WallStSmart

Good Times Restaurants Inc (GTIM)vsMcDonald’s Corporation (MCD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 20405% more annual revenue ($27.70B vs $135.10M). MCD leads profitability with a 31.7% profit margin vs 1.6%. GTIM appears more attractively valued with a PEG of 1.22. MCD earns a higher WallStSmart Score of 53/100 (C-).

GTIM

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 4.0Value: 8.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.71

MCD

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 3.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GTIMUndervalued (+88.4%)

Margin of Safety

+88.4%

Fair Value

$10.64

Current Price

$1.50

$9.14 discount

UndervaluedFair: $10.64Overvalued
MCDSignificantly Overvalued (-74.7%)

Margin of Safety

-74.7%

Fair Value

$155.09

Current Price

$266.93

$111.84 premium

UndervaluedFair: $155.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GTIM3 strengths · Avg: 9.3/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
28.6%8/10

Earnings expanding 28.6% YoY

MCD5 strengths · Avg: 9.4/10
Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
46.5%10/10

Strong operational efficiency at 46.5%

Debt/EquityHealth
-53.3610/10

Conservative balance sheet, low leverage

Market CapQuality
$187.90B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.98B8/10

Generating 2.0B in free cash flow

Areas to Watch

GTIM4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Market CapQuality
$16.05M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

MCD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

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
2.542/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GTIM

The strongest argument for GTIM centers on P/E Ratio, Price/Book, EPS Growth. PEG of 1.22 suggests the stock is reasonably priced for its growth.

Bull Case : MCD

The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.7% and operating margin at 46.5%.

Bear Case : GTIM

The primary concerns for GTIM are Altman Z-Score, Market Cap, Return on Equity. Thin 1.6% margins leave little buffer for downturns.

Bear Case : MCD

The primary concerns for MCD are Revenue Growth, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

GTIM carries more volatility with a beta of 0.58 — expect wider price swings.

MCD is growing revenue faster at 3.7% — sustainability is the question.

MCD generates stronger free cash flow (2.0B), providing more financial flexibility.

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

Bottom Line

MCD scores higher overall (53/100 vs 51/100), backed by strong 31.7% margins. GTIM offers better value entry with a 88.4% margin of safety. 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.

Good Times Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Good Times Restaurants Inc., is dedicated to the restaurant business in the United States. The company is headquartered in Lakewood, Colorado.

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 →

Want to dig deeper into these stocks?