Brinker International Inc (EAT)vsMcDonald’s Corporation (MCD)
EAT
Brinker International Inc
$200.49
+1.82%
CONSUMER CYCLICAL · Cap: $9.29B
MCD
McDonald’s Corporation
$248.24
-0.14%
CONSUMER CYCLICAL · Cap: $178.70B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 377% more annual revenue ($27.70B vs $5.81B). MCD leads profitability with a 31.7% profit margin vs 8.4%. EAT appears more attractively valued with a PEG of 1.63. EAT earns a higher WallStSmart Score of 61/100 (C+).
EAT
Buy61
out of 100
Grade: C+
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for EAT.
Margin of Safety
-59.5%
Fair Value
$155.74
Current Price
$248.24
$92.50 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 114 in profit
Safe zone — low bankruptcy risk
Earnings expanding 29.4% YoY
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 2.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 19.1x book value
Elevated debt levels
Expensive relative to growth rate
3.7% revenue growth
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EAT
The strongest argument for EAT centers on Return on Equity, Altman Z-Score, EPS Growth.
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 : EAT
The primary concerns for EAT are PEG Ratio, Price/Book, Debt/Equity. Debt-to-equity of 3.96 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.
Key Dynamics to Monitor
EAT carries more volatility with a beta of 1.26 — expect wider price swings.
EAT is growing revenue faster at 5.1% — 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
EAT scores higher overall (61/100 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.
Brinker International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.
Visit Website →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.
Visit Website →Compare with Other RESTAURANTS Stocks
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