# How McDonald's (MCD) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/mcd
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on MCD alone. It places MCD (McDonald's Corporation) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where MCD stands in the market, and of the alternatives worth a closer look.

Period covered: MCD's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** MCD has gone against the market, falling 18.6% over the past 6 months while the S&P 500 rose 9.1%. MCD is 26.3% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record.
- **Stock or market?:** The weakness is MCD's own: it fell 7.2% over the past 3 months while the consumer discretionary sector ETF XLY (State Street Consumer Discretionary Select Sector SPDR ETF) rose 1.0%. The S&P 500 rose 3.9%. Its restaurant peers did not move as one over the past 3 months: YUM (Yum! Brands) rose 3.4%, while BROS (Dutch Bros) fell 33.9%.
- **Past 1 to 3 years:** Over the past year, MCD fell 17.8% while the S&P 500 rose 15.8%. The same gap shows up over 3 years (2.7% against 89.3%). That said, MCD lagged its restaurant peers in 2023, then moved up the pack in 2025.
- **Long term:** MCD turned $10,000 into $28,100 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** MCD fell less than the S&P 500 in five of seven sell-offs, but the Covid crash broke the pattern: it fell 36.1%, more than the S&P 500's 33.7%.
- **Diversification:** Against the S&P 500, MCD has a correlation of 0.38 over 5 years, less closely than 53% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge. Over 10 years, MCD's beta versus the S&P 500 was 0.52: 58% of the S&P 500's gains in rising months and 52% of its losses in falling ones.
- **Better options**
  - **Popular alternatives:** KO (Coca-Cola) earned more than MCD with less volatility over the past 5 years: 14.7% a year at 16.8% volatility, against 2.9% a year at 17.9%.
  - **Nearby categories and themes:** MNST (Monster Beverage, food & beverages) earned more for the risk it took than MCD over the past 5 years, and its worst fall in 10 years was 30.4%, against 36.9% for MCD.
  - **Whole market:** 319 of the 3,633 stocks and funds worth at least $500 million earned more than MCD with less volatility over the past 5 years, among them VOO (Vanguard S&P 500 ETF), IVV (iShares Core S&P 500 ETF) and VXUS (Vanguard Total International Stock ETF).

## How much would $10,000 in MCD have grown?

This chart tracks a hypothetical $10,000 investment in MCD over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of MCD over the same span and MCD's popular alternatives, among those that traded for the entire period.

- $10,000 invested in MCD at the end of September 1997 would have grown to $187,146 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of MCD, and DRI finished highest, at $533,910.

## MCD at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- MCD is still 26.3% below its all-time high.
- MCD's deepest decline since it began trading in 1986 was 73.7%, from November 1999 to March 2003. It took about four years from the low to climb back to its old high.
- Over 29 full calendar years, MCD's best was 1998, when it returned 61.7%, and its worst was 2002, when it lost 38.4%. It lost money in five of those years.

- Type: Stock, Consumer Discretionary (Restaurants)
- Trading since: October 17, 1986
- Market value: $174B
- Volatility (5 years): 17.9%; Sharpe ratio: 0.25
- Worst decline ever: −73.7%, from November 12, 1999 to March 12, 2003; back at its high by December 8, 2006

| Period | MCD total return |
| --- | --- |
| 1 month | −0.5% |
| 3 months | −7.2% |
| 6 months | −18.6% |
| year to date | −17.1% |
| 1 year | −17.8% |
| 3 years | +2.7% |
| 5 years | +15.5% |
| 10 years | +181% |

## MCD against the whole market

Where MCD ranks among every stock and fund, and what across the market has done better.

### How does MCD rank among all stocks?

This section ranks MCD on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- MCD is among the steadier stocks: its price swings rank in the top 2% of the 2,893 stocks worth at least $300 million, where the top is the calmest.
- MCD's 1-year return ranks in the bottom 21% of the 3,287 stocks worth at least $300 million with 1 year of history.

| Measure | MCD | Rank |
| --- | --- | --- |
| 1-year return | −17.8% | 2,583 of 3,287 (top 79%) |
| 3-year return | +2.7% | 2,285 of 3,017 (top 76%) |
| 5-year return | +15.5% | 1,516 of 2,893 (top 53%) |
| 10-year return | +181% | 943 of 2,202 (top 43%) |
| Volatility, 5 years | 17.9% | 46 of 2,893 (top 2%) |
| Sharpe ratio, 5 years | 0.25 | 1,695 of 2,893 (top 59%) |
| Worst decline, past 10 years | −36.9% | 85 of 2,187 (top 4%) |

