MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - BIT:1MCD - US5801351017 - Common Stock
257.2 EUR
+3.4 (+1.34%)
Overall 1MCD gets a fundamental rating of 6 out of 10. We evaluated 1MCD against 54 industry peers in the Hotels, Restaurants & Leisure industry. 1MCD has an excellent profitability rating, but there are some minor concerns on its financial health. 1MCD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1MCD had positive earnings in the past year.
1MCD had a positive operating cash flow in the past year.
1MCD had positive earnings in each of the past 5 years.
In the past 5 years 1MCD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 14.09%, 1MCD belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Invested Capital of 1MCD (17.40%) is better than 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCD is significantly above the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | N/A | ||
| ROIC | 17.4% |
ROA(3y)14.08%
ROA(5y)13.05%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.38%
ROIC(5y)16.68%
1.3 Margins
The Profit Margin of 1MCD (32.20%) is better than 98.21% of its industry peers.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
1MCD's Operating Margin of 46.13% is amongst the best of the industry. 1MCD outperforms 96.43% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
1MCD's Gross Margin of 57.00% is in line compared to the rest of the industry. 1MCD outperforms 53.57% of its industry peers.
In the last couple of years the Gross Margin of 1MCD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.13% | ||
| PM (TTM) | 32.2% | ||
| GM | 57% |
OM growth 3Y2.46%
OM growth 5Y1.77%
PM growth 3Y-0.79%
PM growth 5Y2.38%
GM growth 3Y1.56%
GM growth 5Y1.64%
2. Health
2.1 Basic Checks
1MCD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1MCD has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MCD has less shares outstanding
The debt/assets ratio for 1MCD has remained at the same level compared to a year ago.
2.2 Solvency
1MCD has an Altman-Z score of 4.83. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MCD (4.83) is better than 92.86% of its industry peers.
1MCD has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as 1MCD would need 6.00 years to pay back of all of its debts.
1MCD has a Debt to FCF ratio (6.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.83 |
ROIC/WACC2.25
WACC7.73%
2.3 Liquidity
1MCD has a Current Ratio of 1.30. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
1MCD's Current ratio of 1.30 is amongst the best of the industry. 1MCD outperforms 85.71% of its industry peers.
A Quick Ratio of 1.29 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a better Quick ratio (1.29) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
1MCD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
1MCD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
1MCD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.17%.
1MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
EPS 1Y (TTM)0.93%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%7.41%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
3.2 Future
Based on estimates for the next years, 1MCD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
1MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y5.79%
EPS Next 2Y7.04%
EPS Next 3Y7.53%
EPS Next 5Y9.23%
Revenue Next Year2.84%
Revenue Next 2Y4.21%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1MCD is valuated rather expensively with a Price/Earnings ratio of 24.92.
62.50% of the companies in the same industry are more expensive than 1MCD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.34, 1MCD is valued at the same level.
1MCD is valuated rather expensively with a Price/Forward Earnings ratio of 22.11.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MCD.
1MCD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 22.11 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1MCD is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.74 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MCD does not grow enough to justify the current Price/Earnings ratio.
1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.3
PEG (5Y)3.04
EPS Next 2Y7.04%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.46%.
Compared to an average industry Dividend Yield of 3.14, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of 1MCD grows each year by 7.43%, which is quite nice.
Dividend Growth(5Y)7.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
59.52% of the earnings are spent on dividend by 1MCD. This is a bit on the high side, but may be sustainable.
1MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.52%
EPS Next 2Y7.04%
EPS Next 3Y7.53%
BIT:1MCD (11/10/2025, 7:00:00 PM)
257.2
+3.4 (+1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.98%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap183.54B
Revenue(TTM)26.06B
Net Income(TTM)8.39B
Analysts72.38
Price Target295.81 (15.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend5.86
Dividend Growth(5Y)7.43%
DP59.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.06%
Min EPS beat(2)-0.53%
Max EPS beat(2)0.41%
EPS beat(4)1
Avg EPS beat(4)-0.35%
Min EPS beat(4)-1.13%
Max EPS beat(4)0.41%
EPS beat(8)3
Avg EPS beat(8)0.17%
EPS beat(12)7
Avg EPS beat(12)2.76%
EPS beat(16)10
Avg EPS beat(16)2.82%
Revenue beat(2)1
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.15%
PT rev (1m)0.54%
PT rev (3m)-0.41%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 22.11 | ||
| P/S | 8.14 | ||
| P/FCF | 30.74 | ||
| P/OCF | 21.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.08 |
EPS(TTM)10.32
EY4.01%
EPS(NY)11.63
Fwd EY4.52%
FCF(TTM)8.37
FCFY3.25%
OCF(TTM)11.88
OCFY4.62%
SpS31.61
BVpS-3.35
TBVpS-7.36
PEG (NY)4.3
PEG (5Y)3.04
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | N/A | ||
| ROCE | 21.76% | ||
| ROIC | 17.4% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 19.2% | ||
| OM | 46.13% | ||
| PM (TTM) | 32.2% | ||
| GM | 57% | ||
| FCFM | 26.47% |
ROA(3y)14.08%
ROA(5y)13.05%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.38%
ROIC(5y)16.68%
ROICexc(3y)19.5%
ROICexc(5y)17.88%
ROICexgc(3y)21.29%
ROICexgc(5y)19.5%
ROCE(3y)23.04%
ROCE(5y)20.89%
ROICexgc growth 3Y2.6%
ROICexgc growth 5Y2.93%
ROICexc growth 3Y2.55%
ROICexc growth 5Y2.53%
OM growth 3Y2.46%
OM growth 5Y1.77%
PM growth 3Y-0.79%
PM growth 5Y2.38%
GM growth 3Y1.56%
GM growth 5Y1.64%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 134.76% | ||
| Cap/Sales | 11.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.11% | ||
| Profit Quality | 82.2% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.83 |
F-Score7
WACC7.73%
ROIC/WACC2.25
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.22%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0.93%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%7.41%
EPS Next Y5.79%
EPS Next 2Y7.04%
EPS Next 3Y7.53%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year2.84%
Revenue Next 2Y4.21%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y10.03%
FCF growth 1Y3.89%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y12.2%
OCF growth 3Y1.11%
OCF growth 5Y3.07%
MCDONALD'S CORP / 1MCD.MI FAQ
What is the fundamental rating for 1MCD stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MCD.MI.
What is the valuation status of MCDONALD'S CORP (1MCD.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to MCDONALD'S CORP (1MCD.MI). This can be considered as Overvalued.
What is the profitability of 1MCD stock?
MCDONALD'S CORP (1MCD.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1MCD stock?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (1MCD.MI) is 24.92 and the Price/Book (PB) ratio is -76.83.
What is the expected EPS growth for MCDONALD'S CORP (1MCD.MI) stock?
The Earnings per Share (EPS) of MCDONALD'S CORP (1MCD.MI) is expected to grow by 5.79% in the next year.