MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
FRA:MDO - Deutsche Boerse Ag - US5801351017 - Common Stock - Currency: EUR
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Hotels, Restaurants & Leisure industry. While MDO has a great profitability rating, 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
In the past year MDO was profitable.
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 14.49%, MDO belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.02%, MDO belongs to the top of the industry, outperforming 91.38% 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 10.82%.
| 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
MDO has a Profit Margin of 31.75%. This is amongst the best in the industry. MDO outperforms 98.28% of its industry peers.
MDO's Profit Margin has improved in the last couple of years.
MDO's Operating Margin of 45.86% is amongst the best of the industry. MDO outperforms 96.55% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 56.83%, MDO is in line with its industry, outperforming 58.62% of the companies in the same industry.
MDO'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MDO is creating value.
Compared to 1 year ago, MDO has less shares outstanding
MDO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MDO has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.04 indicates that MDO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.04, MDO belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
The Debt to FCF ratio of MDO is 5.80, which is a neutral value as it means it would take MDO, 5.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MDO (5.80) is better than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 5.04 |
ROIC/WACC2.08
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MDO should not have too much problems paying its short term obligations.
MDO has a Current ratio of 1.18. This is in the better half of the industry: MDO outperforms 74.14% of its industry peers.
MDO has a Quick Ratio of 1.17. This is a normal value and indicates that MDO is financially healthy and should not expect problems in meeting its short term obligations.
MDO's Quick ratio of 1.17 is fine compared to the rest of the industry. MDO outperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for MDO have decreased by -2.58% in the last 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.
MDO shows a decrease in Revenue. In the last year, the revenue decreased by -0.22%.
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
MDO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.03% yearly.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y5.56%
EPS Next 2Y6.85%
EPS Next 3Y7.45%
EPS Next 5Y9.03%
Revenue Next Year1.78%
Revenue Next 2Y3.64%
Revenue Next 3Y4.42%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.07 indicates a quite expensive valuation of MDO.
Based on the Price/Earnings ratio, MDO is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.48, MDO is valued at the same level.
A Price/Forward Earnings ratio of 22.78 indicates a rather expensive valuation of MDO.
MDO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, MDO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 22.78 |
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.
MDO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.53 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MDO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MDO may justify a higher PE ratio.
PEG (NY)4.69
PEG (5Y)3.18
EPS Next 2Y6.85%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, MDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.94, MDO pays a bit more dividend than its industry peers.
MDO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
MDO pays out 60.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.41%
EPS Next 2Y6.85%
EPS Next 3Y7.45%
FRA:MDO (8/8/2025, 5:07:45 PM)
262
-1.45 (-0.55%)
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 Cap187.34B
Analysts72.86
Price Target293.77 (12.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend5.94
Dividend Growth(5Y)7.43%
DP60.41%
Div Incr Years6
Div Non Decr Years6
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)-0.96%
PT rev (3m)0.24%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 22.78 | ||
| P/S | 8.48 | ||
| P/FCF | 32.53 | ||
| P/OCF | 23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.5 |
EPS(TTM)10.05
EY3.84%
EPS(NY)11.5
Fwd EY4.39%
FCF(TTM)8.06
FCFY3.07%
OCF(TTM)11.39
OCFY4.35%
SpS30.88
BVpS-4.15
TBVpS-7.98
PEG (NY)4.69
PEG (5Y)3.18
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 | 5.04 |
F-Score5
WACC8.66%
ROIC/WACC2.08
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 Year1.78%
Revenue Next 2Y3.64%
Revenue Next 3Y4.42%
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%