitors and grocery
- E. coli outbreak (October 2024, Quarter Pounder slivered onions) caused significant traffic and reputational damage
Opportunities
Coca-Cola
- The Coca-Cola Company operates in the Beverages - Non-Alcoholic segment of the broader Consumer Defensive sector, which represents a $12 trillion global consumer staples market. Even modest share gain
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for The Coc
- With $15.81B in cash and strong free cash flow generation, The Coca-Cola Company is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
McDonald's
- McDonald's operates in the Restaurants segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains in this environment tra
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for McDonal
- With $774.00M in cash and strong free cash flow generation, McDonald's is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Threats
Coca-Cola
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. The Coca-Cola Company's revenue is not fully insulated from macroeconomic cycles, and a rece
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on The Coca-Cola Compa
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
McDonald's
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. McDonald's's revenue is not fully insulated from macroeconomic cycles, and a recession scena
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on McDonald's's busine
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolCoca-Cola vs McDonald's: FAQ
- Is Coca-Cola bigger than McDonald's?
- By market capitalization, Coca-Cola is larger at $333.96B vs McDonald's's $232.32B.
- Which has better profit margins — Coca-Cola or McDonald's?
- McDonald's has higher net profit margins (31.9%) compared to Coca-Cola (27.3%). Gross and operating margins are compared in the table above.
- What sectors do Coca-Cola and McDonald's operate in?
- Coca-Cola operates in the Consumer Defensive sector (Beverages - Non-Alcoholic). McDonald's operates in the Consumer Cyclical sector (Restaurants).
- How does Coca-Cola's revenue compare to McDonald's's?
- Coca-Cola generates $47.94B in annual revenue (TTM) while McDonald's generates $26.88B. Coca-Cola is the larger company by revenue as of 2026.