MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
268.5 EUR
+1.35 (+0.51%)
Taking everything into account, MDO scores 6 out of 10 in our fundamental rating. MDO was compared to 56 industry peers in the Hotels, Restaurants & Leisure industry. While MDO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, MDO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MDO had positive earnings in the past year.
In the past year MDO had a positive cash flow from operations.
MDO had positive earnings in each of the past 5 years.
In the past 5 years MDO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.88%, MDO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.77%, MDO belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MDO is significantly above the industry average of 11.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | N/A | ||
| ROIC | 17.77% |
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
The Profit Margin of MDO (32.04%) is better than 98.21% of its industry peers.
In the last couple of years the Profit Margin of MDO has grown nicely.
With an excellent Operating Margin value of 46.12%, MDO belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
In the last couple of years the Operating Margin of MDO has grown nicely.
Looking at the Gross Margin, with a value of 57.43%, MDO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
MDO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.12% | ||
| PM (TTM) | 32.04% | ||
| GM | 57.43% |
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
MDO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MDO has been reduced compared to 1 year ago.
The number of shares outstanding for MDO has been reduced compared to 5 years ago.
Compared to 1 year ago, MDO has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.81 indicates that MDO is not in any danger for bankruptcy at the moment.
MDO's Altman-Z score of 4.81 is amongst the best of the industry. MDO outperforms 92.86% of its industry peers.
MDO has a debt to FCF ratio of 5.60. This is a neutral value as MDO would need 5.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.60, MDO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.81 |
ROIC/WACC2.31
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.00 indicates that MDO should not have too much problems paying its short term obligations.
The Current ratio of MDO (1.00) is better than 64.29% of its industry peers.
A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
MDO has a Quick ratio of 0.99. This is in the better half of the industry: MDO outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
Measured over the past years, MDO 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 1.26% in the past year.
MDO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
EPS 1Y (TTM)0.51%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-0.31%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
3.2 Future
MDO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
MDO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
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
A Price/Earnings ratio of 26.04 indicates a quite expensive valuation of MDO.
MDO's Price/Earnings ratio is a bit cheaper when compared to the industry. MDO is cheaper than 60.71% of the companies in the same industry.
MDO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.11, the valuation of MDO can be described as rather expensive.
MDO's Price/Forward Earnings ratio is in line with the industry average.
MDO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 23.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 18.21 |
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 MDO may justify a higher PE ratio.
PEG (NY)4.63
PEG (5Y)3.18
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, MDO pays a bit more dividend than its industry peers.
MDO's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
On average, the dividend of MDO grows each year by 7.43%, which is quite nice.
Dividend Growth(5Y)7.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
60.13% of the earnings are spent on dividend by MDO. This is not a sustainable payout ratio.
The dividend of MDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
FRA:MDO (11/25/2025, 5:20:22 PM)
268.5
+1.35 (+0.51%)
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 Cap191.60B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts72.27
Price Target291.71 (8.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend5.88
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.88%
Min EPS beat(2)-4.16%
Max EPS beat(2)0.41%
EPS beat(4)1
Avg EPS beat(4)-1.35%
Min EPS beat(4)-4.16%
Max EPS beat(4)0.41%
EPS beat(8)2
Avg EPS beat(8)-0.99%
EPS beat(12)6
Avg EPS beat(12)2.17%
EPS beat(16)9
Avg EPS beat(16)1.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.04%
PT rev (1m)-1%
PT rev (3m)-1.88%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 23.11 | ||
| P/S | 8.43 | ||
| P/FCF | 30.01 | ||
| P/OCF | 21.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.21 |
EPS(TTM)10.31
EY3.84%
EPS(NY)11.62
Fwd EY4.33%
FCF(TTM)8.95
FCFY3.33%
OCF(TTM)12.72
OCFY4.74%
SpS31.86
BVpS-2.62
TBVpS-6.63
PEG (NY)4.63
PEG (5Y)3.18
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | N/A | ||
| ROCE | 22.22% | ||
| ROIC | 17.77% | ||
| ROICexc | 18.59% | ||
| ROICexgc | 19.85% | ||
| OM | 46.12% | ||
| PM (TTM) | 32.04% | ||
| GM | 57.43% | ||
| FCFM | 28.08% |
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)19.49%
ROCE(3y)23.04%
ROCE(5y)20.89%
ROICexgc growth 3Y2.6%
ROICexgc 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 143.06% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.39% | ||
| Profit Quality | 87.63% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 4.81 |
F-Score7
WACC7.69%
ROIC/WACC2.31
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.21%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-0.31%
EPS Next Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y9.88%
FCF growth 1Y2.48%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y12.47%
OCF growth 3Y1.11%
OCF growth 5Y3.07%
MCDONALD'S CORP / MDO.DE FAQ
What is the fundamental rating for MDO stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDO.DE.
What is the valuation status for MDO stock?
ChartMill assigns a valuation rating of 3 / 10 to MCDONALD'S CORP (MDO.DE). This can be considered as Overvalued.
How profitable is MCDONALD'S CORP (MDO.DE) stock?
MCDONALD'S CORP (MDO.DE) has a profitability rating of 8 / 10.
What is the valuation of MCDONALD'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (MDO.DE) is 26.04 and the Price/Book (PB) ratio is -102.32.
Is the dividend of MCDONALD'S CORP sustainable?
The dividend rating of MCDONALD'S CORP (MDO.DE) is 5 / 10 and the dividend payout ratio is 60.13%.