WallStSmart

Chagee Holdings Limited American Depositary Shares (CHA)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 111% more annual revenue ($27.70B vs $13.14B). MCD leads profitability with a 31.7% profit margin vs 10.2%. CHA trades at a lower P/E of 12.2x. CHA earns a higher WallStSmart Score of 60/100 (C+).

CHA

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 6.0Quality: 9.0
Piotroski: 4/9Altman Z: 3.86

MCD

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CHA.

MCDSignificantly Overvalued (-62.5%)

Margin of Safety

-62.5%

Fair Value

$155.44

Current Price

$252.53

$97.09 premium

UndervaluedFair: $155.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHA5 strengths · Avg: 9.0/10
EPS GrowthGrowth
591.0%10/10

Earnings expanding 591.0% YoY

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

MCD5 strengths · Avg: 9.4/10
Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
46.5%10/10

Strong operational efficiency at 46.5%

Debt/EquityHealth
-53.3610/10

Conservative balance sheet, low leverage

Market CapQuality
$178.70B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.98B8/10

Generating 2.0B in free cash flow

Areas to Watch

CHA1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

MCD4 concerns · Avg: 3.5/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CHA

The strongest argument for CHA centers on EPS Growth, Altman Z-Score, Debt/Equity.

Bull Case : MCD

The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.7% and operating margin at 46.5%.

Bear Case : CHA

The primary concerns for CHA are Revenue Growth.

Bear Case : MCD

The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.

Key Dynamics to Monitor

MCD is growing revenue faster at 3.7% — sustainability is the question.

MCD generates stronger free cash flow (2.0B), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CHA scores higher overall (60/100 vs 53/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chagee Holdings Limited American Depositary Shares

CONSUMER CYCLICAL · RESTAURANTS · USA

Chagee Holdings Ltd. is a Shanghai-based company founded in 2017 by Jun Jie Zhang. It specializes in selling freshly made tea drinks—such as tea lattes, teapuccinos, iced teas, and other creative beverages—along with related products like raw materials, packaging, and teahouse equipment.

McDonald’s Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.

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