MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - BIT:1MCD - US5801351017 - Common Stock
253.8 EUR
-4.8 (-1.86%)
Taking everything into account, 1MCD scores 6 out of 10 in our fundamental rating. 1MCD was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. While 1MCD has a great profitability rating, 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
In the past year 1MCD was profitable.
In the past year 1MCD had a positive cash flow from operations.
In the past 5 years 1MCD has always been profitable.
1MCD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MCD has a better Return On Assets (14.09%) than 91.94% of its industry peers.
1MCD's Return On Invested Capital of 17.40% is amongst the best of the industry. 1MCD outperforms 88.71% of its industry peers.
1MCD had an Average Return On Invested Capital over the past 3 years of 18.38%. This is significantly above the industry average of 11.85%.
| 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
1MCD has a Profit Margin of 32.20%. This is amongst the best in the industry. 1MCD outperforms 98.39% of its industry peers.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
1MCD's Operating Margin of 46.13% is amongst the best of the industry. 1MCD outperforms 98.39% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 57.00%, 1MCD is in line with its industry, outperforming 58.06% of the companies in the same industry.
1MCD's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for 1MCD has been reduced compared to 1 year ago.
1MCD has less shares outstanding than it did 5 years ago.
1MCD has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 4.78 indicates that 1MCD is not in any danger for bankruptcy at the moment.
1MCD's Altman-Z score of 4.78 is amongst the best of the industry. 1MCD outperforms 90.32% 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 Debt to FCF ratio of 6.00. This is in the better half of the industry: 1MCD outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.78 |
ROIC/WACC2.28
WACC7.62%
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.
With an excellent Current ratio value of 1.30, 1MCD belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a Quick ratio of 1.29. This is amongst the best in the industry. 1MCD outperforms 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
1MCD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.17% in the past 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
1MCD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
Based on estimates for the next years, 1MCD will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.88, 1MCD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1MCD indicates a somewhat cheap valuation: 1MCD is cheaper than 69.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, 1MCD is valued at the same level.
With a Price/Forward Earnings ratio of 21.91, 1MCD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCD is on the same level as its industry peers.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 21.91 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA is on the same level as the industry average.
1MCD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.67 | ||
| EV/EBITDA | 17.72 |
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)3.93
PEG (5Y)3.03
EPS Next 2Y7.41%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, 1MCD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.12, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of 1MCD grows each year by 7.43%, which is quite nice.
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.
The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.52%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
BIT:1MCD (10/8/2025, 7:00:00 PM)
253.8
-4.8 (-1.86%)
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 Cap181.11B
Analysts72.38
Price Target292.94 (15.42%)
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 | 24.88 | ||
| Fwd PE | 21.91 | ||
| P/S | 8.12 | ||
| P/FCF | 30.67 | ||
| P/OCF | 21.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.72 |
EPS(TTM)10.2
EY4.02%
EPS(NY)11.59
Fwd EY4.56%
FCF(TTM)8.28
FCFY3.26%
OCF(TTM)11.75
OCFY4.63%
SpS31.26
BVpS-3.31
TBVpS-7.28
PEG (NY)3.93
PEG (5Y)3.03
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%
ROICexcg growth 3Y2.6%
ROICexcg 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 | 4.78 |
F-Score7
WACC7.62%
ROIC/WACC2.28
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%