MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
261.6 EUR
-4.2 (-1.58%)
1MCD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1MCD had positive earnings in the past year.
In the past year 1MCD had a positive cash flow from operations.
In the past 5 years 1MCD has always been profitable.
In the past 5 years 1MCD always reported a positive cash flow from operatings.
1.2 Ratios
1MCD has a Return On Assets of 13.88%. This is amongst the best in the industry. 1MCD outperforms 90.91% of its industry peers.
1MCD has a better Return On Invested Capital (17.77%) than 83.64% of its industry peers.
1MCD had an Average Return On Invested Capital over the past 3 years of 18.38%. This is significantly above the industry average of 12.63%.
| 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
1MCD's Profit Margin of 32.04% is amongst the best of the industry. 1MCD outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
1MCD's Operating Margin of 46.12% is amongst the best of the industry. 1MCD outperforms 100.00% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 57.43%, 1MCD is in line with its industry, outperforming 58.18% of the companies in the same industry.
In the last couple of years the Gross Margin of 1MCD has grown nicely.
| 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.
Compared to 1 year ago, 1MCD has less shares outstanding
The number of shares outstanding for 1MCD has been reduced compared to 5 years ago.
Compared to 1 year ago, 1MCD has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.79 indicates that 1MCD is not in any danger for 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 89.09% of the companies in the same industry.
1MCD has a debt to FCF ratio of 5.60. This is a neutral value as 1MCD would need 5.60 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.60, 1MCD perfoms like the industry average, outperforming 54.55% 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
WACC7.78%
2.3 Liquidity
1MCD has a Current Ratio of 1.00. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
1MCD has a Current ratio of 1.00. This is comparable to the rest of the industry: 1MCD outperforms 58.18% of its industry peers.
A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
1MCD's Quick ratio of 0.99 is fine compared to the rest of the industry. 1MCD outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
1MCD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.26% in the past year.
The Revenue has been growing slightly by 3.94% on average over the past years.
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
Based on estimates for the next years, 1MCD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
1MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y10.93%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
Revenue Next 5Y5.81%
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 accelerating.
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
Based on the Price/Earnings ratio of 25.80, the valuation of 1MCD can be described as expensive.
1MCD's Price/Earnings ratio is in line with the industry average.
1MCD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 23.01, the valuation of 1MCD can be described as rather expensive.
1MCD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, 1MCD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 23.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MCD is on the same level as its industry peers.
63.64% of the companies in the same industry are cheaper than 1MCD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.69 | ||
| EV/EBITDA | 18.04 |
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)5.88
PEG (5Y)3.15
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, 1MCD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.40, 1MCD pays a bit more dividend than its industry peers.
1MCD's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
1MCD pays out 60.13% 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.
DP60.13%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
BIT:1MCD (12/30/2025, 7:00:00 PM)
261.6
-4.2 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap186.30B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target292.03 (11.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend5.75
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)-0.75%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 23.01 | ||
| P/S | 8.33 | ||
| P/FCF | 29.69 | ||
| P/OCF | 20.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.04 |
EPS(TTM)10.14
EY3.88%
EPS(NY)11.37
Fwd EY4.35%
FCF(TTM)8.81
FCFY3.37%
OCF(TTM)12.53
OCFY4.79%
SpS31.39
BVpS-2.58
TBVpS-6.54
PEG (NY)5.88
PEG (5Y)3.15
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
WACC7.78%
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 5Y10.93%
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 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.71%
EBIT Next 3Y11.38%
EBIT Next 5Y11.55%
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 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 25.8 and the Price/Book (PB) ratio is -101.2.
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.