McDonald's Corp (MCD) is overvalued and Restaurant Brands International Inc (QSR) is slightly undervalued.
Against our estimates of intrinsic value, QSR trades at the wider discount: a margin of safety of +8%, against -21% for MCD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $206.94; the price of $250.35 is 21% above that value, and 81% of that value comes from beyond year five.
Leak Score 60/100 on 8 of 12 signals
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $78.55; the price of $71.91 is 8% below that value, and 82% of that value comes from beyond year five.
Leak Score 39/100 on 9 of 12 signals
| Metric | MCD | QSR |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $250.35 | $71.91 |
| Intrinsic value | $206.94 | $78.55 |
| Margin of safety | -21% | +8% |
| Leak Score | 60/100 (8/12) | 39/100 (9/12) |
| Market cap | $177.2B | $32.7B |
| Revenue growth, 5 years | 7.0% | 13.7% |
| Operating margin | 45.7% | 27.2% |
| Net margin | 31.7% | 13.1% |
| Return on equity | — | 39.0% |
| Debt to equity | — | 4.07 |
| P/E | 20.3x | 21.3x |
| Forward P/E | 18.0x | 16.2x |
| P/B | — | 8.4x |
| Dividend yield | 3.0% | 3.6% |