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MCD

McDonald'sNYSE:MCD Stock Report

Market Cap

US$182.5b

7D

-3.2%

1Y

17.6%

Updated

02 Dec, 2021

Data

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

MCD Stock Overview

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

McDonald's Competitors

Chipotle Mexican Grill

NYSE:CMG

US$45.1b

Restaurant Brands International

NYSE:QSR

US$25.0b

Yum China Holdings

NYSE:YUMC

US$21.3b

Wendy's

NasdaqGS:WEN

US$4.5b

Price History & Performance

Summary of all time highs, changes and price drops for McDonald's
Historical stock prices
Current Share PriceUS$248.80
52 Week HighUS$257.79
52 Week LowUS$202.73
Beta0.58
1 Month Change-0.18%
3 Month Change4.18%
1 Year Change17.63%
3 Year Change34.16%
5 Year Change106.56%
Change since IPO2,753.62%

Recent News & Updates

Nov 25

McDonald's: Fundamentals Remain Strong But Current Valuation Isn't Cheap

Analyzing the current bullish outlook for Mcdonald's businesses in the US and abroad. Looking at future growth drivers for Mcdonald's. Talking about why Valuation levels are Reasonable but not Cheap.

Nov 14
Does McDonald's (NYSE:MCD) Deserve A Spot On Your Watchlist?

Does McDonald's (NYSE:MCD) Deserve A Spot On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Oct 30
The Dividend of McDonald's (NYSE:MCD) - Why we are Lovin' It.

The Dividend of McDonald's (NYSE:MCD) - Why we are Lovin' It.

It almost seemed like the market didn't trust in McDonald's Corporation (NYSE: MCD) before the Earnings report, yet the world's largest franchise network surprised, once again improving its bottom line.

Shareholder Returns

MCDUS HospitalityUS Market
7D-3.2%-6.7%-3.5%
1Y17.6%-0.8%19.4%

Return vs Industry: MCD exceeded the US Hospitality industry which returned -3.1% over the past year.

Return vs Market: MCD matched the US Market which returned 17.8% over the past year.

Price Volatility

Is MCD's price volatile compared to industry and market?
MCD volatility
MCD Average Weekly Movement2.1%
Hospitality Industry Average Movement6.8%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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$182.46b
Earnings (TTM)US$7.28b
Revenue (TTM)US$22.53b

25.5x

P/E Ratio

8.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCD income statement (TTM)
RevenueUS$22.53b
Cost of RevenueUS$10.43b
Gross ProfitUS$12.10b
ExpensesUS$4.82b
EarningsUS$7.28b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.75
Gross Margin53.71%
Net Profit Margin32.33%
Debt/Equity Ratio-619.0%

How did MCD perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

53%

Payout Ratio

Valuation

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

25.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCD ($248.8) is trading above our estimate of fair value ($232.31)

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 (25.5x) compared to the US Hospitality industry average (22.2x).

PE vs Market: MCD is poor value based on its PE Ratio (25.5x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: MCD is poor value based on its PEG Ratio (8.3x)


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 29 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCD's forecast earnings growth (3.1% per year) is above the savings rate (2%).

Earnings vs Market: MCD's earnings (3.1% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: MCD's revenue (5.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MCD's revenue (5.4% 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 (719.1%).


Past Performance

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

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCD has high quality earnings.

Growing Profit Margin: MCD's current net profit margins (32.3%) are higher than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: MCD's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: MCD's earnings growth over the past year (47.9%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: MCD earnings growth over the past year (47.9%) underperformed the Hospitality industry 79.7%.


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 (24.1%).

Interest Coverage: MCD's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCD's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: MCD's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 (52.9%), 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 (57.1% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Chris Kempczinski (52 yo)

2.08yrs

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 serves as an Independent Director at T...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD10.85M) is about average for companies of similar size in the US market ($USD11.11M).

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 (3.1 years average tenure).


Board Members

Experienced Board: MCD's board of directors are considered experienced (6.6 years average tenure).


Ownership

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

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$182.462b
  • Shares outstanding: 747.25m
  • 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 Analysis2021/12/02 23:31
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
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.