MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
BIT:1MCD - US5801351017 - Common Stock
266.7 EUR
-3 (-1.11%)
1MCD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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 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.
1MCD had a positive operating cash flow in the past year.
1MCD had positive earnings in each of the past 5 years.
1MCD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MCD's Return On Assets of 14.09% is amongst the best of the industry. 1MCD outperforms 92.16% 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 92.16% 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 11.20%.
| 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's Profit Margin of 32.20% is amongst the best of the industry. 1MCD outperforms 98.04% of its industry peers.
1MCD's Profit Margin has improved in the last couple of years.
1MCD has a Operating Margin of 46.13%. This is amongst the best in the industry. 1MCD outperforms 98.04% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
1MCD has a Gross Margin (57.00%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MCD is creating value.
1MCD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1MCD has less shares outstanding
The debt/assets ratio for 1MCD has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.88 indicates that 1MCD is not in any danger for bankruptcy at the moment.
1MCD has a better Altman-Z score (4.88) than 90.20% 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.
Looking at the Debt to FCF ratio, with a value of 6.00, 1MCD is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.88 |
ROIC/WACC2.05
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.30 indicates that 1MCD should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.30, 1MCD belongs to the best of the industry, outperforming 82.35% 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 better Quick ratio (1.29) than 82.35% 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%.
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.
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
Based on estimates for the next years, 1MCD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.09% on average per year.
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y6.48%
EPS Next 2Y7.58%
EPS Next 3Y7.9%
EPS Next 5Y9.09%
Revenue Next Year3%
Revenue Next 2Y4.32%
Revenue Next 3Y4.71%
Revenue Next 5Y5.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 26.20, 1MCD can be considered very expensive at the moment.
1MCD's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MCD is cheaper than 62.75% of the companies in the same industry.
1MCD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 23.00, 1MCD is valued on the expensive side.
1MCD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.54. 1MCD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MCD is on the same level as its industry peers.
60.78% of the companies in the same industry are cheaper than 1MCD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.3 | ||
| EV/EBITDA | 18.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1MCD may justify a higher PE ratio.
PEG (NY)4.05
PEG (5Y)3.2
EPS Next 2Y7.58%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.23%.
1MCD's Dividend Yield is a higher than the industry average which is at 2.97.
Compared to an average S&P500 Dividend Yield of 2.45, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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
59.52% of the earnings are spent on dividend by 1MCD. 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 2Y7.58%
EPS Next 3Y7.9%
BIT:1MCD (9/9/2025, 7:00:00 PM)
266.7
-3 (-1.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.63%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap190.32B
Analysts72.56
Price Target297.95 (11.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend5.79
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)0.31%
PT rev (3m)-0.31%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)1.53%
EPS NY rev (1m)0.87%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 23 | ||
| P/S | 8.55 | ||
| P/FCF | 32.3 | ||
| P/OCF | 22.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.51 |
EPS(TTM)10.18
EY3.82%
EPS(NY)11.6
Fwd EY4.35%
FCF(TTM)8.26
FCFY3.1%
OCF(TTM)11.72
OCFY4.4%
SpS31.19
BVpS-3.3
TBVpS-7.26
PEG (NY)4.05
PEG (5Y)3.2
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 | 4.88 |
F-Score7
WACC8.47%
ROIC/WACC2.05
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 Y6.48%
EPS Next 2Y7.58%
EPS Next 3Y7.9%
EPS Next 5Y9.09%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year3%
Revenue Next 2Y4.32%
Revenue Next 3Y4.71%
Revenue Next 5Y5.07%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.26%
EBIT Next 3Y11.72%
EBIT Next 5Y9.93%
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%