WallStSmart

McDonald’s Corporation (MCD)vsThe Wendy’s Co (WEN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 1135% more annual revenue ($26.88B vs $2.18B). MCD leads profitability with a 31.9% profit margin vs 7.6%. WEN appears more attractively valued with a PEG of 1.20. MCD earns a higher WallStSmart Score of 53/100 (C-).

MCD

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 5.3
Piotroski: 3/9

WEN

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCDSignificantly Overvalued (-31.1%)

Margin of Safety

-31.1%

Fair Value

$237.84

Current Price

$311.70

$73.86 premium

UndervaluedFair: $237.84Overvalued
WENSignificantly Overvalued (-36.3%)

Margin of Safety

-36.3%

Fair Value

$5.78

Current Price

$7.14

$1.36 premium

UndervaluedFair: $5.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCD5 strengths · Avg: 9.6/10
Market CapQuality
$219.68B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Debt/EquityHealth
-38.1210/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

WEN2 strengths · Avg: 10.0/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
87.6%10/10

Every $100 of equity generates 88 in profit

Areas to Watch

MCD4 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.742/10

Expensive relative to growth rate

WEN4 concerns · Avg: 3.0/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Market CapQuality
$1.36B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Revenue GrowthGrowth
-5.5%2/10

Revenue declined 5.5%

Comparative Analysis Report

WallStSmart Research

Bull 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 : WEN

The strongest argument for WEN centers on P/E Ratio, Return on Equity. PEG of 1.20 suggests the stock is reasonably priced for its growth.

Bear Case : MCD

The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.

Bear Case : WEN

The primary concerns for WEN are Price/Book, Market Cap, Profit Margin.

Key Dynamics to Monitor

MCD profiles as a mature stock while WEN is a value play — different risk/reward profiles.

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.

Bottom Line

MCD scores higher overall (53/100 vs 52/100), backed by strong 31.9% 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 →

The Wendy’s Co

CONSUMER CYCLICAL · RESTAURANTS · USA

The Wendy's Company, is a quick service restaurant business. The company is headquartered in Dublin, Ohio.

Want to dig deeper into these stocks?