MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
BIT:1MCD - Euronext Milan - US5801351017 - Common Stock - Currency: EUR
Taking everything into account, 1MCD scores 6 out of 10 in our fundamental rating. 1MCD was compared to 58 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 valied quite expensively at the moment, while 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.
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 Return On Assets of 14.49%. This is amongst the best in the industry. 1MCD outperforms 93.10% of its industry peers.
1MCD has a better Return On Invested Capital (18.02%) than 93.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCD is significantly above the industry average of 10.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | N/A | ||
| ROIC | 18.02% |
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 better Profit Margin (31.75%) than 98.28% of its industry peers.
1MCD's Profit Margin has improved in the last couple of years.
1MCD has a Operating Margin of 45.86%. This is amongst the best in the industry. 1MCD outperforms 96.55% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
The Gross Margin of 1MCD (56.83%) is comparable to the rest of the industry.
1MCD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.86% | ||
| PM (TTM) | 31.75% | ||
| GM | 56.83% |
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
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
1MCD has an Altman-Z score of 5.06. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
1MCD's Altman-Z score of 5.06 is amongst the best of the industry. 1MCD outperforms 91.38% of its industry peers.
1MCD has a debt to FCF ratio of 5.80. This is a neutral value as 1MCD would need 5.80 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.80, 1MCD is doing good in the industry, outperforming 63.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 5.06 |
ROIC/WACC2
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1MCD should not have too much problems paying its short term obligations.
The Current ratio of 1MCD (1.18) is better than 74.14% of its industry peers.
1MCD has a Quick Ratio of 1.17. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, 1MCD is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
1MCD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.58%.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
The Revenue has decreased by -0.22% in the past year.
The Revenue has been growing slightly by 3.94% on average over the past years.
EPS 1Y (TTM)-2.58%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
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 9.03% yearly.
Based on estimates for the next years, 1MCD will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y5.56%
EPS Next 2Y6.85%
EPS Next 3Y7.45%
EPS Next 5Y9.03%
Revenue Next Year1.54%
Revenue Next 2Y3.46%
Revenue Next 3Y4.23%
Revenue Next 5Y4.81%
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 26.42, 1MCD can be considered very expensive at the moment.
63.79% of the companies in the same industry are more expensive than 1MCD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1MCD to the average of the S&P500 Index (27.11), we can say 1MCD is valued inline with the index average.
A Price/Forward Earnings ratio of 23.08 indicates a rather expensive valuation of 1MCD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCD is on the same level as its industry peers.
1MCD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 23.08 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA ratio is in line with the industry average.
1MCD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.95 | ||
| EV/EBITDA | 18.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.75
PEG (5Y)3.22
EPS Next 2Y6.85%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
1MCD's Dividend Yield is a higher than the industry average which is at 2.85.
Compared to an average S&P500 Dividend Yield of 2.39, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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 60.41% of its income as dividend. This is not a sustainable payout ratio.
1MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.41%
EPS Next 2Y6.85%
EPS Next 3Y7.45%
BIT:1MCD (8/7/2025, 7:00:00 PM)
263.9
-0.3 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.69%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap188.70B
Analysts72.86
Price Target297.02 (12.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend5.8
Dividend Growth(5Y)7.43%
DP60.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.83%
Min EPS beat(2)-1.13%
Max EPS beat(2)-0.53%
EPS beat(4)0
Avg EPS beat(4)-1.51%
Min EPS beat(4)-4.24%
Max EPS beat(4)-0.14%
EPS beat(8)3
Avg EPS beat(8)1.71%
EPS beat(12)7
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)3.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-0.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)-0.62%
PT rev (3m)-3.66%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 23.08 | ||
| P/S | 8.6 | ||
| P/FCF | 32.95 | ||
| P/OCF | 23.3 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.62 |
EPS(TTM)9.99
EY3.79%
EPS(NY)11.43
Fwd EY4.33%
FCF(TTM)8.01
FCFY3.03%
OCF(TTM)11.33
OCFY4.29%
SpS30.7
BVpS-4.12
TBVpS-7.93
PEG (NY)4.75
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | N/A | ||
| ROCE | 22.53% | ||
| ROIC | 18.02% | ||
| ROICexc | 18.46% | ||
| ROICexgc | 19.69% | ||
| OM | 45.86% | ||
| PM (TTM) | 31.75% | ||
| GM | 56.83% | ||
| FCFM | 26.09% |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 131.89% | ||
| Cap/Sales | 10.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.26% | ||
| Profit Quality | 82.17% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 5.06 |
F-Score5
WACC9.03%
ROIC/WACC2
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)-2.58%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-1.11%
EPS Next Y5.56%
EPS Next 2Y6.85%
EPS Next 3Y7.45%
EPS Next 5Y9.03%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
Revenue Next Year1.54%
Revenue Next 2Y3.46%
Revenue Next 3Y4.23%
Revenue Next 5Y4.81%
EBIT growth 1Y-0.13%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.21%
EBIT Next 3Y11.52%
EBIT Next 5Y9.83%
FCF growth 1Y18.21%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y23.6%
OCF growth 3Y1.11%
OCF growth 5Y3.07%