McDonald’s Corporation (MCD)vsShake Shack Inc (SHAK)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
SHAK
Shake Shack Inc
$89.50
-0.60%
CONSUMER CYCLICAL · Cap: $3.84B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 1760% more annual revenue ($26.88B vs $1.45B). MCD leads profitability with a 31.9% profit margin vs 3.2%. SHAK appears more attractively valued with a PEG of 2.55. MCD earns a higher WallStSmart Score of 53/100 (C-).
MCD
Buy53
out of 100
Grade: C-
SHAK
Hold50
out of 100
Grade: D+
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
-90.2%
Fair Value
$51.01
Current Price
$89.50
$38.49 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
Revenue surging 21.9% year-over-year
Earnings expanding 28.7% YoY
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
3.2% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SHAK
The strongest argument for SHAK centers on Revenue Growth, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : SHAK
The primary concerns for SHAK are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 82.6x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
MCD profiles as a mature stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.77 — expect wider price swings.
SHAK is growing revenue faster at 21.9% — 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 50/100), 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.
Visit Website →Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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