Brinker International Inc (EAT)vsMcDonald’s Corporation (MCD)
EAT
Brinker International Inc
$147.11
-2.96%
CONSUMER CYCLICAL · Cap: $6.54B
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 373% more annual revenue ($26.88B vs $5.69B). MCD leads profitability with a 31.9% profit margin vs 8.0%. 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
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.3%
Fair Value
$219.83
Current Price
$147.11
$72.72 discount
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
Trading at 16.9x book value
ROE of 1.8% — below average capital efficiency
8.0% margin — thin
Elevated debt levels
Moderate valuation
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 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 31.9% and operating margin at 45.1%.
Bear Case : EAT
The primary concerns for EAT are Price/Book, Return on Equity, Profit Margin. Debt-to-equity of 4.65 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
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 1.36 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
EAT scores higher overall (61/100 vs 53/100). 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
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