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MCD

McDonald's NYSE:MCD Stock Report

Last Price

US$229.00

Market Cap

US$170.9b

7D

-6.2%

1Y

-1.4%

Updated

19 May, 2022

Data

Company Financials +
MCD fundamental analysis
Snowflake Score
Valuation1/6
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

Price History & Performance

Summary of all time highs, changes and price drops for McDonald's
Historical stock prices
Current Share PriceUS$229.00
52 Week HighUS$271.15
52 Week LowUS$217.68
Beta0.57
1 Month Change-10.34%
3 Month Change-8.62%
1 Year Change-1.37%
3 Year Change15.09%
5 Year Change52.89%
Change since IPO2,526.52%

Recent News & Updates

May 16

McDonald's: Solid Business Regardless Of Russian Exposure

In Q1, global comparable sales increased by 12%. Due to reserves set aside for an international tax matter and McDonald's exposure to Russia diluted EPS declined by about 28% to $1.48. Quarterly cash dividend of $1.38 per share. Wait until the uncertainty related to Russia and Ukraine improves. Appears overvalued compared to its sector and its growth potential.

Shareholder Returns

MCDUS HospitalityUS Market
7D-6.2%1.1%0.1%
1Y-1.4%-25.0%-12.7%

Return vs Industry: MCD exceeded the US Hospitality industry which returned -25.1% over the past year.

Return vs Market: MCD exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is MCD's price volatile compared to industry and market?
MCD volatility
MCD Average Weekly Movement3.5%
Hospitality Industry Average Movement9.2%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: MCD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MCD's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1940100,000Chris Kempczinskihttps://corporate.mcdonalds.com

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes, and other sandwiches. As of December 31, 2021, the company operated 40,031 restaurants.

McDonald's Fundamentals Summary

How do McDonald's's earnings and revenue compare to its market cap?
MCD fundamental statistics
Market CapUS$170.87b
Earnings (TTM)US$7.11b
Revenue (TTM)US$23.76b

23.8x

P/E Ratio

7.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCD income statement (TTM)
RevenueUS$23.76b
Cost of RevenueUS$10.80b
Gross ProfitUS$12.96b
Other ExpensesUS$5.85b
EarningsUS$7.11b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.62
Gross Margin54.54%
Net Profit Margin29.93%
Debt/Equity Ratio-568.0%

How did MCD perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

56%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


3.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MCD ($229) is trading below our estimate of fair value ($237.88)

Significantly Below Fair Value: MCD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MCD is poor value based on its PE Ratio (23.8x) compared to the US Hospitality industry average (17.2x).

PE vs Market: MCD is poor value based on its PE Ratio (23.8x) compared to the US market (15.5x).


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.


Future Growth

How is McDonald's forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCD's forecast earnings growth (8.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MCD's earnings (8.2% per year) are forecast to grow slower than the US market (12.4% per year).

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

Revenue vs Market: MCD's revenue (4.6% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: MCD's revenue (4.6% 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 (103.9%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MCD has high quality earnings.

Growing Profit Margin: MCD's current net profit margins (29.9%) are higher than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: MCD's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: MCD's earnings growth over the past year (37.8%) exceeds its 5-year average (5.5% per year).

Earnings vs Industry: MCD earnings growth over the past year (37.8%) underperformed the Hospitality industry 86.7%.


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 Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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 (26.9%).

Interest Coverage: MCD's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.41%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MCD's dividend (2.41%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MCD's dividend (2.41%) is low compared to the top 25% of dividend payers in the US market (4.07%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56%), MCD's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (57.7%), MCD's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure


CEO

Chris Kempczinski (52 yo)

2.5yrs

Tenure

US$20,028,132

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 ($USD20.03M) is above average for companies of similar size in the US market ($USD13.26M).

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 (2.5 years average tenure).


Board Members

Experienced Board: MCD's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MCD insiders have sold more shares than they have bought 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
  • Implied Market Cap: US$170.872b
  • Shares outstanding: 739.55m
  • 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 Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.