### What has beaten MCD on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- Eight stocks and 311 ETFs worth at least $500 million sit in the green region: each earned more than MCD over the past 5 years with smaller price swings. That is 9% of the 3,633 screened.
- Among those with at least half MCD's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 38% less than MCD's 17.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.25 for MCD.
- Among MCD's popular alternatives, KO is in the region. KO earned 14.7% a year against 2.9% a year for MCD, at 16.8% volatility, 7% less than MCD's 17.9%.

### Is there a better investment than MCD?

The table below lists investments that beat MCD over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among MCD's popular alternatives, KO earned more than MCD with less volatility over the past 5 years: 14.7% a year at 16.8% volatility, against 2.9% a year at 17.9%.
- Looking beyond its popular alternatives, MNST (food & beverages) earned more for the risk it took than MCD over the past 5 years, and its worst fall in 10 years was 30.4%, against 36.9% for MCD.
- Across the whole market, 319 of the 3,633 stocks and funds worth at least $500 million earned more than MCD with less volatility over the past 5 years, among them VOO, IVV and VXUS.

The 15 strongest of 319 investments that beat MCD over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with MCD | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| MCD: McDonald's Corporation (this page) |  | +2.9% | 17.9% | 0.25 | −36.9% | +181% |  |  |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | -0.08 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USFR: WisdomTree Floating Rate Treasury Fund | Treasury Bonds | +4.0% | 0.4% | 9.69 | −0.8% | +28.2% | -0.15 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VRIG: Invesco Variable Rate Investment Grade ETF | Bonds | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | -0.01 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.35 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLRT: Pacer Aristotle Pacific Floating Rate High Income ETF | Financials | +6.0% | 2.3% | 2.55 | −21.0% | +58.0% | 0.13 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLOT: iShares Floating Rate Bond ETF | Floating Rate Bonds | +4.5% | 1.8% | 2.48 | −13.5% | +35.9% | -0.04 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.58 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [EP-PC](https://easycompare.io/research/ep-pc): El Paso Energy Capital Trust I PFD CV TR SECS | Preferred Stocks | +5.2% | 8.9% | 0.61 | −25.4% | +37.8% | 0.09 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [DFAC](https://easycompare.io/research/dfac): Dimensional - US Core Equity 2 ETF | US Total Market | +11.4% | 17.0% | 0.72 | −23.1% | — | 0.43 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| PJUL: Innovator U.S. Equity Power Buffer ETF | Broad Market | +10.5% | 8.6% | 1.20 | −18.2% | — | 0.41 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | Multi-Asset | +11.1% | 10.5% | 1.05 | −13.6% | — | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VNLA: Janus Henderson Short Duration Income ETF | Bonds | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JEPI](https://easycompare.io/research/jepi): JPMorgan Equity Premium Income ETF | Equity Income | +7.5% | 11.0% | 0.71 | −13.7% | — | 0.64 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLTR: VanEck IG Floating Rate ETF | Multi-Asset | +4.8% | 2.1% | 2.20 | −17.8% | +41.8% | -0.07 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLRN: State Street SPDR Bloomberg Investment Grade Floating Rate ETF | Bonds | +4.5% | 1.7% | 2.58 | −14.7% | +35.9% | 0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## MCD against its popular alternatives

The investments people most often weigh against MCD, compared period by period and year by year.

### How do MCD's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only KO was both more rewarding and calmer than MCD over the past 5 years, earning a higher annual return with lower volatility.
- 14 of the 23 popular alternatives earned less than MCD over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, MCD returned 2.9% a year, less than the S&P 500's 12.7%, with higher volatility (17.9% against 17.1%).

