McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. More Details
Established dividend payer with questionable track record.
Share Price & News
How has McDonald's's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MCD's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MCD underperformed the US Hospitality industry which returned 94.6% over the past year.
Return vs Market: MCD underperformed the US Market which returned 55.3% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is McDonald's's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StRead This Before Buying McDonald's Corporation (NYSE:MCD) For Its Dividend
1 month ago | Simply Wall StDid You Participate In Any Of McDonald's' (NYSE:MCD) Respectable 94% Return?
1 month ago | Simply Wall StShould Income Investors Look At McDonald's Corporation (NYSE:MCD) Before Its Ex-Dividend?
Is McDonald's undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCD ($230.25) is trading above our estimate of fair value ($164.49)
Significantly Below Fair Value: MCD is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCD is good value based on its PE Ratio (36.2x) compared to the US Hospitality industry average (41.1x).
PE vs Market: MCD is poor value based on its PE Ratio (36.2x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: MCD is poor value based on its PEG Ratio (2.9x)
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.
How is McDonald's forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCD's forecast earnings growth (12.4% per year) is above the savings rate (2%).
Earnings vs Market: MCD's earnings (12.4% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: MCD's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCD's revenue (7.4% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: MCD's revenue (7.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MCD's Return on Equity is forecast to be high in 3 years time
How has McDonald's performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCD has high quality earnings.
Growing Profit Margin: MCD's current net profit margins (24.6%) are lower than last year (28.2%).
Past Earnings Growth Analysis
Earnings Trend: MCD's earnings have grown by 2.9% per year over the past 5 years.
Accelerating Growth: MCD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MCD had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Hospitality industry average (-25.5%).
Return on Equity
High ROE: MCD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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 not well covered by operating cash flow (16.7%).
Interest Coverage: MCD's interest payments on its debt are well covered by EBIT (5.9x coverage).
What is McDonald's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCD's dividend (2.24%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: MCD's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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: At its current payout ratio (79.3%), MCD's 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 (57.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Kempczinski (51 yo)
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. Mr. Kempczinski served as President of US...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD5.23M) is below average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Experienced Management: MCD's management team is considered experienced (4.5 years average tenure).
Experienced Board: MCD's board of directors are considered experienced (6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
McDonald's Corporation's company bio, employee growth, exchange listings and data sources
- Name: McDonald's Corporation
- Ticker: MCD
- Exchange: NYSE
- Founded: 1940
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$171.789b
- Shares outstanding: 746.10m
- Website: https://corporate.mcdonalds.com
Number of Employees
- McDonald's Corporation
- 110 North Carpenter Street
- United States
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 D...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/09 22:13|
|End of Day Share Price||2021/04/09 00:00|
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.