McDonald’s Corporation (MCD)vsShake Shack Inc (SHAK)
MCD
McDonald’s Corporation
$252.53
-0.21%
CONSUMER CYCLICAL · Cap: $178.70B
SHAK
Shake Shack Inc
$63.65
+3.16%
CONSUMER CYCLICAL · Cap: $2.70B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 1685% more annual revenue ($27.70B vs $1.55B). MCD leads profitability with a 31.7% profit margin vs 2.6%. MCD appears more attractively valued with a PEG of 2.18. MCD earns a higher WallStSmart Score of 53/100 (C-).
MCD
Buy53
out of 100
Grade: C-
SHAK
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.5%
Fair Value
$155.44
Current Price
$252.53
$97.09 premium
Margin of Safety
+30.1%
Fair Value
$138.90
Current Price
$63.65
$75.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 2.0B in free cash flow
17.2% revenue growth
Areas to Watch
Expensive relative to growth rate
3.7% revenue growth
ROE of 0.0% — below average capital efficiency
Weak financial health signals
ROE of 7.8% — below average capital efficiency
2.6% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 31.7% and operating margin at 46.5%.
Bull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.
Bear Case : MCD
The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.
Bear Case : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, PEG Ratio. A P/E of 70.8x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
MCD profiles as a value stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.66 — expect wider price swings.
SHAK is growing revenue faster at 17.2% — 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 42/100), backed by strong 31.7% margins. SHAK offers better value entry with a 30.1% 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.
Visit Website →Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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