WallStSmart

Chipotle Mexican Grill Inc (CMG)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 125% more annual revenue ($26.88B vs $11.93B). MCD leads profitability with a 31.9% profit margin vs 12.9%. CMG appears more attractively valued with a PEG of 1.73. CMG earns a higher WallStSmart Score of 56/100 (C).

CMG

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 2.47

MCD

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 5.3
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMGSignificantly Overvalued (-147.3%)

Margin of Safety

-147.3%

Fair Value

$15.05

Current Price

$33.37

$18.32 premium

UndervaluedFair: $15.05Overvalued
MCDSignificantly Overvalued (-30.1%)

Margin of Safety

-30.1%

Fair Value

$237.45

Current Price

$308.85

$71.40 premium

UndervaluedFair: $237.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
47.4%10/10

Every $100 of equity generates 47 in profit

MCD5 strengths · Avg: 9.6/10
Market CapQuality
$220.40B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Debt/EquityHealth
-38.1210/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

Areas to Watch

CMG4 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
29.3x4/10

Moderate valuation

Price/BookValuation
15.4x4/10

Trading at 15.4x book value

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

MCD4 concerns · Avg: 3.0/10
P/E RatioValuation
25.9x4/10

Moderate valuation

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

PEG RatioValuation
2.742/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CMG

The strongest argument for CMG centers on Return on Equity.

Bull Case : MCD

The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.

Bear Case : CMG

The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 3.48 is elevated, increasing financial risk.

Bear Case : MCD

The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

CMG profiles as a value stock while MCD is a mature play — different risk/reward profiles.

CMG carries more volatility with a beta of 1.02 — expect wider price swings.

MCD is growing revenue faster at 9.7% — sustainability is the question.

MCD generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

CMG scores higher overall (56/100 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.

Chipotle Mexican Grill Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.

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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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