McDonald’s Corporation (MCD)vsPapa John's International Inc (PZZA)
MCD
McDonald’s Corporation
$311.70
+1.25%
CONSUMER CYCLICAL · Cap: $219.68B
PZZA
Papa John's International Inc
$33.12
-4.22%
CONSUMER CYCLICAL · Cap: $1.09B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 1209% more annual revenue ($26.88B vs $2.05B). MCD leads profitability with a 31.9% profit margin vs 1.5%. PZZA appears more attractively valued with a PEG of 2.12. MCD earns a higher WallStSmart Score of 53/100 (C-).
MCD
Buy53
out of 100
Grade: C-
PZZA
Hold35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.1%
Fair Value
$237.84
Current Price
$311.70
$73.86 premium
Margin of Safety
-455.7%
Fair Value
$6.12
Current Price
$33.12
$27.00 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
No standout strengths identified
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : PZZA
PZZA has a balanced fundamental profile.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : PZZA
The primary concerns for PZZA are PEG Ratio, P/E Ratio, Market Cap. Thin 1.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
MCD profiles as a mature stock while PZZA is a value play — different risk/reward profiles.
PZZA carries more volatility with a beta of 1.24 — 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
MCD scores higher overall (53/100 vs 35/100), backed by strong 31.9% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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 →Papa John's International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Papa John's International, Inc. operates and franchises pizza delivery and take-out restaurants under the Papa John's trademark in the United States and internationally. The company is headquartered in Louisville, Kentucky.
Visit Website →Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?