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MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis

Europe - BIT:1MCD - US5801351017 - Common Stock

262.85 EUR
+9.05 (+3.57%)
Last: 10/20/2025, 7:00:00 PM
Fundamental Rating

6

Taking everything into account, 1MCD scores 6 out of 10 in our fundamental rating. 1MCD was compared to 56 industry peers in the Hotels, Restaurants & Leisure industry. While 1MCD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1MCD is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

1MCD had positive earnings in the past year.
In the past year 1MCD had a positive cash flow from operations.
Each year in the past 5 years 1MCD has been profitable.
Each year in the past 5 years 1MCD had a positive operating cash flow.
1MCD.MI Yearly Net Income VS EBIT VS OCF VS FCF1MCD.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

1MCD's Return On Assets of 14.09% is amongst the best of the industry. 1MCD outperforms 94.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.40%, 1MCD belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCD is significantly above the industry average of 11.13%.
Industry RankSector Rank
ROA 14.09%
ROE N/A
ROIC 17.4%
ROA(3y)14.08%
ROA(5y)13.05%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.38%
ROIC(5y)16.68%
1MCD.MI Yearly ROA, ROE, ROIC1MCD.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150 -200

1.3 Margins

With an excellent Profit Margin value of 32.20%, 1MCD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
With an excellent Operating Margin value of 46.13%, 1MCD belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MCD has grown nicely.
Looking at the Gross Margin, with a value of 57.00%, 1MCD is in line with its industry, outperforming 55.36% of the companies in the same industry.
In the last couple of years the Gross Margin of 1MCD has grown nicely.
Industry RankSector Rank
OM 46.13%
PM (TTM) 32.2%
GM 57%
OM growth 3Y2.46%
OM growth 5Y1.77%
PM growth 3Y-0.79%
PM growth 5Y2.38%
GM growth 3Y1.56%
GM growth 5Y1.64%
1MCD.MI Yearly Profit, Operating, Gross Margins1MCD.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MCD is creating value.
Compared to 1 year ago, 1MCD has less shares outstanding
The number of shares outstanding for 1MCD has been reduced compared to 5 years ago.
The debt/assets ratio for 1MCD has remained at the same level compared to a year ago.
1MCD.MI Yearly Shares Outstanding1MCD.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
1MCD.MI Yearly Total Debt VS Total Assets1MCD.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

1MCD has an Altman-Z score of 4.84. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
1MCD's Altman-Z score of 4.84 is amongst the best of the industry. 1MCD outperforms 91.07% of its industry peers.
1MCD has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as 1MCD would need 6.00 years to pay back of all of its debts.
1MCD has a better Debt to FCF ratio (6.00) than 60.71% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6
Altman-Z 4.84
ROIC/WACC2.27
WACC7.65%
1MCD.MI Yearly LT Debt VS Equity VS FCF1MCD.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B

2.3 Liquidity

1MCD has a Current Ratio of 1.30. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1MCD (1.30) is better than 87.50% of its industry peers.
1MCD has a Quick Ratio of 1.29. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1MCD (1.29) is better than 87.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.29
1MCD.MI Yearly Current Assets VS Current Liabilites1MCD.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 0.93% over the past year.
Measured over the past years, 1MCD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
Looking at the last year, 1MCD shows a small growth in Revenue. The Revenue has grown by 1.17% in the last year.
The Revenue has been growing slightly by 3.94% on average over the past years.
EPS 1Y (TTM)0.93%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%7.41%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%

3.2 Future

The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y6.33%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
EPS Next 5Y9.23%
Revenue Next Year2.95%
Revenue Next 2Y4.22%
Revenue Next 3Y4.64%
Revenue Next 5Y5.06%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
1MCD.MI Yearly Revenue VS Estimates1MCD.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
1MCD.MI Yearly EPS VS Estimates1MCD.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20 25

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.59, 1MCD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1MCD is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. 1MCD is around the same levels.
A Price/Forward Earnings ratio of 22.55 indicates a rather expensive valuation of 1MCD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCD indicates a somewhat cheap valuation: 1MCD is cheaper than 60.71% of the companies listed in the same industry.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.59
Fwd PE 22.55
1MCD.MI Price Earnings VS Forward Price Earnings1MCD.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

1MCD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1MCD is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 31.58
EV/EBITDA 18.16
1MCD.MI Per share data1MCD.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MCD does not grow enough to justify the current Price/Earnings ratio.
1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.04
PEG (5Y)3.12
EPS Next 2Y7.41%
EPS Next 3Y7.89%