### Has MCD consistently beaten its popular alternatives?

This section compares MCD with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Nine of the 25 popular alternatives, led by DRI, USFD and KO, outperformed MCD in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- DRI, USFD and KO outperformed MCD in every long-term period and in all but one short-term period, the most consistent record in the group.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of MCD | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| MCD: McDonald's Corporation (this page) | −17.8% | +2.7% | +15.5% | +181% |  |  | 0.25 |
| DRI: Darden Restaurants, Inc. | +19.7% | +70.6% | +79.7% | +361% | 5/5 short-term, 3/3 long-term | all-weather | 0.57 |
| USFD: US Foods Holding Corp. | +35.0% | +178% | +178% | +347% | 5/5 short-term, 3/3 long-term | all-weather | 0.84 |
| [KO](https://easycompare.io/research/ko): The Coca-Cola Company | +40.2% | +86.8% | +98.2% | +204% | 5/5 short-term, 3/3 long-term | all-weather | 0.91 |
| [YUM](https://easycompare.io/research/yum): Yum! Brands, Inc. | +4.3% | +34.0% | +32.5% | +192% | 5/5 short-term, 3/3 long-term | all-weather | 0.37 |
| CAKE: The Cheesecake Factory Incorporated | +118% | +305% | +216% | +187% | 5/5 short-term, 3/3 long-term | all-weather | 0.78 |
| TXRH: Texas Roadhouse, Inc. | −3.9% | +84.4% | +109% | +405% | 4/5 short-term, 3/3 long-term | all-weather | 0.64 |
| EAT: Brinker International, Inc. | +50.5% | +492% | +342% | +337% | 4/5 short-term, 3/3 long-term | all-weather | 0.86 |
| QSR: Restaurant Brands International Inc. | +14.9% | +27.3% | +46.8% | +127% | 5/5 short-term, 2/3 long-term | consistent | 0.45 |
| [SYY](https://easycompare.io/research/syy): Sysco Corporation | +6.7% | +37.6% | +18.7% | +126% | 5/5 short-term, 2/3 long-term | consistent | 0.27 |
| [SBUX](https://easycompare.io/research/sbux): Starbucks Corporation | +20.6% | +13.8% | −1.7% | +130% | 5/5 short-term, 1/3 long-term |  | 0.15 |
| SHAK: Shake Shack Inc. | −24.7% | +27.0% | −5.7% | +115% | 3/5 short-term, 1/3 long-term |  | 0.24 |
| CAVA: CAVA Group, Inc. | −7.8% | +74.1% | — | — | 3/5 short-term, 1/3 long-term |  | — |
| WING: Wingstop Inc. | −48.6% | −26.3% | −17.2% | +479% | 1/5 short-term, 1/3 long-term |  | 0.19 |
| [CMG](https://easycompare.io/research/cmg): Chipotle Mexican Grill, Inc. | −28.8% | −19.0% | −18.7% | +266% | 1/5 short-term, 1/3 long-term |  | 0.06 |
| BROS: Dutch Bros Inc. | −21.9% | +73.0% | −28.7% | — | 1/5 short-term, 1/3 long-term |  | 0.20 |
| YUMC: Yum China Holdings, Inc. | +2.9% | −7.1% | −19.4% | +108% | 5/5 short-term, 0/3 long-term |  | 0.07 |
| [PEP](https://easycompare.io/research/pep): PepsiCo, Inc. | −9.2% | −6.7% | −2.3% | +72.6% | 5/5 short-term, 0/3 long-term |  | 0.07 |
| BLMN: Bloomin' Brands, Inc. | +39.4% | −50.5% | −44.8% | −23.3% | 5/5 short-term, 0/3 long-term |  | 0.08 |
| DIN: Dine Brands Global, Inc. | +19.0% | −26.3% | −51.3% | −38.2% | 5/5 short-term, 0/3 long-term |  | -0.11 |
| LW: Lamb Weston Holdings, Inc. | −15.6% | −33.9% | +3.1% | — | 5/5 short-term, 0/3 long-term |  | 0.22 |
| SG: Sweetgreen, Inc. | +43.6% | −2.3% | — | — | 5/5 short-term, 0/3 long-term |  | — |
| DPZ: Domino's Pizza, Inc. | −23.6% | −4.4% | −25.7% | +116% | 3/5 short-term, 0/3 long-term |  | -0.05 |
| WEN: The Wendy's Company | −22.3% | −59.5% | −63.0% | −16.5% | 2/5 short-term, 0/3 long-term |  | -0.37 |
| JACK: Jack in the Box Inc. | −30.0% | −80.1% | −86.8% | −85.0% | 1/5 short-term, 0/3 long-term |  | -0.52 |
| PZZA: Papa John's International, Inc. | −63.5% | −67.8% | −82.0% | −70.9% | 0/5 short-term, 0/3 long-term |  | -0.59 |

### How did MCD do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where MCD ranked among its popular alternatives each year.

