MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
FRA:MDO - Deutsche Boerse Ag - US5801351017 - Common Stock - Currency: EUR
Overall MDO gets a fundamental rating of 6 out of 10. We evaluated MDO against 56 industry peers in the Hotels, Restaurants & Leisure industry. MDO has an excellent profitability rating, but there are some minor concerns on its financial health. MDO is quite expensive at the moment. It does show a decent growth rate.
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
MDO has a Return On Assets of 14.49%. This is amongst the best in the industry. MDO outperforms 91.07% of its industry peers.
With an excellent Return On Invested Capital value of 18.02%, MDO belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDO is significantly above the industry average of 11.15%.
| 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
The Profit Margin of MDO (31.75%) is better than 98.21% 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 98.21% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
MDO has a Gross Margin (56.83%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MDO has grown nicely.
| 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
MDO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MDO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MDO has less shares outstanding
Compared to 1 year ago, MDO has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.01 indicates that MDO is not in any danger for bankruptcy at the moment.
MDO has a better Altman-Z score (5.01) than 91.07% of its industry peers.
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.
MDO has a Debt to FCF ratio of 5.80. This is in the better half of the industry: MDO outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 5.01 |
ROIC/WACC2.26
WACC7.96%
2.3 Liquidity
MDO has a Current Ratio of 1.18. This is a normal value and indicates that MDO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, MDO is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
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.
The Quick ratio of MDO (1.17) is better than 75.00% 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.
The Revenue has decreased by -0.22% 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)-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
Based on estimates for the next years, MDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.57% on average per year.
The Revenue is expected to grow by 6.47% on average over the next years.
EPS Next Y5.81%
EPS Next 2Y7%
EPS Next 3Y7.81%
EPS Next 5Y11.57%
Revenue Next Year1.39%
Revenue Next 2Y3.41%
Revenue Next 3Y4.26%
Revenue Next 5Y6.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
MDO is valuated quite expensively with a Price/Earnings ratio of 25.32.
64.29% of the companies in the same industry are more expensive than MDO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.57, MDO is valued at the same level.
A Price/Forward Earnings ratio of 22.06 indicates a rather expensive valuation of MDO.
The rest of the industry has a similar Price/Forward Earnings ratio as MDO.
MDO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.06 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as MDO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 18.3 |
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)4.36
PEG (5Y)3.09
EPS Next 2Y7%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, MDO has a reasonable but not impressive dividend return.
MDO's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.40, MDO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
60.41% 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.
DP60.41%
EPS Next 2Y7%
EPS Next 3Y7.81%
FRA:MDO (6/16/2025, 7:00:00 PM)
257.3
-5.8 (-2.2%)
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 Cap183.98B
Analysts75.71
Price Target301.19 (17.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend5.88
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)-0.38%
PT rev (3m)-6.5%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.06 | ||
| P/S | 8.24 | ||
| P/FCF | 31.58 | ||
| P/OCF | 22.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.3 |
EPS(TTM)10.16
EY3.95%
EPS(NY)11.67
Fwd EY4.53%
FCF(TTM)8.15
FCFY3.17%
OCF(TTM)11.52
OCFY4.48%
SpS31.23
BVpS-4.2
TBVpS-8.07
PEG (NY)4.36
PEG (5Y)3.09
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 | 5.01 |
F-Score5
WACC7.96%
ROIC/WACC2.26
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 Y5.81%
EPS Next 2Y7%
EPS Next 3Y7.81%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
Revenue Next Year1.39%
Revenue Next 2Y3.41%
Revenue Next 3Y4.26%
Revenue Next 5Y6.48%
EBIT growth 1Y-0.13%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.21%
EBIT Next 3Y11.52%
EBIT Next 5Y11.96%
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%