WallStSmart

McDonald’s Corporation (MCD)vsRed Robin Gourmet Burgers Inc (RRGB)

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Smart Verdict

WallStSmart Research — data-driven comparison

McDonald’s Corporation generates 2228% more annual revenue ($27.70B vs $1.19B). MCD leads profitability with a 31.7% profit margin vs -2.5%. RRGB appears more attractively valued with a PEG of 1.36. 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

RRGB

Avoid

34

out of 100

Grade: F

Growth: 2.0Profit: 3.0Value: 5.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.49
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

Intrinsic value data unavailable for RRGB.

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

RRGB1 strengths · Avg: 10.0/10
Debt/EquityHealth
-4.6910/10

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

RRGB4 concerns · Avg: 2.5/10
Market CapQuality
$160.12M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Return on EquityProfitability
-238.3%2/10

ROE of -238.3% — below average capital efficiency

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

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 : 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 PEG Ratio, Revenue Growth, Return on Equity.

Bear Case : RRGB

The primary concerns for RRGB are Market Cap, Operating Margin, Return on Equity.

Key Dynamics to Monitor

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

RRGB carries more volatility with a beta of 2.44 — 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.

Bottom Line

MCD scores higher overall (53/100 vs 34/100), backed by strong 31.7% 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.

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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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