MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - FRA:MDO - US5801351017 - Common Stock
264.2 EUR
-0.45 (-0.17%)
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 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. MDO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MDO was profitable.
MDO had a positive operating cash flow in the past year.
Each year in the past 5 years MDO has been profitable.
MDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDO has a Return On Assets of 14.09%. This is amongst the best in the industry. MDO outperforms 92.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.40%, MDO belongs to the top of the industry, outperforming 89.09% 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 11.28%.
| 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
The Profit Margin of MDO (32.20%) is better than 98.18% of its industry peers.
MDO's Profit Margin has improved in the last couple of years.
MDO has a better Operating Margin (46.13%) than 98.18% of its industry peers.
In the last couple of years the Operating Margin of MDO has grown nicely.
Looking at the Gross Margin, with a value of 57.00%, MDO is in line with its industry, outperforming 52.73% of the companies in the same industry.
In the last couple of years the Gross Margin of MDO has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MDO is creating value.
MDO has less shares outstanding than it did 1 year ago.
MDO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MDO has about the same debt to assets ratio.
2.2 Solvency
MDO has an Altman-Z score of 4.85. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.85, MDO belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
MDO has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as MDO 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, MDO is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.85 |
ROIC/WACC2.28
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.30 indicates that MDO should not have too much problems paying its short term obligations.
MDO has a better Current ratio (1.30) than 81.82% of its industry peers.
A Quick Ratio of 1.29 indicates that MDO should not have too much problems paying its short term obligations.
MDO has a better Quick ratio (1.29) than 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
MDO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
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 1.17% in the past year.
Measured over the past years, MDO shows a small growth in Revenue. The Revenue has been growing by 3.94% on average per year.
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
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.
The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y6.33%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
EPS Next 5Y9.23%
Revenue Next Year2.95%
Revenue Next 2Y4.22%
Revenue Next 3Y4.64%
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.
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
With a Price/Earnings ratio of 25.70, MDO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MDO is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.67, MDO is valued at the same level.
With a Price/Forward Earnings ratio of 22.63, MDO is valued on the expensive side.
MDO's Price/Forward Earnings is on the same level as the industry average.
MDO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 22.63 |
4.2 Price Multiples
MDO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MDO is valued a bit more expensive than the industry average as 61.82% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.69 | ||
| EV/EBITDA | 18.24 |
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.
MDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.06
PEG (5Y)3.13
EPS Next 2Y7.41%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.32%.
MDO's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to an average S&P500 Dividend Yield of 2.35, MDO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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
59.52% of the earnings are spent on dividend by MDO. This is a bit on the high side, but may be sustainable.
The dividend of MDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.52%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
FRA:MDO (10/24/2025, 12:29:09 PM)
264.2
-0.45 (-0.17%)
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 Cap188.53B
Revenue(TTM)26.06B
Net Income(TTM)8.39B
Analysts72.38
Price Target294.64 (11.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend5.8
Dividend Growth(5Y)7.43%
DP59.52%
Div Incr Years6
Div Non Decr Years6
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)0.6%
PT rev (3m)0.3%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 22.63 | ||
| P/S | 8.39 | ||
| P/FCF | 31.69 | ||
| P/OCF | 22.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.24 |
EPS(TTM)10.28
EY3.89%
EPS(NY)11.67
Fwd EY4.42%
FCF(TTM)8.34
FCFY3.16%
OCF(TTM)11.84
OCFY4.48%
SpS31.5
BVpS-3.34
TBVpS-7.33
PEG (NY)4.06
PEG (5Y)3.13
Graham NumberN/A
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%
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 Turnover0.44
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 | 4.85 |
F-Score7
WACC7.62%
ROIC/WACC2.28
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 Y6.33%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year2.95%
Revenue Next 2Y4.22%
Revenue Next 3Y4.64%
Revenue Next 5Y5.06%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y10.03%
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%