Stock Comparison
KO vs MCD: Which Is the Better Pick in 2026?
A head-to-head comparison of The Coca-Cola Company and McDonald's Corporation covering yield, cost, risk, and income potential.
Data updated August 24, 2026
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
KO has outpaced MCD over the trailing twelve months, posting a 32.50% total return against -11.96%. The picture flips over 10 years, though — MCD has compounded at 11.49% a year, ahead of KO at 11.03%. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Jul 1966 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| KO | 33.56% | 32.50% | 18.08% | 13.27% | 11.03% | 12.42% | 16.5% | 0.74 | 1.12 | -15.5% |
| MCD | -10.16% | -11.96% | 1.04% | 4.83% | 11.49% | 20.22% | 18.1% | -0.19 | -0.26 | -22.5% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 21, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jul 1966” measures every fund from July 5, 1966 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
| Metric |  KO |  MCD |
|---|---|---|
| Full name | The Coca-Cola Company | McDonald's Corporation |
| Issuer | — | — |
| Last Close | $91.10 as of August 24, 2026 | $270.95 as of August 24, 2026 |
| Distribution yield | 2.30% | 2.76% |
| Distribution Safety Score™ | 99 | 100 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Manufactures, distributes, and markets nonalcoholic beverage concentrates, syrups, and finished beverages worldwide. | Operates and franchises McDonald's restaurants serving a locally relevant menu of food and beverages in more than 100 countries worldwide. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.342 | 0.419 |
| Last dividend | $0.5300 | $1.8600 |
| Ex-dividend date | 09/15/2026 | 09/01/2026 |
Bottom lineKO and MCD are nearly interchangeable — both offer very similar beverages exposure with very similar cost and risk. Neither charges a fund expense ratio, so the decision rests on business fundamentals, payout history, and valuation.
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Quick verdict
KO (The Coca-Cola Company) and MCD (McDonald's Corporation) are both quarterly-pay dividend-paying stocks, but they take different approaches.
MCD offers the higher yield at 2.76% vs 2.30% for KO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, KO would generate roughly $19.17/month, while MCD would produce $23.00/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
KO is a stock built around beverages exposure, while MCD is a stock built around quick-service restaurant exposure. Beta is 0.342 for KO and 0.419 for MCD, making KO the less volatile of the two by this measure.
Security details
KO (The Coca-Cola Company) is a stock. MCD (McDonald's Corporation) is a stock.
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Frequently asked questions
What is the current distribution yield for KO and MCD?
KO currently distributes 2.30% and MCD 2.76%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is KO or MCD better for dividend income?
It depends on your goals. MCD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between KO and MCD?
KO (The Coca-Cola Company) is a stock built around beverages exposure, while MCD (McDonald's Corporation) is a stock built around quick-service restaurant exposure. They are issued by — and — respectively.
Can I hold both KO and MCD?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is KO or MCD safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: MCD scores 100, KO scores 99. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in KO vs MCD generate?
At current rates, $10,000 in KO would generate roughly $19.17 per month ($230.00 annually). The same in MCD would produce about $23.00 per month ($276.00 annually).
Which has performed better historically, KO or MCD?
KO has outpaced MCD over the trailing twelve months, posting a 32.50% total return against -11.96%. The picture flips over 10 years, though — MCD has compounded at 11.49% a year, ahead of KO at 11.03%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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KO vs MCD — at a glance
Generated August 15, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
Coca-Cola and McDonald's are both mature, multinational dividend stocks with deep operations in consumer staples—one in nonalcoholic beverages, the other in quick-service restaurants. Both pay quarterly dividends and trade with modest leverage to broader market moves, but they differ in business model (manufacturing and distribution versus asset-light franchising), yield (2.40% versus 2.70%), and underlying volatility.
How they differ
McDonald's edges out Coca-Cola on yield by 30 basis points, reflecting its higher distribution rate of 2.70% versus 2.40%. The bigger structural difference lies in their business models: Coca-Cola manufactures and distributes beverage concentrates and finished products globally, while McDonald's operates primarily through franchising—a capital-lighter model that generates steady royalty and rent streams rather than product inventory risk. McDonald's also carries slightly higher market sensitivity, with a beta of 0.419 compared to Coca-Cola's 0.342, meaning it tends to move more with broad equity swings despite both trading well below the market average of 1.0. McDonald's stock trades at $272.83 versus Coca-Cola at $87.71, though price alone doesn't determine volatility or risk profile.
Who each is best for
KO: Fits investors seeking a defensive equity position with lower volatility and minimal exposure to market swings—its 0.342 beta reflects that defensive tilt—who are comfortable with a modest 2.40% yield in exchange for capital stability and a company with century-plus operational history.
MCD: Fits income-focused investors who prioritize yield slightly above Coca-Cola's, alongside a franchise-based revenue model that tends to weather economic slowdowns through contractual rent and royalty obligations rather than product demand fluctuations alone.
Key risks to know
- Commodity and input cost sensitivity. Coca-Cola's manufacturing model exposes it to swings in sugar, fruit juice, and other commodity input costs; sharp inflation in these materials could pressure margins independent of pricing power.
- Franchise concentration. McDonald's depends heavily on franchisee financial health and compliance; a severe recession affecting small-business balance sheets could disrupt royalty and rent collection, even if brand strength endures.
- Currency headwinds. Both companies derive significant revenue from international operations; a strengthening US dollar reduces reported earnings when foreign revenue is translated back to US dollars, a structural risk neither can fully hedge.
- Category-level demand shifts. Coca-Cola faces ongoing pressure from consumer preference shifts away from full-sugar beverages toward zero-sugar and functional drinks; McDonald's faces similar exposure to changing dining habits and health consciousness, though less acutely given its pricing power.
Bottom line
If you prioritize capital stability and lower portfolio volatility, Coca-Cola's 0.342 beta and defensive characteristics stand out; if you value higher current yield and prefer a franchised business model, McDonald's 2.70% distribution is the stronger fit. Both carry currency and consumer-trend risks that extend beyond their immediate sector; past performance in dividend growth does not guarantee future distribution stability.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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