WallStSmart

McDonald’s Corporation (MCD)vsPortillo's Inc (PTLO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 3572% more annual revenue ($26.88B vs $732.07M). MCD leads profitability with a 31.9% profit margin vs 2.6%. PTLO trades at a lower P/E of 20.0x. MCD earns a higher WallStSmart Score of 53/100 (C-).

MCD

Buy

53

out of 100

Grade: C-

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

PTLO

Hold

43

out of 100

Grade: D

Growth: 4.0Profit: 4.5Value: 5.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCDSignificantly Overvalued (-31.1%)

Margin of Safety

-31.1%

Fair Value

$237.84

Current Price

$311.70

$73.86 premium

UndervaluedFair: $237.84Overvalued
PTLOSignificantly Overvalued (-215.8%)

Margin of Safety

-215.8%

Fair Value

$1.84

Current Price

$5.32

$3.48 premium

UndervaluedFair: $1.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCD5 strengths · Avg: 9.6/10
Market CapQuality
$219.68B10/10

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

PTLO1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Areas to Watch

MCD4 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

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

PTLO4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.6%4/10

0.6% revenue growth

Market CapQuality
$389.15M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.3%3/10

ROE of 4.3% — below average capital efficiency

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PTLO

The strongest argument for PTLO centers on Price/Book.

Bear Case : MCD

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

Bear Case : PTLO

The primary concerns for PTLO are Revenue Growth, Market Cap, Return on Equity. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PTLO carries more volatility with a beta of 1.76 — 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

MCD scores higher overall (53/100 vs 43/100), backed by strong 31.9% 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.

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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Portillo's Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Portillo's Inc., participates in the ownership and operation of informal and quick service restaurants in the United States. The company is headquartered in Oak Brook, Illinois.

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