MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - BIT:1MCD - US5801351017 - Common Stock
262.85 EUR
+9.05 (+3.57%)
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.27
WACC7.65%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 22.55 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 18.16 |
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%
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 Rank | Sector 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%
BIT:1MCD (10/20/2025, 7:00:00 PM)
262.85
+9.05 (+3.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.