| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
MCD Stock Overview
McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally.
McDonald's Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$245.04 |
| 52 Week High | US$271.15 |
| 52 Week Low | US$217.68 |
| Beta | 0.57 |
| 1 Month Change | -2.18% |
| 3 Month Change | -3.30% |
| 1 Year Change | 5.75% |
| 3 Year Change | 23.00% |
| 5 Year Change | 65.40% |
| Change since IPO | 2,710.50% |
Recent News & Updates
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.
McDonald's: Dividend Metrics Point To Further Growth
McDonald's shares once more are battling to stay above the 200-day moving average. The restaurant chain beat earnings and sales estimates in the first quarter. Earnings and cash flow trends suggest dividend growth will continue.
Shareholder Returns
| MCD | US Hospitality | US Market | |
|---|---|---|---|
| 7D | -2.3% | -5.3% | -2.5% |
| 1Y | 5.7% | -22.2% | -10.4% |
Return vs Industry: MCD exceeded the US Hospitality industry which returned -22.2% over the past year.
Return vs Market: MCD exceeded the US Market which returned -10.4% over the past year.
Price Volatility
| MCD volatility | |
|---|---|
| MCD Average Weekly Movement | 3.3% |
| Hospitality Industry Average Movement | 9.1% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1940 | 100,000 | Chris Kempczinski | https://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
| MCD fundamental statistics | |
|---|---|
| Market Cap | US$181.22b |
| Earnings (TTM) | US$7.11b |
| Revenue (TTM) | US$23.76b |
25.5x
P/E Ratio7.6x
P/S RatioIs MCD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MCD income statement (TTM) | |
|---|---|
| Revenue | US$23.76b |
| Cost of Revenue | US$10.80b |
| Gross Profit | US$12.96b |
| Other Expenses | US$5.85b |
| Earnings | US$7.11b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 9.62 |
| Gross Margin | 54.54% |
| Net Profit Margin | 29.93% |
| Debt/Equity Ratio | -568.0% |
How did MCD perform over the long term?
See historical performance and comparisonDividends
2.3%
Current Dividend Yield56%
Payout RatioValuation
Is McDonald's undervalued compared to its fair value and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
25.48x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCD ($245.04) is trading above our estimate of fair value ($239.36)
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 (17.7x).
PE vs Market: MCD is poor value based on its PE Ratio (25.5x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: MCD is poor value based on its PEG Ratio (3.1x)
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
2/6Future 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 (12.6% 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 (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
4/6Past 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
2/6Financial 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
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.25%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCD's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: MCD's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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.
Next Steps
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$181.219b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.