US5801351017 - Common Stock

We assign a fundamental rating of **7** out of 10 to **MCD**. **MCD** was compared to 135 industry peers in the **Hotels, Restaurants & Leisure** industry. **MCD** has an excellent profitability rating, but there are some minor concerns on its financial health. **MCD** is quite expensive at the moment. It does show a decent growth rate. **MCD** also has an excellent dividend rating. These ratings could make **MCD** a good candidate for dividend investing.

In the past year **MCD** was profitable.

In the past year **MCD** had a positive cash flow from operations.

In the past 5 years **MCD** has always been profitable.

Each year in the past 5 years **MCD** had a positive operating cash flow.

Measured over the past 3 years, the **Average Return On Invested Capital** for **MCD** is significantly above the industry average of **10.31%**.

The last **Return On Invested Capital** (**18.86%**) for **MCD** is above the 3 year average (**17.45%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 15.08% | ||

ROE | N/A | ||

ROIC | 18.86% |

ROA(3y)13.78%

ROA(5y)12.6%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)17.45%

ROIC(5y)16.19%

In the last couple of years the **Profit Margin** of **MCD** has grown nicely.

Looking at the **Operating Margin**, with a value of **46.07%**, **MCD** belongs to the top of the industry, outperforming **100.00%** of the companies in the same industry.

In the last couple of years the **Operating Margin** of **MCD** has grown nicely.

In the last couple of years the **Gross Margin** of **MCD** has grown nicely.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 46.07% | ||

PM (TTM) | 33.22% | ||

GM | 57.12% |

OM growth 3Y7.08%

OM growth 5Y2.56%

PM growth 3Y10.49%

PM growth 5Y3.58%

GM growth 3Y4.01%

GM growth 5Y2.31%

Compared to 1 year ago, **MCD** has less shares outstanding

The debt/assets ratio for **MCD** is higher compared to a year ago.

An Altman-Z score of **4.68** indicates that **MCD** is not in any danger for bankruptcy at the moment.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | N/A | ||

Debt/FCF | 5.64 | ||

Altman-Z | 4.68 |

ROIC/WACC2.24

WACC8.42%

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.16 | ||

Quick Ratio | 1.16 |

The **Revenue** has grown by **9.97%** in the past year. This is quite good.

The **Revenue** has been growing slightly by **3.70%** on average over the past years.

EPS 1Y (TTM)18.22%

EPS 3Y25.43%

EPS 5Y8.75%

EPS growth Q2Q13.9%

Revenue 1Y (TTM)9.97%

Revenue growth 3Y9.9%

Revenue growth 5Y3.7%

Revenue growth Q2Q8.09%

Based on estimates for the next years, **MCD** will show a quite strong growth in **Earnings Per Share**. The EPS will grow by **11.06%** on average per year.

Based on estimates for the next years, **MCD** will show a small growth in **Revenue**. The Revenue will grow by **5.42%** on average per year.

EPS Next Y5.11%

EPS Next 2Y7.07%

EPS Next 3Y7.78%

EPS Next 5Y11.06%

Revenue Next Year5.27%

Revenue Next 2Y5.65%

Revenue Next 3Y5.92%

Revenue Next 5Y5.42%

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Based on the **Price/Earnings** ratio of **22.78**, the valuation of **MCD** can be described as rather expensive.

Compared to the rest of the industry, the **Price/Earnings** ratio of **MCD** indicates a somewhat cheap valuation: **MCD** is cheaper than 62.69% of the companies listed in the same industry.

With a **Price/Forward Earnings** ratio of **21.67**, **MCD** is valued on the expensive side.

The rest of the industry has a similar **Price/Forward Earnings** ratio as **MCD**.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 22.78 | ||

Fwd PE | 21.67 |

Based on the **Enterprise Value to EBITDA** ratio, **MCD** is valued a bit more expensive than the industry average as 64.93% of the companies are valued more cheaply.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 27.03 | ||

EV/EBITDA | 16.91 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PEG (NY)4.46

PEG (5Y)2.6

EPS Next 2Y7.07%

EPS Next 3Y7.78%

Compared to an average S&P500 **Dividend Yield** of **2.45**, **MCD** has a dividend comparable with the average S&P500 company.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.47% |

The dividend of **MCD** is nicely growing with an annual growth rate of **8.37%**!

Dividend Growth(5Y)8.37%

Div Incr Years19

Div Non Decr Years19

DP53.52%

EPS Next 2Y7.07%

EPS Next 3Y7.78%

**MCDONALD'S CORP**

NYSE:MCD (4/19/2024, 7:04:00 PM)

After market: 271.7 -0.29 (-0.11%)**271.99**

**+1.01 (+0.37%) **

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Services

GICS IndustryHotels, Restaurants & Leisure

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap196.10B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.47% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 22.78 | ||

Fwd PE | 21.67 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)4.46

PEG (5Y)2.6

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 15.08% | ||

ROE | N/A | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 46.07% | ||

PM (TTM) | 33.22% | ||

GM | 57.12% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.45

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | N/A | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.16 | ||

Quick Ratio | 1.16 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)18.22%

EPS 3Y25.43%

EPS 5Y

EPS growth Q2Q

EPS Next Y5.11%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)9.97%

Revenue growth 3Y9.9%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y