McDonald’s Corporation (MCD)vsYum! Brands Inc (YUM)
MCD
McDonald’s Corporation
$284.10
+0.38%
CONSUMER CYCLICAL · Cap: $201.95B
YUM
Yum! Brands Inc
$153.93
-0.30%
CONSUMER CYCLICAL · Cap: $43.78B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 217% more annual revenue ($26.88B vs $8.49B). MCD leads profitability with a 31.9% profit margin vs 20.5%. YUM appears more attractively valued with a PEG of 1.96. YUM earns a higher WallStSmart Score of 65/100 (C+).
MCD
Buy56
out of 100
Grade: C
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.1%
Fair Value
$153.50
Current Price
$284.10
$130.60 premium
Margin of Safety
-77.2%
Fair Value
$89.76
Current Price
$153.93
$64.17 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
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
MCD profiles as a mature stock while YUM is a growth play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.66 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 56/100), backed by strong 20.5% margins and 15.2% revenue growth. 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 →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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