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MCD

McDonald'sNYSE:MCD Stock Report

Market Cap

US$185.3b

7D

3.8%

1Y

12.6%

Updated

27 Sep, 2021

Data

Company Financials +
MCD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health2/6
Dividends5/6

MCD Overview

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally.

McDonald's Competitors

Price History & Performance

Summary of all time highs, changes and price drops for McDonald's
Historical stock prices
Current Share PriceUS$248.11
52 Week HighUS$202.73
52 Week LowUS$248.90
Beta0.63
1 Month Change4.48%
3 Month Change7.70%
1 Year Change12.64%
3 Year Change48.86%
5 Year Change116.43%
Change since IPO2,745.71%

Recent News & Updates

Sep 28
McDonald's' (NYSE:MCD) Upcoming Dividend Will Be Larger Than Last Year's

McDonald's' (NYSE:MCD) Upcoming Dividend Will Be Larger Than Last Year's

McDonald's Corporation ( NYSE:MCD ) has announced that it will be increasing its dividend on the 15th of December to...

Sep 19

McDonald's Growth In A Rebound Can Take It To New Highs

2020 proved to be a challenging year, and while some headwinds to foot traffic have remained, revenues and earnings are surging. Revenues are reaching a multi-year high, with strengths in digital channels and limited time/celeb orders. Rollout of the MyMcDonald's Rewards should attract millions of more users and drive digital channel sales, a long-term growth opportunity. Labor and supply chain issues have had some impacts on operations, but margins have expanded still.

Aug 17

Is McDonald's Stock Overvalued Or Undervalued?

MCD's shares are up +11.3% year-to-date which is decent on an absolute basis, but the stock has under-performed the major stock market indices this year. McDonald's appears to be fairly valued based on a comparison with its peers and trading history. McDonald's Corporation has a stellar dividend payment track record boasting 45 consecutive years of dividend increases, but the stock's forward dividend yields in the low single-digit are not very appealing. McDonald's stock is a Hold, as its current valuations are not particularly attractive and the company's growth momentum is likely to slow in the near term.

Shareholder Returns

MCDUS HospitalityUS Market
7D3.8%6.2%2.0%
1Y12.6%36.1%32.8%

Return vs Industry: MCD underperformed the US Hospitality industry which returned 36.1% over the past year.

Return vs Market: MCD underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is MCD's price volatile compared to industry and market?
MCD volatility
MCD Beta0.63
Industry Beta1.73
Market Beta1

Stable Share Price: MCD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MCD's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1940200,000Chris Kempczinskihttps://corporate.mcdonalds.com

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products and beverages, as well as breakfast menu. As of December 31, 2020, the company operated 39,198 restaurants.

McDonald's Fundamentals Summary

How do McDonald's's earnings and revenue compare to its market cap?
MCD fundamental statistics
Market CapUS$185.29b
Earnings (TTM)US$6.90b
Revenue (TTM)US$21.74b

26.9x

P/E Ratio

8.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCD income statement (TTM)
RevenueUS$21.74b
Cost of RevenueUS$10.17b
Gross ProfitUS$11.57b
ExpensesUS$4.68b
EarningsUS$6.90b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.23
Gross Margin53.22%
Net Profit Margin31.72%
Debt/Equity Ratio-609.9%

How did MCD perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

55%

Payout Ratio

Does MCD pay a reliable dividends?

See MCD dividend history and benchmarks
When do you need to buy MCD by to receive an upcoming dividend?
McDonald's dividend dates
Ex Dividend DateNov 30 2021
Dividend Pay DateDec 15 2021
Days until Ex dividend62 days
Days until Dividend pay date77 days

Does MCD pay a reliable dividends?

See MCD dividend history and benchmarks

Valuation

Is McDonald's undervalued compared to its fair value and its price relative to the market?

26.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCD ($248.11) is trading above our estimate of fair value ($218.2)

Significantly Below Fair Value: MCD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCD is poor value based on its PE Ratio (26.9x) compared to the US Hospitality industry average (25.7x).

PE vs Market: MCD is poor value based on its PE Ratio (26.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MCD is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: MCD has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Future Growth

How is McDonald's forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCD's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: MCD's earnings (4.1% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: MCD's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCD's revenue (5.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: MCD's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCD's Return on Equity is forecast to be very high in 3 years time (1480.7%).


Past Performance

How has McDonald's performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCD has high quality earnings.

Growing Profit Margin: MCD's current net profit margins (31.7%) are higher than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: MCD's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: MCD's earnings growth over the past year (44.6%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: MCD earnings growth over the past year (44.6%) underperformed the Hospitality industry 80.8%.


Return on Equity

High ROE: MCD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is McDonald's's financial position?


Financial Position Analysis

Short Term Liabilities: MCD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MCD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MCD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MCD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MCD's debt is well covered by operating cash flow (24.8%).

Interest Coverage: MCD's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Dividend

What is McDonald's current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 28 2021Ex Dividend DateNov 30 2021Dividend Pay DateDec 15 202115 days from Ex DividendBuy in the next 62 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: MCD's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: MCD's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: MCD's dividends per share have been stable in the past 10 years.

Growing Dividend: MCD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), MCD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCD's dividends in 3 years are forecast to be covered by earnings (56.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Chris Kempczinski (52 yo)

1.83yrs

Tenure

US$10,847,032

Compensation

Mr. Christopher J. Kempczinski, also known as Chris, has been the President, Chief Executive Officer and Director at McDonald's Corporation since November 1, 2019. He served as President of USA at McDonald...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD10.85M) is about average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MCD's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: MCD's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MCD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McDonald's Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: McDonald's Corporation
  • Ticker: MCD
  • Exchange: NYSE
  • Founded: 1940
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$185.288b
  • Shares outstanding: 746.80m
  • Website: https://corporate.mcdonalds.com

Number of Employees


Location

  • McDonald's Corporation
  • 110 North Carpenter Street
  • Chicago
  • Illinois
  • 60607
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:54
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.