First Watch Restaurant Group Inc (FWRG)vsMcDonald’s Corporation (MCD)
FWRG
First Watch Restaurant Group Inc
$11.27
-1.66%
CONSUMER CYCLICAL · Cap: $700.64M
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 2099% more annual revenue ($26.88B vs $1.22B). MCD leads profitability with a 31.9% profit margin vs 1.6%. MCD trades at a lower P/E of 25.8x. FWRG earns a higher WallStSmart Score of 56/100 (C).
FWRG
Buy56
out of 100
Grade: C
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.3%
Fair Value
$14.51
Current Price
$11.27
$3.24 premium
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
Reasonable price relative to book value
Revenue surging 20.2% year-over-year
Earnings expanding 22.9% YoY
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
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 3.2% — below average capital efficiency
1.6% margin — thin
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 : FWRG
The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 20.2% 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 : FWRG
The primary concerns for FWRG are P/E Ratio, Market Cap, Return on Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk. Thin 1.6% margins leave little buffer for downturns.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
FWRG profiles as a growth stock while MCD is a mature play — different risk/reward profiles.
FWRG carries more volatility with a beta of 0.92 — expect wider price swings.
FWRG is growing revenue faster at 20.2% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
FWRG scores higher overall (56/100 vs 53/100) and 20.2% 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.
First Watch Restaurant Group Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
First Watch Restaurant Group Inc (FWRG) is a leading entity in the fast-casual dining landscape, focusing on breakfast, brunch, and lunch with an emphasis on health-conscious, fresh, and high-quality ingredients. Established in 1983, the company has developed a dedicated customer following through its innovative menu that evolves with culinary trends. First Watch's commitment to outstanding customer service and a distinctive dining experience is complemented by its strategic expansion into new markets, laying the foundation for sustainable growth and enhanced shareholder value in the competitive restaurant industry.
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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