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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 $196.8B against $12.6B — 15.6× the size. McDonald's Corporation trades at the lower P/E: 22.6× against 30.7×. Texas Roadhouse, Inc. grew revenue faster over the last twelve months: 9.89% against 5.77%. McDonald's Corporation has the higher net margin (32.4% vs 6.63%) and the lower return on invested capital (0.00% vs 21.1%). Both pay a dividend; McDonald's Corporation yields more (2.68% vs 1.53%). Across the 22 metrics below, McDonald's Corporation leads on 12 and Texas Roadhouse, Inc. on 10.

Valuation

Metric MCD TXRH Restaurants median
P/E 22.57 30.68 26.18
P/S 7.09 2.02 1.11
P/B n/m 7.99 2.06
Price to free cash flow 24.84 28.82 17.92
EV/EBITDA 15.78 17.75 12.81
EV/Sales 8.56 2.01 1.29
Earnings yield 4.43% 3.26% 2.23%
Free cash flow yield 4.03% 3.47% 3.23%

Profitability

Metric MCD TXRH Restaurants median
Gross margin 57.61% 15.69% 38.86%
Operating margin 46.94% 7.75% 4.59%
Net margin 32.38% 6.63% 1.83%
Free cash flow margin 0.00% 7.02% 2.47%
Return on equity 0.00% 27.13% 3.72%
Return on assets 0.00% 11.93% 1.10%
Return on invested capital 0.00% 21.14% 3.01%

Growth

Metric MCD TXRH Restaurants median
Revenue growth (TTM) 5.77% 9.89% 5.52%
EPS growth (last fiscal year) 4.92% (5.72%) (5.05%)
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 0.22
Current ratio 1.08 0.46 0.78
Net debt to EBITDA 2.69 (0.20) 0.43

Dividend

Metric MCD TXRH Restaurants median
Dividend yield 2.68% 1.53% 1.79%
Payout ratio 0.59 0.47 0.45

Size

Metric MCD TXRH Restaurants median
Market cap 196.75b 12.59b 612.23m

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