WallStSmart

McDonald’s Corporation (MCD)vsRCI Hospitality Holdings Inc (RICK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 9640% more annual revenue ($27.70B vs $284.42M). MCD leads profitability with a 31.7% profit margin vs -1.5%. RICK appears more attractively valued with a PEG of 0.79. RICK earns a higher WallStSmart Score of 60/100 (C).

MCD

Buy

53

out of 100

Grade: C-

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

RICK

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 7.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCDSignificantly Overvalued (-62.5%)

Margin of Safety

-62.5%

Fair Value

$155.44

Current Price

$252.53

$97.09 premium

UndervaluedFair: $155.44Overvalued
RICKUndervalued (+53.0%)

Margin of Safety

+53.0%

Fair Value

$49.75

Current Price

$29.44

$20.31 discount

UndervaluedFair: $49.75Overvalued

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

RICK3 strengths · Avg: 9.3/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
80.4%10/10

Earnings expanding 80.4% YoY

PEG RatioValuation
0.798/10

Growing faster than its price suggests

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

RICK4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

Market CapQuality
$224.57M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.143/10

Elevated debt levels

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 : RICK

The strongest argument for RICK centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : MCD

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

Bear Case : RICK

The primary concerns for RICK are Revenue Growth, Altman Z-Score, Market Cap.

Key Dynamics to Monitor

MCD profiles as a value stock while RICK is a turnaround play — different risk/reward profiles.

RICK carries more volatility with a beta of 0.79 — expect wider price swings.

RICK is growing revenue faster at 3.9% — sustainability is the question.

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

Bottom Line

RICK scores higher overall (60/100 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.

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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RCI Hospitality Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

RCI Hospitality Holdings, Inc., is engaged in hospitality and related businesses in the United States. The company is headquartered in Houston, Texas.

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