McDonald’s Corporation (MCD)vsRed Robin Gourmet Burgers Inc (RRGB)
MCD
McDonald’s Corporation
$279.84
+0.01%
CONSUMER CYCLICAL · Cap: $196.36B
RRGB
Red Robin Gourmet Burgers Inc
$4.43
+0.45%
CONSUMER CYCLICAL · Cap: $85.84M
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 2195% more annual revenue ($27.45B vs $1.20B). MCD leads profitability with a 31.6% profit margin vs -2.2%. RRGB appears more attractively valued with a PEG of 1.36. MCD earns a higher WallStSmart Score of 55/100 (C-).
MCD
Buy55
out of 100
Grade: C-
RRGB
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.8%
Fair Value
$150.63
Current Price
$279.84
$129.21 premium
Intrinsic value data unavailable for RRGB.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.7B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
0.0% earnings growth
Smaller company, higher risk/reward
Operating margin of 2.4%
ROE of -238.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bull Case : RRGB
The strongest argument for RRGB centers on Debt/Equity. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : RRGB
The primary concerns for RRGB are EPS Growth, Market Cap, Operating Margin.
Key Dynamics to Monitor
MCD profiles as a mature stock while RRGB is a turnaround play — different risk/reward profiles.
RRGB carries more volatility with a beta of 2.49 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (55/100 vs 34/100), backed by strong 31.6% margins. Both earn "Buy" and "Avoid" 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 →Red Robin Gourmet Burgers Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Red Robin Gourmet Burgers, Inc. develops, operates and franchises full-service restaurants and casual dining. The company is headquartered in Greenwood Village, Colorado.
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