MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
263.85 EUR
+6.7 (+2.61%)
1MCD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Hotels, Restaurants & Leisure industry. While 1MCD has a great profitability rating, there are some minor concerns on its financial health. 1MCD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MCD was profitable.
1MCD had a positive operating cash flow in the past year.
Each year in the past 5 years 1MCD has been profitable.
1MCD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1MCD (13.88%) is better than 91.80% of its industry peers.
1MCD has a Return On Invested Capital of 17.77%. This is amongst the best in the industry. 1MCD outperforms 85.25% 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 12.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | N/A | ||
| ROIC | 17.77% |
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
Looking at the Profit Margin, with a value of 32.04%, 1MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MCD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.12%, 1MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MCD's Operating Margin has improved in the last couple of years.
1MCD's Gross Margin of 57.43% is fine compared to the rest of the industry. 1MCD outperforms 60.66% of its industry peers.
1MCD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.12% | ||
| PM (TTM) | 32.04% | ||
| GM | 57.43% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MCD 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
Compared to 1 year ago, 1MCD has about the same debt to assets ratio.
2.2 Solvency
1MCD has an Altman-Z score of 4.79. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.79, 1MCD belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
The Debt to FCF ratio of 1MCD is 5.60, which is a neutral value as it means it would take 1MCD, 5.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.60, 1MCD is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.79 |
ROIC/WACC2.28
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a Current ratio of 1.00. This is in the better half of the industry: 1MCD outperforms 60.66% of its industry peers.
A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
The Quick ratio of 1MCD (0.99) is better than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
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 1.26%.
1MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
EPS 1Y (TTM)0.51%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-0.31%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
3.2 Future
1MCD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.60% yearly.
Based on estimates for the next years, 1MCD will show a small growth in Revenue. The Revenue will grow by 5.51% on average per year.
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y9.6%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
Revenue Next 5Y5.51%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.89, which means the current valuation is very expensive for 1MCD.
Based on the Price/Earnings ratio, 1MCD is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.10, which indicates a rather expensive current valuation of 1MCD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1MCD to the average of the S&P500 Index (24.04), we can say 1MCD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MCD.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MCD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.79 | ||
| EV/EBITDA | 18.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.91
PEG (5Y)3.16
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, 1MCD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.29, 1MCD pays a bit more dividend than its industry peers.
1MCD's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of 1MCD is nicely growing with an annual growth rate of 7.43%!
Dividend Growth(5Y)7.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MCD pays out 60.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
BIT:1MCD (1/13/2026, 7:00:00 PM)
263.85
+6.7 (+2.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.96%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap187.90B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target292.03 (10.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5.82
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.88%
Min EPS beat(2)-4.16%
Max EPS beat(2)0.41%
EPS beat(4)1
Avg EPS beat(4)-1.35%
Min EPS beat(4)-4.16%
Max EPS beat(4)0.41%
EPS beat(8)2
Avg EPS beat(8)-0.99%
EPS beat(12)6
Avg EPS beat(12)2.17%
EPS beat(16)9
Avg EPS beat(16)1.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.04%
PT rev (1m)0.19%
PT rev (3m)-0.31%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.1 | ||
| P/S | 8.36 | ||
| P/FCF | 29.79 | ||
| P/OCF | 20.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.03 |
EPS(TTM)10.19
EY3.86%
EPS(NY)11.42
Fwd EY4.33%
FCF(TTM)8.86
FCFY3.36%
OCF(TTM)12.59
OCFY4.77%
SpS31.54
BVpS-2.6
TBVpS-6.57
PEG (NY)5.91
PEG (5Y)3.16
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | N/A | ||
| ROCE | 22.22% | ||
| ROIC | 17.77% | ||
| ROICexc | 18.59% | ||
| ROICexgc | 19.85% | ||
| OM | 46.12% | ||
| PM (TTM) | 32.04% | ||
| GM | 57.43% | ||
| FCFM | 28.08% |
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)19.49%
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 143.06% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.39% | ||
| Profit Quality | 87.63% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 4.79 |
F-Score7
WACC7.79%
ROIC/WACC2.28
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.21%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-0.31%
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y9.6%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
Revenue Next 5Y5.51%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.71%
EBIT Next 3Y11.38%
EBIT Next 5Y10.59%
FCF growth 1Y2.48%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y12.47%
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 for 1MCD stock?
ChartMill assigns a valuation rating of 3 / 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.
What is the valuation of MCDONALD'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (1MCD.MI) is 25.89 and the Price/Book (PB) ratio is -101.57.
What is the earnings growth outlook for MCDONALD'S CORP?
The Earnings per Share (EPS) of MCDONALD'S CORP (1MCD.MI) is expected to grow by 4.38% in the next year.