McDonald’s Corporation (MCD)vsRestaurant Brands International Inc (QSR)
MCD
McDonald’s Corporation
$284.10
+0.38%
CONSUMER CYCLICAL · Cap: $201.95B
QSR
Restaurant Brands International Inc
$81.69
+2.05%
CONSUMER CYCLICAL · Cap: $36.54B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 185% more annual revenue ($26.88B vs $9.43B). MCD leads profitability with a 31.9% profit margin vs 8.2%. QSR appears more attractively valued with a PEG of 0.94. QSR earns a higher WallStSmart Score of 59/100 (C).
MCD
Buy56
out of 100
Grade: C
QSR
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.1%
Fair Value
$153.50
Current Price
$284.10
$130.60 premium
Margin of Safety
+32.6%
Fair Value
$104.92
Current Price
$81.69
$23.23 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 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Strong operational efficiency at 26.4%
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 57.4%
Distress zone — elevated risk
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 31.9% and operating margin at 45.1%.
Bull Case : QSR
The strongest argument for QSR centers on Return on Equity, PEG Ratio, Operating Margin. PEG of 0.94 suggests the stock is reasonably priced for its growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : QSR
The primary concerns for QSR are P/E Ratio, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
MCD profiles as a mature stock while QSR is a value play — different risk/reward profiles.
QSR carries more volatility with a beta of 0.55 — 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
QSR scores higher overall (59/100 vs 56/100). 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.
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 →Restaurant Brands International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.
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