MCDONALD'S CORP (1MCD.MI) Fundamental Analysis & Valuation

BIT:1MCD • US5801351017

Current stock price

288.75 EUR
+11.3 (+4.07%)
Last:

This 1MCD.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. 1MCD.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1MCD was profitable.
  • In the past year 1MCD had a positive cash flow from operations.
  • In the past 5 years 1MCD has always been profitable.
  • Each year in the past 5 years 1MCD had a positive operating cash flow.
1MCD.MI Yearly Net Income VS EBIT VS OCF VS FCF1MCD.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 14.39%, 1MCD belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
  • 1MCD has a better Return On Invested Capital (17.76%) than 84.48% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1MCD is significantly above the industry average of 12.12%.
Industry RankSector Rank
ROA 14.39%
ROE N/A
ROIC 17.76%
ROA(3y)14.79%
ROA(5y)14.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.24%
ROIC(5y)17.58%
1MCD.MI Yearly ROA, ROE, ROIC1MCD.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100 -200 -300 -400

1.3 Margins

  • 1MCD has a Profit Margin of 31.85%. This is amongst the best in the industry. 1MCD outperforms 96.55% of its industry peers.
  • 1MCD's Profit Margin has improved in the last couple of years.
  • 1MCD has a Operating Margin of 46.11%. This is amongst the best in the industry. 1MCD outperforms 96.55% of its industry peers.
  • In the last couple of years the Operating Margin of 1MCD has grown nicely.
  • Looking at the Gross Margin, with a value of 57.41%, 1MCD is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
  • 1MCD's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 46.11%
PM (TTM) 31.85%
GM 57.41%
OM growth 3Y1.1%
OM growth 5Y4.21%
PM growth 3Y6.13%
PM growth 5Y5.28%
GM growth 3Y0.26%
GM growth 5Y2.49%
1MCD.MI Yearly Profit, Operating, Gross Margins1MCD.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. 1MCD.MI Health Analysis

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.
  • 1MCD has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for 1MCD has been reduced compared to a year ago.
1MCD.MI Yearly Shares Outstanding1MCD.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
1MCD.MI Yearly Total Debt VS Total Assets1MCD.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • 1MCD has a debt to FCF ratio of 5.56. This is a neutral value as 1MCD would need 5.56 years to pay back of all of its debts.
  • 1MCD has a Debt to FCF ratio of 5.56. This is comparable to the rest of the industry: 1MCD outperforms 58.62% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Altman-Z N/A
ROIC/WACC2.19
WACC8.11%
1MCD.MI Yearly LT Debt VS Equity VS FCF1MCD.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 0.95 indicates that 1MCD may have some problems paying its short term obligations.
  • 1MCD's Current ratio of 0.95 is in line compared to the rest of the industry. 1MCD outperforms 51.72% of its industry peers.
  • 1MCD has a Quick Ratio of 0.95. This is a bad value and indicates that 1MCD is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of 1MCD (0.95) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.95
1MCD.MI Yearly Current Assets VS Current Liabilites1MCD.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. 1MCD.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.01% 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 15.06% yearly.
  • 1MCD shows a small growth in Revenue. In the last year, the Revenue has grown by 3.73%.
  • The Revenue has been growing slightly by 6.96% on average over the past years.
EPS 1Y (TTM)4.01%
EPS 3Y6.5%
EPS 5Y15.06%
EPS Q2Q%10.25%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y5.06%
Revenue growth 5Y6.96%
Sales Q2Q%9.72%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
  • Based on estimates for the next years, 1MCD will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y9.8%
EPS Next 2Y9.23%
EPS Next 3Y9.51%
EPS Next 5Y9.01%
Revenue Next Year8.04%
Revenue Next 2Y6.88%
Revenue Next 3Y6.07%
Revenue Next 5Y4.56%

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 decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
1MCD.MI Yearly Revenue VS Estimates1MCD.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B
1MCD.MI Yearly EPS VS Estimates1MCD.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20 25

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2

4. 1MCD.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 27.32, 1MCD can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1MCD is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, 1MCD is valued at the same level.
  • With a Price/Forward Earnings ratio of 24.89, 1MCD is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1MCD.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, 1MCD is valued at the same level.
Industry RankSector Rank
PE 27.32
Fwd PE 24.89
1MCD.MI Price Earnings VS Forward Price Earnings1MCD.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, 1MCD is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 33.05
EV/EBITDA N/A
1MCD.MI Per share data1MCD.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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.
  • The excellent profitability rating of 1MCD may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.81
EPS Next 2Y9.23%
EPS Next 3Y9.51%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. 1MCD.MI Dividend Analysis

