McDonald’s Corporation (MCD)vsYum China Holdings Inc (YUMC)
MCD
McDonald’s Corporation
$248.24
-0.10%
CONSUMER CYCLICAL · Cap: $178.70B
YUMC
Yum China Holdings Inc
$41.12
-0.56%
CONSUMER CYCLICAL · Cap: $14.74B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 123% more annual revenue ($27.70B vs $12.44B). MCD leads profitability with a 31.7% profit margin vs 7.8%. YUMC appears more attractively valued with a PEG of 0.97. YUMC earns a higher WallStSmart Score of 71/100 (B).
MCD
Buy53
out of 100
Grade: C-
YUMC
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.5%
Fair Value
$155.74
Current Price
$248.24
$92.50 premium
Intrinsic value data unavailable for YUMC.
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
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 21.4% YoY
Areas to Watch
Expensive relative to growth rate
3.7% revenue growth
ROE of 0.0% — below average capital efficiency
Weak financial health signals
7.8% margin — thin
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 : YUMC
The strongest argument for YUMC centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 12.6% demonstrates continued momentum. PEG of 0.97 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 : YUMC
The primary concerns for YUMC are Profit Margin.
Key Dynamics to Monitor
MCD carries more volatility with a beta of 0.41 — expect wider price swings.
YUMC is growing revenue faster at 12.6% — 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
YUMC scores higher overall (71/100 vs 53/100) and 12.6% revenue growth. Both earn "Strong 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.
Visit Website →Yum China Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.
Visit Website →Compare with Other RESTAURANTS Stocks
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