McDonald’s Corporation (MCD)vsAT&T Inc (TBB)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
TBB
AT&T Inc
$21.58
-0.05%
· Cap: $132.50B
Smart Verdict
WallStSmart Research — data-driven comparison
MCD leads profitability with a 31.9% profit margin vs 0.0%. TBB trades at a lower P/E of 4.2x. MCD earns a higher WallStSmart Score of 53/100 (C-).
MCD
Buy53
out of 100
Grade: C-
TBB
Avoid25
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Intrinsic value data unavailable for TBB.
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
Attractively priced relative to earnings
Large-cap with strong market position
Generating 4.5B in free cash flow
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
0.0% revenue growth
0.0% earnings growth
0.0% margin — thin
Operating margin of 0.0%
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 : TBB
The strongest argument for TBB centers on P/E Ratio, Market Cap, Free Cash Flow.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : TBB
The primary concerns for TBB are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 1.57 is elevated, increasing financial risk.
Key Dynamics to Monitor
MCD profiles as a mature stock while TBB is a value play — different risk/reward profiles.
MCD is growing revenue faster at 9.7% — sustainability is the question.
TBB generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCD scores higher overall (53/100 vs 25/100), backed by strong 31.9% margins. Both earn "Buy" and "Avoid" 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 →AT&T Inc
· · USA
AT&T Inc. provides digital entertainment communications and services. The company is headquartered in Dallas, Texas.
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