MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
BIT:1MCD - Euronext Milan - US5801351017 - Common Stock - Currency: EUR
1MCD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Hotels, Restaurants & Leisure industry. 1MCD has an excellent profitability rating, but there are some minor concerns on its financial health. 1MCD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MCD was profitable.
1MCD had a positive operating cash flow in the past year.
1MCD had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MCD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.49%, 1MCD belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
1MCD has a Return On Invested Capital of 18.02%. This is amongst the best in the industry. 1MCD outperforms 93.22% 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 10.65%.
| 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
With an excellent Profit Margin value of 31.75%, 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.
The Operating Margin of 1MCD (45.86%) is better than 98.31% of its industry peers.
In the last couple of years the Operating Margin of 1MCD has grown nicely.
1MCD's Gross Margin of 56.83% is in line compared to the rest of the industry. 1MCD outperforms 57.63% of its industry peers.
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
1MCD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1MCD has less shares outstanding than it did 1 year ago.
1MCD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MCD has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.92 indicates that 1MCD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.92, 1MCD belongs to the top of the industry, outperforming 91.53% of the companies in the same industry.
The Debt to FCF ratio of 1MCD is 5.80, which is a neutral value as it means it would take 1MCD, 5.80 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.80, 1MCD is doing good in the industry, outperforming 62.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 4.92 |
ROIC/WACC2.07
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a Current ratio of 1.18. This is in the better half of the industry: 1MCD outperforms 77.97% of its industry peers.
A Quick Ratio of 1.17 indicates that 1MCD should not have too much problems paying 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 77.97% 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%.
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.
1MCD shows a decrease in Revenue. In the last year, the revenue decreased by -0.22%.
1MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
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
Based on estimates for the next years, 1MCD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.03% on average per year.
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
1MCD is valuated rather expensively with a Price/Earnings ratio of 24.85.
Compared to the rest of the industry, the Price/Earnings ratio of 1MCD indicates a somewhat cheap valuation: 1MCD is cheaper than 62.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, 1MCD is valued at the same level.
1MCD is valuated rather expensively with a Price/Forward Earnings ratio of 21.70.
Based on the Price/Forward Earnings ratio, 1MCD is valued a bit cheaper than 61.02% of the companies in the same industry.
1MCD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 21.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MCD.
1MCD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.99 | ||
| EV/EBITDA | 17.67 |
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.
The excellent profitability rating of 1MCD may justify a higher PE ratio.
PEG (NY)4.47
PEG (5Y)3.03
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 2.92.
1MCD's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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 60.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.41%
EPS Next 2Y6.85%
EPS Next 3Y7.45%
BIT:1MCD (6/30/2025, 7:00:00 PM)
248.75
-36.75 (-12.87%)
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 Cap177.86B
Analysts72.86
Price Target297.02 (19.41%)
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 | 24.85 | ||
| Fwd PE | 21.7 | ||
| P/S | 8.08 | ||
| P/FCF | 30.99 | ||
| P/OCF | 21.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.67 |
EPS(TTM)10.01
EY4.02%
EPS(NY)11.46
Fwd EY4.61%
FCF(TTM)8.03
FCFY3.23%
OCF(TTM)11.35
OCFY4.56%
SpS30.77
BVpS-4.13
TBVpS-7.95
PEG (NY)4.47
PEG (5Y)3.03
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 | 4.92 |
F-Score5
WACC8.7%
ROIC/WACC2.07
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%