McDonald's Corporation (MCD) vs Texas Roadhouse, Inc. (TXRH)

McDonald's Corporation and Texas Roadhouse, Inc. are both Restaurants companies. McDonald's Corporation is the larger, with a market value of $168.6B against $10.6B — 15.9× the size. McDonald's Corporation trades at the lower P/E: 19.2× against 25.5×. Texas Roadhouse, Inc. grew revenue faster over the last twelve months: 9.89% against 6.30%. McDonald's Corporation has the higher net margin (31.7% vs 6.63%) and the lower return on invested capital (21.1% vs 21.1%). Both pay a dividend; McDonald's Corporation yields more (2.31% vs 1.62%). Across the 22 metrics below, McDonald's Corporation leads on 14 and Texas Roadhouse, Inc. on 8.

Valuation

Metric MCD TXRH Restaurants median
P/E 19.21 25.50 22.14
P/S 6.05 1.68 0.91
P/B n/m 6.64 2.01
Price to free cash flow 21.15 23.96 19.41
EV/EBITDA 13.84 14.70 11.48
EV/Sales 7.53 1.66 1.20
Earnings yield 5.21% 3.92% 2.30%
Free cash flow yield 4.73% 4.17% 3.92%

Profitability

Metric MCD TXRH Restaurants median
Gross margin 57.38% 15.69% 38.77%
Operating margin 46.22% 7.75% 4.30%
Net margin 31.72% 6.63% 1.85%
Free cash flow margin 28.63% 7.02% 3.12%
Return on equity (464.67%) 27.13% 3.07%
Return on assets 14.71% 11.93% 1.50%
Return on invested capital 21.05% 21.14% 3.14%

Growth

Metric MCD TXRH Restaurants median
Revenue growth (TTM) 6.30% 9.89% 5.16%
EPS growth (last fiscal year) 4.92% (5.72%) —
Revenue growth, 5-year CAGR 6.96% 19.64% 10.57%
Net income growth, 5-year CAGR 12.60% 66.97% 0.00%

Health

Metric MCD TXRH Restaurants median
Debt to equity (38.97) 0.03 0.10
Current ratio 1.08 0.46 0.81
Net debt to EBITDA 2.69 (0.20) 0.43

Dividend

Metric MCD TXRH Restaurants median
Dividend yield 2.31% 1.62% 2.32%
Payout ratio 0.55 0.47 0.00

Size

Metric MCD TXRH Restaurants median
Market cap 168.57b 10.60b 482.66m

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