El Pollo Loco Holdings Inc (LOCO)vsMcDonald’s Corporation (MCD)
LOCO
El Pollo Loco Holdings Inc
$15.18
+0.80%
CONSUMER CYCLICAL · Cap: $456.83M
MCD
McDonald’s Corporation
$252.53
-0.21%
CONSUMER CYCLICAL · Cap: $178.70B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 5432% more annual revenue ($27.70B vs $500.79M). MCD leads profitability with a 31.7% profit margin vs 7.0%. LOCO appears more attractively valued with a PEG of 1.16. LOCO earns a higher WallStSmart Score of 65/100 (C+).
LOCO
Buy65
out of 100
Grade: C+
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.3%
Fair Value
$13.43
Current Price
$15.18
$1.75 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
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Attractively priced relative to earnings
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
3.0% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
7.0% margin — thin
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 : LOCO
The strongest argument for LOCO centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.16 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 : LOCO
The primary concerns for LOCO are Revenue Growth, Altman Z-Score, Market Cap.
Bear Case : MCD
The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.
Key Dynamics to Monitor
LOCO carries more volatility with a beta of 0.69 — 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
LOCO scores higher overall (65/100 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.
El Pollo Loco Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, 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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