Jack in the Box Inc. (JACK)vsMcDonald’s Corporation (MCD)
JACK
Jack in the Box Inc.
$14.78
+0.82%
CONSUMER CYCLICAL · Cap: $304.18M
MCD
McDonald’s Corporation
$252.53
-0.21%
CONSUMER CYCLICAL · Cap: $178.70B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 1841% more annual revenue ($27.70B vs $1.43B). MCD leads profitability with a 31.7% profit margin vs 2.4%. JACK appears more attractively valued with a PEG of 0.37. MCD earns a higher WallStSmart Score of 53/100 (C-).
JACK
Hold43
out of 100
Grade: D
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.0%
Fair Value
$38.23
Current Price
$14.78
$23.45 discount
Margin of Safety
-62.5%
Fair Value
$155.44
Current Price
$252.53
$97.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Conservative balance sheet, low leverage
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
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
2.4% margin — thin
Revenue declined 1.8%
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 : JACK
The strongest argument for JACK centers on PEG Ratio, Debt/Equity. PEG of 0.37 suggests the stock is reasonably priced for its 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 : JACK
The primary concerns for JACK are Market Cap, Return on Equity, Profit Margin. Thin 2.4% margins leave little buffer for downturns.
Bear Case : MCD
The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.
Key Dynamics to Monitor
JACK carries more volatility with a beta of 1.40 — expect wider price swings.
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
MCD scores higher overall (53/100 vs 43/100), backed by strong 31.7% margins. JACK offers better value entry with a 46.0% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Jack in the Box Inc.
CONSUMER CYCLICAL · RESTAURANTS · USA
Jack in the Box Inc. operates and franchises Jack in the Box quick service restaurants. The company is headquartered in San Diego, California.
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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