WallStSmart

McDonald’s Corporation (MCD)vsPapa John's International Inc (PZZA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 1308% more annual revenue ($27.70B vs $1.97B). MCD leads profitability with a 31.7% profit margin vs 1.4%. MCD appears more attractively valued with a PEG of 2.18. MCD earns a higher WallStSmart Score of 53/100 (C-).

MCD

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.79

PZZA

Hold

35

out of 100

Grade: F

Growth: 2.0Profit: 5.0Value: 6.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.78
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCDSignificantly Overvalued (-59.5%)

Margin of Safety

-59.5%

Fair Value

$155.74

Current Price

$250.35

$94.61 premium

UndervaluedFair: $155.74Overvalued
PZZAUndervalued (+34.8%)

Margin of Safety

+34.8%

Fair Value

$52.15

Current Price

$20.15

$32.00 discount

UndervaluedFair: $52.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$178.70B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.98B8/10

Generating 2.0B in free cash flow

PZZA1 strengths · Avg: 10.0/10
Debt/EquityHealth
-2.0610/10

Conservative balance sheet, low leverage

Areas to Watch

MCD4 concerns · Avg: 3.5/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

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

PZZA4 concerns · Avg: 3.3/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Market CapQuality
$651.19M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PZZA

The strongest argument for PZZA centers on Debt/Equity.

Bear Case : MCD

The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.

Bear Case : PZZA

The primary concerns for PZZA are PEG Ratio, Market Cap, Return on Equity. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

PZZA carries more volatility with a beta of 1.06 — 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 35/100), backed by strong 31.7% margins. PZZA offers better value entry with a 34.8% margin of safety. 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.

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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.

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