McDonald’s Corporation (MCD)vsRave Restaurant Group Inc (RAVE)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
RAVE
Rave Restaurant Group Inc
$2.49
+3.32%
CONSUMER CYCLICAL · Cap: $34.96M
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 217153% more annual revenue ($26.88B vs $12.38M). MCD leads profitability with a 31.9% profit margin vs 23.0%. MCD appears more attractively valued with a PEG of 2.74. RAVE earns a higher WallStSmart Score of 55/100 (C-).
MCD
Buy53
out of 100
Grade: C-
RAVE
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Margin of Safety
-143.4%
Fair Value
$1.36
Current Price
$2.49
$1.13 premium
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
Keeps 23 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 24.4%
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
0.0% earnings growth
Smaller company, higher risk/reward
Expensive relative to growth rate
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 : RAVE
The strongest argument for RAVE centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 23.0% and operating margin at 24.4%.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : RAVE
The primary concerns for RAVE are EPS Growth, Market Cap, PEG Ratio.
Key Dynamics to Monitor
MCD carries more volatility with a beta of 0.50 — 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.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RAVE scores higher overall (55/100 vs 53/100), backed by strong 23.0% margins. 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 →Rave Restaurant Group Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Rave Restaurant Group, Inc. operates and franchises pizza buffet, delivery / take-out (delco), and express restaurants under the Pizza Inn trademark in the United States and internationally. The company is headquartered in The Colony, Texas.
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