company background image

McDonald'sNYSE:MCD Stock Report

Market Cap







25 Sep, 2021


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

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$246.42
52 Week HighUS$202.73
52 Week LowUS$247.38
1 Month Change4.00%
3 Month Change6.02%
1 Year Change12.94%
3 Year Change47.30%
5 Year Change113.61%
Change since IPO2,726.32%

Recent News & Updates

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.

Aug 06

Is McDonald's Stock A Buy Or Sell After Q2 Earnings? What To Consider

With 65% of global stores providing drive-thru service and 75% of stores offering home delivery, McDonald’s is adapting to evolving customer preferences. Technological investments and the debut of MyMcDonald’s rewards program could boost profits. Quarterly earnings smashed estimates with double-digit comparable sales growth in the U.S. Even so, the shares fell as management warned of supply chain issues and wage inflation.

Shareholder Returns

MCDUS HospitalityUS Market

Return vs Industry: MCD underperformed the US Hospitality industry which returned 38.5% over the past year.

Return vs Market: MCD underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is MCD's price volatile compared to industry and market?
MCD volatility
MCD Beta0.63
Industry Beta1.72
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

1940200,000Chris Kempczinski

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$184.03b
Earnings (TTM)US$6.90b
Revenue (TTM)US$21.74b


P/E Ratio


P/S Ratio

Earnings & Revenue

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

Last Reported Earnings

Jun 30, 2021

Next Earnings Date


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



Current Dividend Yield


Payout Ratio


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 ($246.42) is trading above our estimate of fair value ($217.99)

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 (26.7x) compared to the US Hospitality industry average (25x).

PE vs Market: MCD is poor value based on its PE Ratio (26.7x) compared to the US market (17.9x).

Price to Earnings Growth Ratio

PEG Ratio: MCD is poor value based on its PEG Ratio (6.6x)

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 31 analysts?


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 (14.8% 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?


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


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 (1.33%).

High Dividend: MCD's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (3.6%).

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


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


Average management tenure


Chris Kempczinski (52 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. He served as President of USA at McDonald...

CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD10.85M) is about average for companies of similar size in the US market ($USD11.36M).

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).


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$184.026b
  • Shares outstanding: 746.80m
  • Website:

Number of Employees


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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:13
End of Day Share Price2021/09/24 00:00
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.