MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
BIT:1MCD - Euronext Milan - US5801351017 - Common Stock - Currency: EUR
Overall 1MCD gets a fundamental rating of 6 out of 10. We evaluated 1MCD against 58 industry peers in the Hotels, Restaurants & Leisure industry. 1MCD has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1MCD is valued expensive at the moment.
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
1MCD has a Return On Assets of 14.49%. This is amongst the best in the industry. 1MCD outperforms 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.02%, 1MCD belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
1MCD had an Average Return On Invested Capital over the past 3 years of 18.38%. This is significantly above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | N/A | ||
| ROIC | 18.02% |
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
1MCD has a Profit Margin of 31.75%. This is amongst the best in the industry. 1MCD outperforms 100.00% of its industry peers.
1MCD's Profit Margin has improved in the last couple of years.
The Operating Margin of 1MCD (45.86%) is better than 98.28% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
1MCD's Gross Margin of 56.83% is in line compared to the rest of the industry. 1MCD outperforms 58.62% of its industry peers.
In the last couple of years the Gross Margin of 1MCD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.86% | ||
| PM (TTM) | 31.75% | ||
| GM | 56.83% |
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.
1MCD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1MCD has been reduced compared to 5 years ago.
1MCD has about the same debt/assets ratio as last year.
2.2 Solvency
1MCD has an Altman-Z score of 4.93. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
1MCD has a Altman-Z score of 4.93. This is amongst the best in the industry. 1MCD outperforms 91.38% of its industry peers.
The Debt to FCF ratio of 1MCD is 5.80, which is a neutral value as it means it would take 1MCD, 5.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.80, 1MCD is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 4.93 |
ROIC/WACC2.09
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1MCD should not have too much problems paying its short term obligations.
The Current ratio of 1MCD (1.18) is better than 77.59% of its industry peers.
1MCD has a Quick Ratio of 1.17. 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 Quick ratio of 1.17 is fine compared to the rest of the industry. 1MCD outperforms 77.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
1MCD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.58%.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
Looking at the last year, 1MCD shows a decrease in Revenue. The Revenue has decreased by -0.22% in the last year.
Measured over the past years, 1MCD shows a small growth in Revenue. The Revenue has been growing by 3.94% on average per year.
EPS 1Y (TTM)-2.58%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
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 9.59% on average per year.
The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y5.81%
EPS Next 2Y7%
EPS Next 3Y7.81%
EPS Next 5Y9.59%
Revenue Next Year1.36%
Revenue Next 2Y3.39%
Revenue Next 3Y4.22%
Revenue Next 5Y5.31%
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
A Price/Earnings ratio of 24.90 indicates a rather expensive valuation of 1MCD.
Based on the Price/Earnings ratio, 1MCD is valued a bit cheaper than the industry average as 63.79% 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.
1MCD is valuated rather expensively with a Price/Forward Earnings ratio of 21.69.
Based on the Price/Forward Earnings ratio, 1MCD is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA is on the same level as the industry average.
1MCD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.06 | ||
| EV/EBITDA | 17.7 |
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)4.28
PEG (5Y)3.04
EPS Next 2Y7%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.27%.
Compared to an average industry Dividend Yield of 3.15, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 60.41% of its income as dividend. This is not a sustainable payout ratio.
1MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.41%
EPS Next 2Y7%
EPS Next 3Y7.81%
BIT:1MCD (6/30/2025, 7:00:00 PM)
248.75
-36.75 (-12.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap177.86B
Analysts77.67
Price Target298.88 (20.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend5.97
Dividend Growth(5Y)7.43%
DP60.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.83%
Min EPS beat(2)-1.13%
Max EPS beat(2)-0.53%
EPS beat(4)0
Avg EPS beat(4)-1.51%
Min EPS beat(4)-4.24%
Max EPS beat(4)-0.14%
EPS beat(8)3
Avg EPS beat(8)1.71%
EPS beat(12)7
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)3.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-0.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)3.55%
PT rev (3m)-2.89%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 21.69 | ||
| P/S | 8.1 | ||
| P/FCF | 31.06 | ||
| P/OCF | 21.96 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.7 |
EPS(TTM)9.99
EY4.02%
EPS(NY)11.47
Fwd EY4.61%
FCF(TTM)8.01
FCFY3.22%
OCF(TTM)11.33
OCFY4.55%
SpS30.7
BVpS-4.13
TBVpS-7.93
PEG (NY)4.28
PEG (5Y)3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | N/A | ||
| ROCE | 22.53% | ||
| ROIC | 18.02% | ||
| ROICexc | 18.46% | ||
| ROICexgc | 19.69% | ||
| OM | 45.86% | ||
| PM (TTM) | 31.75% | ||
| GM | 56.83% | ||
| FCFM | 26.09% |
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%
ROICexcg growth 3Y2.6%
ROICexcg 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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 131.89% | ||
| Cap/Sales | 10.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.26% | ||
| Profit Quality | 82.17% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.93 |
F-Score5
WACC8.63%
ROIC/WACC2.09
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)-2.58%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-1.11%
EPS Next Y5.81%
EPS Next 2Y7%
EPS Next 3Y7.81%
EPS Next 5Y9.59%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
Revenue Next Year1.36%
Revenue Next 2Y3.39%
Revenue Next 3Y4.22%
Revenue Next 5Y5.31%
EBIT growth 1Y-0.13%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.21%
EBIT Next 3Y11.52%
EBIT Next 5Y10.24%
FCF growth 1Y18.21%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y23.6%
OCF growth 3Y1.11%
OCF growth 5Y3.07%