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Balancing Dividends and Fundamentals: The Case of NYSE:MCD.

By Mill Chart

Last update: Nov 28, 2023

Unearth the potential of MCDONALD'S CORP (NYSE:MCD) as a dividend stock recommended by our stock screening tool. NYSE:MCD maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Assessment of NYSE:MCD

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:MCD has been assigned a 7 for dividend:

  • Compared to an average industry Dividend Yield of 3.00, MCD pays a better dividend. On top of this MCD pays more dividend than 84.67% of the companies listed in the same industry.
  • On average, the dividend of MCD grows each year by 8.08%, which is quite nice.
  • MCD has been paying a dividend for at least 10 years, so it has a reliable track record.
  • MCD has not decreased their dividend for at least 10 years, which is a reliable track record.
  • The dividend of MCD is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NYSE:MCD

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MCD has achieved a 6 out of 10:

  • MCD has an Altman-Z score of 5.12. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of MCD (5.12) is better than 91.24% of its industry peers.
  • Looking at the Debt to FCF ratio, with a value of 5.18, MCD is in the better half of the industry, outperforming 73.72% of the companies in the same industry.
  • The Current ratio of MCD (1.71) is better than 77.37% of its industry peers.
  • The Quick ratio of MCD (1.70) is better than 81.02% of its industry peers.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MCD, the assigned 9 is a significant indicator of profitability:

  • MCD's Return On Assets of 16.00% is amongst the best of the industry. MCD outperforms 93.43% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.34%, MCD belongs to the top of the industry, outperforming 91.24% of the companies in the same industry.
  • MCD had an Average Return On Invested Capital over the past 3 years of 15.49%. This is significantly above the industry average of 10.03%.
  • The 3 year average ROIC (15.49%) for MCD is below the current ROIC(19.34%), indicating increased profibility in the last year.
  • With an excellent Profit Margin value of 33.31%, MCD belongs to the best of the industry, outperforming 98.54% of the companies in the same industry.
  • In the last couple of years the Profit Margin of MCD has grown nicely.
  • The Operating Margin of MCD (46.01%) is better than 99.27% of its industry peers.
  • MCD's Operating Margin has improved in the last couple of years.
  • MCD has a Gross Margin of 57.24%. This is in the better half of the industry: MCD outperforms 63.50% of its industry peers.
  • In the last couple of years the Gross Margin of MCD has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of MCD for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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MCDONALD'S CORP

NYSE:MCD (2/26/2024, 7:04:00 PM)

After market: 297.5 +0.38 (+0.13%)

297.12

-0.63 (-0.21%)

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