McDonald’s Corporation (MCD)vsShake Shack Inc (SHAK)
MCD
McDonald’s Corporation
$271.52
-1.13%
CONSUMER CYCLICAL · Cap: $187.27B
SHAK
Shake Shack Inc
$63.05
-0.24%
CONSUMER CYCLICAL · Cap: $2.44B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 1741% more annual revenue ($27.45B vs $1.49B). MCD leads profitability with a 31.6% profit margin vs 2.8%. MCD appears more attractively valued with a PEG of 2.53. MCD earns a higher WallStSmart Score of 55/100 (C-).
MCD
Buy55
out of 100
Grade: C-
SHAK
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.3%
Fair Value
$152.31
Current Price
$271.52
$119.21 premium
Margin of Safety
+28.1%
Fair Value
$135.04
Current Price
$63.05
$71.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.7B in free cash flow
Earnings expanding 28.7% YoY
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
ROE of 7.8% — below average capital efficiency
2.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bull Case : SHAK
The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 58.1x leaves little room for execution misses. Debt-to-equity of 1.78 is elevated, increasing financial risk.
Key Dynamics to Monitor
MCD profiles as a mature stock while SHAK is a value play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.63 — expect wider price swings.
SHAK is growing revenue faster at 14.3% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (55/100 vs 51/100), backed by strong 31.6% margins. SHAK offers better value entry with a 28.1% margin of safety. 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 →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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