- MCD finished ahead of the S&P 500 in 13 of its 29 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, WING came out ahead of MCD most often, in seven of the ten years both traded.
- Ranked against its popular alternatives each year, MCD finished in the top quarter in nine of 29 years and in the bottom quarter in eight. In 2025, it ranked 9 of 26.

| Year | MCD | SPY |
| --- | --- | --- |
| 2025 | +7.9% | +17.7% |
| 2024 | +0.1% | +24.9% |
| 2023 | +15.1% | +26.2% |
| 2022 | +0.5% | −18.2% |
| 2021 | +27.8% | +28.7% |
| 2020 | +11.3% | +18.3% |
| 2019 | +14.0% | +31.2% |
| 2018 | +5.8% | −4.6% |
| 2017 | +44.0% | +21.7% |
| 2016 | +6.2% | +12.0% |

## Risk and diversification

How MCD has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were MCD's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all three of MCD's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: MCD fell 31.0% from February to October 2026, while the S&P 500 rose 14.2%.
- The slowest recovery came after MCD fell 73.7% from November 1999 to March 2003; it did not regain that peak until December 2006, four years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −73.7% | November 12, 1999 | March 12, 2003 | December 8, 2006 | −39.5% | dot-com bust |
| −40.3% | August 17, 1987 | October 19, 1987 | May 22, 1989 | — |  |
| −36.9% | September 6, 2019 | March 23, 2020 | September 2, 2020 | −24.0% | Covid crash |
| −33.6% | July 17, 1990 | October 31, 1990 | December 23, 1991 | — |  |
| −31.0% | February 27, 2026 | October 7, 2026 | not yet | +14.2% |  |

### How did MCD do in stock market crashes?

This section measures how far MCD, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- None of its popular alternatives fell less than MCD in most of the crashes they both traded through.
- MCD fell less than the S&P 500 in six of the ten crashes it has traded through. The clearest case was the 2008 financial crisis, when MCD fell 21.4% and the S&P 500 fell 55.2%.

| Crash | Dates | MCD fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −57.1% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −21.4% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −7.3% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −9.8% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.1% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −9.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −36.1% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −17.2% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.4% | −3.4% |

### How closely does MCD move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, MCD captured 58% of the S&P 500's gains in rising months and 52% of its losses in falling months, with a beta of 0.52. That is a defensive profile: it gave up some of the market's upside in exchange for smaller losses.
- Only KO and TXRH had a higher capture ratio (upside capture divided by downside capture) than MCD's 1.11, out of 20 popular alternatives with the same record.
- KO took just 44% of the S&P 500's losses, against 52% for MCD, while still keeping 57% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| MCD: McDonald's Corporation (this page) | 58.0% | 52.0% | 0.52 |
| DRI: Darden Restaurants, Inc. | 96.0% | 92.0% | 1.06 |
| USFD: US Foods Holding Corp. | 100% | 103% | 1.29 |
| [KO](https://easycompare.io/research/ko): The Coca-Cola Company | 57.0% | 44.0% | 0.47 |
| [YUM](https://easycompare.io/research/yum): Yum! Brands, Inc. | 67.0% | 70.0% | 0.82 |
| CAKE: The Cheesecake Factory Incorporated | 85.0% | 104% | 1.35 |
| TXRH: Texas Roadhouse, Inc. | 93.0% | 78.0% | 0.94 |
| EAT: Brinker International, Inc. | 139% | 168% | 1.98 |
| QSR: Restaurant Brands International Inc. | 67.0% | 78.0% | 0.83 |
| [SYY](https://easycompare.io/research/syy): Sysco Corporation | 76.0% | 100% | 1.02 |
| [SBUX](https://easycompare.io/research/sbux): Starbucks Corporation | 81.0% | 107% | 0.94 |
| SHAK: Shake Shack Inc. | 85.0% | 131% | 1.68 |
| WING: Wingstop Inc. | 123% | 137% | 1.57 |
| [CMG](https://easycompare.io/research/cmg): Chipotle Mexican Grill, Inc. | 103% | 111% | 1.16 |
| [PEP](https://easycompare.io/research/pep): PepsiCo, Inc. | 48.0% | 65.0% | 0.48 |
| BLMN: Bloomin' Brands, Inc. | 70.0% | 173% | 1.70 |
| DIN: Dine Brands Global, Inc. | 76.0% | 189% | 1.52 |
| DPZ: Domino's Pizza, Inc. | 77.0% | 98.0% | 0.75 |
| WEN: The Wendy's Company | 32.0% | 78.0% | 0.68 |
| JACK: Jack in the Box Inc. | 49.0% | 214% | 1.61 |
| PZZA: Papa John's International, Inc. | 32.0% | 141% | 1.08 |

