WallStSmart

Biglari Holdings Inc (BH)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 6801% more annual revenue ($27.45B vs $397.71M). MCD leads profitability with a 31.6% profit margin vs -4.7%. MCD earns a higher WallStSmart Score of 55/100 (C-).

BH

Avoid

29

out of 100

Grade: F

Growth: 3.3Profit: 3.0Value: 5.0Quality: 6.0
Piotroski: 2/9Altman Z: 1.88

MCD

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BH.

MCDSignificantly Overvalued (-81.2%)

Margin of Safety

-81.2%

Fair Value

$151.51

Current Price

$274.60

$123.09 premium

UndervaluedFair: $151.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BH1 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

MCD5 strengths · Avg: 9.4/10
Profit MarginProfitability
31.6%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

Debt/EquityHealth
-42.6810/10

Conservative balance sheet, low leverage

Market CapQuality
$196.45B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.73B8/10

Generating 1.7B in free cash flow

Areas to Watch

BH4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Altman Z-ScoreHealth
1.884/10

Grey zone — moderate risk

Market CapQuality
$1.24B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

MCD3 concerns · Avg: 2.7/10
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
2.562/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BH

The strongest argument for BH centers on Price/Book.

Bull 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%.

Bear Case : BH

The primary concerns for BH are Revenue Growth, Altman Z-Score, Market Cap.

Bear Case : MCD

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

Key Dynamics to Monitor

BH profiles as a turnaround stock while MCD is a mature play — different risk/reward profiles.

BH carries more volatility with a beta of 0.53 — expect wider price swings.

MCD is growing revenue faster at 9.4% — 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 29/100), backed by strong 31.6% 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.

Biglari Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Biglari Holdings Inc., primarily operates and franchises restaurants in the United States. The company is headquartered in San Antonio, Texas.

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.

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