6

5. Dividend

5.1 Amount

1MCD has a Yearly Dividend Yield of 2.32%.
1MCD's Dividend Yield is a higher than the industry average which is at 3.01.
Compared to an average S&P500 Dividend Yield of 2.30, 1MCD has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.32%

5.2 History

The dividend of 1MCD is nicely growing with an annual growth rate of 7.43%!
Dividend Growth(5Y)7.43%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

1MCD pays out 59.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
1MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.52%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
1MCD.MI Yearly Income VS Free CF VS Dividend1MCD.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
1MCD.MI Dividend Payout.1MCD.MI Dividend Payout, showing the Payout Ratio.1MCD.MI Dividend Payout.PayoutRetained Earnings

MCDONALD'S CORP

BIT:1MCD (10/20/2025, 7:00:00 PM)

262.85

+9.05 (+3.57%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)08-06 2025-08-06/bmo
Earnings (Next)11-05 2025-11-05/bmo
Inst Owners74.98%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap187.57B
Revenue(TTM)26.06B
Net Income(TTM)8.39B
Analysts72.38
Price Target292.94 (11.45%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.32%
Yearly Dividend5.8
Dividend Growth(5Y)7.43%
DP59.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.06%
Min EPS beat(2)-0.53%
Max EPS beat(2)0.41%
EPS beat(4)1
Avg EPS beat(4)-0.35%
Min EPS beat(4)-1.13%
Max EPS beat(4)0.41%
EPS beat(8)3
Avg EPS beat(8)0.17%
EPS beat(12)7
Avg EPS beat(12)2.76%
EPS beat(16)10
Avg EPS beat(16)2.82%
Revenue beat(2)1
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.15%
PT rev (1m)-0.44%
PT rev (3m)-1.37%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 25.59
Fwd PE 22.55
P/S 8.36
P/FCF 31.58
P/OCF 22.24
P/B N/A
P/tB N/A
EV/EBITDA 18.16
EPS(TTM)10.27
EY3.91%
EPS(NY)11.65
Fwd EY4.43%
FCF(TTM)8.32
FCFY3.17%
OCF(TTM)11.82
OCFY4.5%
SpS31.45
BVpS-3.33
TBVpS-7.32
PEG (NY)4.04
PEG (5Y)3.12
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 14.09%
ROE N/A
ROCE 21.76%
ROIC 17.4%
ROICexc 18.01%
ROICexgc 19.2%
OM 46.13%
PM (TTM) 32.2%
GM 57%
FCFM 26.47%
ROA(3y)14.08%
ROA(5y)13.05%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.38%
ROIC(5y)16.68%
ROICexc(3y)19.5%
ROICexc(5y)17.88%
ROICexgc(3y)21.29%
ROICexgc(5y)19.5%
ROCE(3y)23.04%
ROCE(5y)20.89%
ROICexgc growth 3Y2.6%
ROICexgc growth 5Y2.93%
ROICexc growth 3Y2.55%
ROICexc growth 5Y2.53%
OM growth 3Y2.46%
OM growth 5Y1.77%
PM growth 3Y-0.79%
PM growth 5Y2.38%
GM growth 3Y1.56%
GM growth 5Y1.64%
F-Score7
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6
Debt/EBITDA 2.88
Cap/Depr 134.76%
Cap/Sales 11.11%
Interest Coverage 250
Cash Conversion 69.11%
Profit Quality 82.2%
Current Ratio 1.3
Quick Ratio 1.29
Altman-Z 4.84
F-Score7
WACC7.65%
ROIC/WACC2.27
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.22%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0.93%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%7.41%
EPS Next Y6.33%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year2.95%
Revenue Next 2Y4.22%
Revenue Next 3Y4.64%
Revenue Next 5Y5.06%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y10.03%
FCF growth 1Y3.89%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y12.2%
OCF growth 3Y1.11%
OCF growth 5Y3.07%

MCDONALD'S CORP / 1MCD.MI FAQ

What is the fundamental rating for 1MCD stock?

ChartMill assigns a fundamental rating of 6 / 10 to 1MCD.MI.


What is the valuation status of MCDONALD'S CORP (1MCD.MI) stock?

ChartMill assigns a valuation rating of 3 / 10 to MCDONALD'S CORP (1MCD.MI). This can be considered as Overvalued.


What is the profitability of 1MCD stock?

MCDONALD'S CORP (1MCD.MI) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for 1MCD stock?

The Price/Earnings (PE) ratio for MCDONALD'S CORP (1MCD.MI) is 25.59 and the Price/Book (PB) ratio is -78.92.


What is the expected EPS growth for MCDONALD'S CORP (1MCD.MI) stock?

The Earnings per Share (EPS) of MCDONALD'S CORP (1MCD.MI) is expected to grow by 6.33% in the next year.