WallStSmart

McDonald’s Corporation (MCD)vsPapa John's International Inc (PZZA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 1209% more annual revenue ($26.88B vs $2.05B). MCD leads profitability with a 31.9% profit margin vs 1.5%. PZZA appears more attractively valued with a PEG of 2.12. 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

PZZA

Hold

35

out of 100

Grade: F

Growth: 2.0Profit: 5.0Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.96
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
PZZASignificantly Overvalued (-455.7%)

Margin of Safety

-455.7%

Fair Value

$6.12

Current Price

$33.12

$27.00 premium

UndervaluedFair: $6.12Overvalued

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

PZZA0 strengths · Avg: 0/10

No standout strengths identified

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

PZZA4 concerns · Avg: 3.5/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

P/E RatioValuation
36.8x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.09B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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 : PZZA

PZZA has a balanced fundamental profile.

Bear Case : MCD

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

Bear Case : PZZA

The primary concerns for PZZA are PEG Ratio, P/E Ratio, Market Cap. Thin 1.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

PZZA carries more volatility with a beta of 1.24 — 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 35/100), 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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Papa John's International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Papa John's International, Inc. operates and franchises pizza delivery and take-out restaurants under the Papa John's trademark in the United States and internationally. The company is headquartered in Louisville, Kentucky.

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