McDonald’s Corporation (MCD)vsYum! Brands Inc (YUM)
MCD
McDonald’s Corporation
$268.34
+1.17%
CONSUMER CYCLICAL · Cap: $187.27B
YUM
Yum! Brands Inc
$147.68
-0.75%
CONSUMER CYCLICAL · Cap: $41.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 215% more annual revenue ($27.45B vs $8.72B). MCD leads profitability with a 31.6% profit margin vs 25.4%. YUM appears more attractively valued with a PEG of 1.97. YUM earns a higher WallStSmart Score of 65/100 (C+).
MCD
Buy55
out of 100
Grade: C-
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.3%
Fair Value
$152.31
Current Price
$268.34
$116.03 premium
Margin of Safety
-79.7%
Fair Value
$88.51
Current Price
$147.68
$59.17 premium
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
Strong operational efficiency at 32.2%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
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
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.2%. Revenue growth of 12.3% 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, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
YUM carries more volatility with a beta of 0.56 — expect wider price swings.
YUM is growing revenue faster at 12.3% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
YUM scores higher overall (65/100 vs 55/100), backed by strong 25.4% margins and 12.3% 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.
Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?