Gap Inc vs McDonald's Corp — how do they compare? Gap Inc trades at $20.7 (market cap $7.30B), while McDonald's Corp trades at $269.73 (market cap $188.25B). The key difference: McDonald's Corp is far larger — about 25.8× Gap Inc's market cap, and Gap Inc pays the higher dividend (3.45%). Which is the better fit depends on your goals.
| GAP | MCD | |
|---|---|---|
Market Cap | $7.30B | $188.25B |
Sector | Consumer Cyclical | Consumer Cyclical |
52-Week High | $29.13 | $341.06 |
52-Week Low | $18.35 | $264.54 |
Enterprise Value | $10.38B | $241.96B |
Dividend Yield | 3.45% | 2.81% |
Volume | — | 2,230,036 |
Signals from Pluang's Aura AI — not financial advice
Gap Inc. (GAP) trades at $20.13, up 1.67% today, with a bullish technical signal but mixed moving averages. The company shows strong profitability with a 6.25% net income margin and 27.58% ROE, supported by positive earnings beats in recent quarters. Revenue has stabilized around $15B, and cash flow from operations remains robust at $1.49B for 2025. Recent news highlights Gap's digital transformation and Athleta brand turnaround efforts, though legal investigations present headwinds.
The stock appears undervalued with a P/E of 8.05 and consensus price target of $27.00, implying 34% upside. Key opportunities include earnings growth and margin expansion, but risks involve competitive pressures and ongoing legal probes. Analyst sentiment is mixed with 39.58% buy ratings, suggesting cautious optimism for value-oriented investors.
McDonald's (MCD) trades at $268.94, down 1.35% on the day, with a bearish technical signal driven by moving averages. The stock shows strong fundamentals, including a 31.62% net income margin and consistent revenue growth, reaching $26.89B in 2025. Recent news highlights the company's 'McDonald's NEXT' strategy focusing on automation and menu innovation to counter competition and inflation pressures.
The outlook remains positive with a consensus price target of $326.36, implying 21% upside, supported by 59.68% analyst buy ratings. Key risks include inflationary cost pressures on franchisee margins and high long-term debt of $38.42B. Earnings momentum is mixed, with a Q2 2026 estimate of $3.33 EPS to watch.
Trailing returns across standard periods
Latest headlines on both assets
Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates nearly 3,000 stores in North America, Europe, and Asia and franchises about 600 stores in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
Read more on GAP →McDonald's Corporation franchises and operates fast-food restaurants in the global restaurant industry. The Company's restaurants serves a variety of value-priced menu products in countries around the world.
Read more on MCD →