5.1 Amount

  • 1MCD has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
  • 1MCD's Dividend Yield is a higher than the industry average which is at 1.41.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1MCD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.3%

5.2 History

  • On average, the dividend of 1MCD grows each year by 7.33%, which is quite nice.
Dividend Growth(5Y)7.33%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 1MCD pays out 59.73% of its income as dividend. 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.
DP59.73%
EPS Next 2Y9.23%
EPS Next 3Y9.51%
1MCD.MI Yearly Income VS Free CF VS Dividend1MCD.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
1MCD.MI Dividend Payout.1MCD.MI Dividend Payout, showing the Payout Ratio.1MCD.MI Dividend Payout.PayoutRetained Earnings

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1MCD.MI Fundamentals: All Metrics, Ratios and Statistics

MCDONALD'S CORP

BIT:1MCD (3/2/2026, 7:00:00 PM)

288.75

+11.3 (+4.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners75.45%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap205.13B
Revenue(TTM)26.89B
Net Income(TTM)8.56B
Analysts74.42
Price Target294.54 (2.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.3%
Yearly Dividend6.25
Dividend Growth(5Y)7.33%
DP59.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-4.16%
Max EPS beat(2)1.44%
EPS beat(4)2
Avg EPS beat(4)-0.71%
Min EPS beat(4)-4.16%
Max EPS beat(4)1.44%
EPS beat(8)2
Avg EPS beat(8)-1.24%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)10
Avg EPS beat(16)2.3%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)1.46%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.46%
Revenue beat(8)2
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.11%
Revenue beat(16)8
Avg Revenue beat(16)0.13%
PT rev (1m)0.73%
PT rev (3m)1.05%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.11%
Valuation
Industry RankSector Rank
PE 27.32
Fwd PE 24.89
P/S 8.83
P/FCF 33.05
P/OCF 22.51
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)10.57
EY3.66%
EPS(NY)11.6
Fwd EY4.02%
FCF(TTM)8.74
FCFY3.03%
OCF(TTM)12.83
OCFY4.44%
SpS32.7
BVpS-2.18
TBVpS-2.18
PEG (NY)2.79
PEG (5Y)1.81
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 14.39%
ROE N/A
ROCE 22.48%
ROIC 17.76%
ROICexc 18.02%
ROICexgc 18.02%
OM 46.11%
PM (TTM) 31.85%
GM 57.41%
FCFM 26.72%
ROA(3y)14.79%
ROA(5y)14.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.24%
ROIC(5y)17.58%
ROICexc(3y)19.09%
ROICexc(5y)18.62%
ROICexgc(3y)20.28%
ROICexgc(5y)19.98%
ROCE(3y)23.13%
ROCE(5y)22.28%
ROICexgc growth 3Y-3.89%
ROICexgc growth 5Y4.57%
ROICexc growth 3Y-0.99%
ROICexc growth 5Y6.34%
OM growth 3Y1.1%
OM growth 5Y4.21%
PM growth 3Y6.13%
PM growth 5Y5.28%
GM growth 3Y0.26%
GM growth 5Y2.49%
F-Score6
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 12.52%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 83.91%
Current Ratio 0.95
Quick Ratio 0.95
Altman-Z N/A
F-Score6
WACC8.11%
ROIC/WACC2.19
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)10.82%
Cap/Sales(5y)9.89%
Profit Quality(3y)83.57%
Profit Quality(5y)86.73%
High Growth Momentum
Growth
EPS 1Y (TTM)4.01%
EPS 3Y6.5%
EPS 5Y15.06%
EPS Q2Q%10.25%
EPS Next Y9.8%
EPS Next 2Y9.23%
EPS Next 3Y9.51%
EPS Next 5Y9.01%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y5.06%
Revenue growth 5Y6.96%
Sales Q2Q%9.72%
Revenue Next Year8.04%
Revenue Next 2Y6.88%
Revenue Next 3Y6.07%
Revenue Next 5Y4.56%
EBIT growth 1Y4.59%
EBIT growth 3Y6.22%
EBIT growth 5Y11.46%
EBIT Next Year26.97%
EBIT Next 3Y12.73%
EBIT Next 5Y9.6%
FCF growth 1Y7.67%
FCF growth 3Y9.4%
FCF growth 5Y9.21%
OCF growth 1Y11.66%
OCF growth 3Y12.62%
OCF growth 5Y10.98%

MCDONALD'S CORP / 1MCD.MI Fundamental Analysis FAQ

What is the fundamental rating for 1MCD stock?

ChartMill assigns a fundamental rating of 5 / 10 to 1MCD.MI.


What is the valuation status for 1MCD 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.


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 27.32 and the Price/Book (PB) ratio is -132.58.


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 9.8% in the next year.