WallStSmart

Chagee Holdings Limited American Depositary Shares (CHA)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 98% more annual revenue ($26.88B vs $13.60B). MCD leads profitability with a 31.9% profit margin vs 15.1%. CHA trades at a lower P/E of 19.5x. CHA earns a higher WallStSmart Score of 54/100 (C-).

CHA

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 5.7Quality: 5.0

MCD

Buy

53

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHASignificantly Overvalued (-102.2%)

Margin of Safety

-102.2%

Fair Value

$5.10

Current Price

$10.12

$5.02 premium

UndervaluedFair: $5.10Overvalued
MCDSignificantly Overvalued (-31.1%)

Margin of Safety

-31.1%

Fair Value

$237.84

Current Price

$311.70

$73.86 premium

UndervaluedFair: $237.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHA2 strengths · Avg: 10.0/10
Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Return on EquityProfitability
38.7%10/10

Every $100 of equity generates 39 in profit

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

Areas to Watch

CHA2 concerns · Avg: 2.5/10
Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

EPS GrowthGrowth
-89.9%2/10

Earnings declined 89.9%

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

Comparative Analysis Report

WallStSmart Research

Bull Case : CHA

The strongest argument for CHA centers on Price/Book, Return on Equity. Profitability is solid with margins at 15.1% and operating margin at 3.2%. Revenue growth of 10.2% demonstrates continued momentum.

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%.

Bear Case : CHA

The primary concerns for CHA are Operating Margin, EPS Growth.

Bear Case : MCD

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

Key Dynamics to Monitor

CHA is growing revenue faster at 10.2% — sustainability is the question.

MCD generates stronger free cash flow (1.6B), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CHA scores higher overall (54/100 vs 53/100), backed by strong 15.1% margins and 10.2% 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.

Chagee Holdings Limited American Depositary Shares

CONSUMER CYCLICAL · RESTAURANTS · USA

China Telecom Corporation Limited, provides cable and mobile telecommunications services primarily in the People's Republic of China.

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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