McDonald’s Corporation (MCD)vsPapa John's International Inc (PZZA)
MCD
McDonald’s Corporation
$264.54
-3.41%
CONSUMER CYCLICAL · Cap: $203.29B
PZZA
Papa John's International Inc
$34.35
-1.12%
CONSUMER CYCLICAL · Cap: $1.19B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 1263% more annual revenue ($27.45B vs $2.01B). MCD leads profitability with a 31.6% profit margin vs 1.4%. MCD appears more attractively valued with a PEG of 2.61. MCD earns a higher WallStSmart Score of 56/100 (C).
MCD
Buy56
out of 100
Grade: C
PZZA
Hold35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.4%
Fair Value
$151.11
Current Price
$264.54
$113.43 premium
Margin of Safety
+37.5%
Fair Value
$54.44
Current Price
$34.35
$20.09 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
1.4% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bull Case : PZZA
The strongest argument for PZZA centers on Debt/Equity.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : PZZA
The primary concerns for PZZA are Market Cap, Return on Equity, Profit Margin. A P/E of 43.4x leaves little room for execution misses. Thin 1.4% 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 1.13 — 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 (56/100 vs 35/100), backed by strong 31.6% margins. PZZA offers better value entry with a 37.5% 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.
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.
Visit Website →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.
Visit Website →Compare with Other RESTAURANTS Stocks
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