Brinker International Inc (EAT)vsMcDonald’s Corporation (MCD)
EAT
Brinker International Inc
$164.46
-0.26%
CONSUMER CYCLICAL · Cap: $6.83B
MCD
McDonald’s Corporation
$279.84
-3.05%
CONSUMER CYCLICAL · Cap: $203.29B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 379% more annual revenue ($27.45B vs $5.73B). MCD leads profitability with a 31.6% profit margin vs 8.1%. EAT appears more attractively valued with a PEG of 0.89. EAT earns a higher WallStSmart Score of 61/100 (C+).
EAT
Buy61
out of 100
Grade: C+
MCD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for EAT.
Margin of Safety
-84.4%
Fair Value
$151.11
Current Price
$279.84
$128.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 114 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
Trading at 17.4x book value
3.2% revenue growth
Elevated debt levels
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : EAT
The strongest argument for EAT centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.89 suggests the stock is reasonably priced for its growth.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bear Case : EAT
The primary concerns for EAT are Price/Book, Revenue Growth, Debt/Equity. Debt-to-equity of 4.31 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
EAT profiles as a value stock while MCD is a mature play — different risk/reward profiles.
EAT carries more volatility with a beta of 1.28 — 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
EAT scores higher overall (61/100 vs 56/100). 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.
Brinker International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.
Visit Website →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 →Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?