WallStSmart

KKR & Co LP (KKR)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 8% more annual revenue ($27.45B vs $25.38B). MCD leads profitability with a 31.6% profit margin vs 11.7%. KKR appears more attractively valued with a PEG of 0.54. MCD earns a higher WallStSmart Score of 55/100 (C-).

KKR

Hold

48

out of 100

Grade: D+

Growth: 4.7Profit: 5.5Value: 5.7Quality: 5.0

MCD

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 3.3Quality: 5.3
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for KKR.

MCDSignificantly Overvalued (-74.8%)

Margin of Safety

-74.8%

Fair Value

$157.74

Current Price

$275.75

$118.01 premium

UndervaluedFair: $157.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KKR3 strengths · Avg: 8.3/10
Market CapQuality
$92.71B9/10

Large-cap with strong market position

PEG RatioValuation
0.548/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.72B8/10

Generating 1.7B in free cash flow

MCD5 strengths · Avg: 9.4/10
Profit MarginProfitability
31.6%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Debt/EquityHealth
-38.1210/10

Conservative balance sheet, low leverage

Market CapQuality
$195.92B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.73B8/10

Generating 1.7B in free cash flow

Areas to Watch

KKR3 concerns · Avg: 2.0/10
P/E RatioValuation
42.9x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-5.4%2/10

Revenue declined 5.4%

EPS GrowthGrowth
-2.2%2/10

Earnings declined 2.2%

MCD3 concerns · Avg: 2.7/10
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
2.552/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : KKR

The strongest argument for KKR centers on Market Cap, PEG Ratio, Free Cash Flow. PEG of 0.54 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 31.6% and operating margin at 45.3%.

Bear Case : KKR

The primary concerns for KKR are P/E Ratio, Revenue Growth, EPS Growth. A P/E of 42.9x leaves little room for execution misses.

Bear Case : MCD

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

Key Dynamics to Monitor

KKR profiles as a declining stock while MCD is a mature play — different risk/reward profiles.

KKR carries more volatility with a beta of 1.85 — expect wider price swings.

MCD is growing revenue faster at 9.4% — sustainability is the question.

MCD generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

MCD scores higher overall (55/100 vs 48/100), backed by strong 31.6% margins. 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.

KKR & Co LP

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

KKR & Co. LP, established in 1976, is a premier global investment firm renowned for its diversified investment strategies spanning private equity, credit, and real assets. Leveraging its deep industry insights and vast global network, KKR effectively identifies and capitalizes on complex market opportunities, driving sustainable long-term value for its portfolio companies. The firm is also a leader in sustainable investing, rigorously incorporating environmental, social, and governance (ESG) criteria into its investment processes to ensure robust performance while fostering responsible growth in the financial markets. KKR’s commitment to innovative investment solutions and operational excellence positions it as a key player in the evolving landscape of global finance.

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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