### What diversifies MCD?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in MCD into DXJ would have cut the portfolio's volatility by 15% over the past 5 years and raised its annual return (+1.5% for MCD alone, +6.5% for the mix).
- MCK made money in four of the five calendar years in which MCD lost money.
- Among large ETFs, DXJ, MLPX and SMH have moved largely independently of MCD over the past 5 years, with correlations of 0.43 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with MCD | 5Y return | Volatility | Sharpe | Rose in MCD's 5 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.28 | +225% | 19.1% | 1.34 | 2 of 5 |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.43 | +135% | 19.7% | 0.97 | 1 of 5 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.00 | +323% | 36.9% | 0.97 | 2 of 5 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.49 | +85.0% | 13.8% | 0.96 | 2 of 5 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.28 | +126% | 18.9% | 0.96 | 1 of 5 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.20 | +136% | 20.8% | 0.93 | 0 of 5 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.31 | +177% | 25.5% | 0.93 | 2 of 5 |
| DFIV: Dimensional - International Value ETF | 0.49 | +99.4% | 16.4% | 0.93 | 0 of 5 |

## Common questions

### What was MCD's worst drawdown?

MCD's deepest decline since it began trading in 1986 was 73.7%, from November 1999 to March 2003. It took about four years from the low to climb back to its old high.

### What were MCD's best and worst years?

Over 29 full calendar years, MCD's best year was 1998, when it returned 61.7%. Its worst was 2002, with a return of -38.4%.

### Is there a better investment than MCD?

Among MCD's popular alternatives, KO earned more than MCD with less volatility over the past 5 years: 14.7% a year at 16.8% volatility, against 2.9% a year at 17.9%. Looking beyond its popular alternatives, MNST (food & beverages) earned more for the risk it took than MCD over the past 5 years, and its worst fall in 10 years was 30.4%, against 36.9% for MCD.

### Is MCD more volatile than the S&P 500?

Yes. MCD's volatility over the past 5 years was 17.9%, 1.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, MCD's return lands within 17.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is MCD's Sharpe ratio?

MCD's Sharpe ratio over the past 5 years was 0.25, against 0.79 for the S&P 500, so MCD earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is MCD with the S&P 500?

Over the past 5 years, MCD's monthly returns had a correlation of 0.38 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against MCD instead: the lower it is, the more that option would diversify a MCD holding.

### What are the best alternatives to MCD?

Of the 25 popular alternatives we compared, nine outperformed MCD in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: DRI, USFD and KO.

### Did MCD outperform the S&P 500?

MCD finished ahead of the S&P 500 (SPY) in 13 of 29 full calendar years. In 2025, it returned +7.9%, against +17.7% for the index.

### How did MCD do in stock market crashes?

MCD fell less than the S&P 500 (SPY) in six of the ten major crashes it has traded through, and further in three. The clearest case was the 2008 financial crisis, when MCD fell 21.4% and the S&P 500 fell 55.2%.

### What diversifies MCD?

These had a low correlation with MCD over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.28), MLPX (correlation 0.43) and SMH (correlation -0.00); among large stocks, CAH (correlation 0.41), CLS (correlation -0.11) and FIX (correlation 0.26). A correlation near zero means the two have moved largely independently.

## More research

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## Explore further

- Full page with charts: https://easycompare.io/research/mcd
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against MCD live: https://betterthanspy.com/?b=MCD&utm_source=easycompare&utm_medium=research