MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
261.7 EUR
-2.6 (-0.98%)
Taking everything into account, 1MCD scores 6 out of 10 in our fundamental rating. 1MCD was compared to 50 industry peers in the Hotels, Restaurants & Leisure industry. While 1MCD belongs to the best of the industry regarding profitability, 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
In the past year 1MCD was profitable.
1MCD had a positive operating cash flow in the past year.
In the past 5 years 1MCD has always been profitable.
1MCD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MCD has a better Return On Assets (13.88%) than 94.00% of its industry peers.
1MCD has a Return On Invested Capital of 17.77%. This is amongst the best in the industry. 1MCD outperforms 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MCD is significantly above the industry average of 11.10%.
| 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 has a Profit Margin of 32.04%. This is amongst the best in 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 has a better Operating Margin (46.12%) than 100.00% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
1MCD has a Gross Margin (57.43%) which is in line with 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
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.
1MCD has less shares outstanding than it did 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 4.75 indicates that 1MCD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.75, 1MCD belongs to the best of the industry, outperforming 90.00% 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.
1MCD's Debt to FCF ratio of 5.60 is fine compared to the rest of the industry. 1MCD outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.75 |
ROIC/WACC2.31
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1MCD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, 1MCD is in line with its industry, outperforming 60.00% of the companies in the same industry.
1MCD has a Quick Ratio of 1.00. This is a bad value and indicates that 1MCD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, 1MCD perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| 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%.
Measured over the past years, 1MCD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
1MCD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
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
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
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.
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 25.31, which means the current valuation is very expensive for 1MCD.
Based on the Price/Earnings ratio, 1MCD is valued a bit cheaper than 64.00% of the companies in the same industry.
1MCD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 22.47, the valuation of 1MCD can be described as rather expensive.
1MCD's Price/Forward Earnings is on the same level as the industry average.
1MCD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 22.47 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA ratio is in line with the industry average.
1MCD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1MCD is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.17 | ||
| EV/EBITDA | 17.78 |
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)4.5
PEG (5Y)3.09
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.45%.
1MCD's Dividend Yield is a higher than the industry average which is at 3.17.
Compared to an average S&P500 Dividend Yield of 2.42, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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
60.13% of the earnings are spent on dividend by 1MCD. 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 2Y6.96%
EPS Next 3Y7.48%
BIT:1MCD (11/14/2025, 7:00:00 PM)
261.7
-2.6 (-0.98%)
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 Cap186.75B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts72.27
Price Target291.48 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend5.88
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)-0.5%
PT rev (3m)-1.33%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 22.47 | ||
| P/S | 8.19 | ||
| P/FCF | 29.17 | ||
| P/OCF | 20.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.78 |
EPS(TTM)10.34
EY3.95%
EPS(NY)11.65
Fwd EY4.45%
FCF(TTM)8.97
FCFY3.43%
OCF(TTM)12.76
OCFY4.87%
SpS31.95
BVpS-2.63
TBVpS-6.65
PEG (NY)4.5
PEG (5Y)3.09
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 | 4.75 |
F-Score7
WACC7.68%
ROIC/WACC2.31
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 Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y9.88%
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 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 25.31 and the Price/Book (PB) ratio is -99.46.
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 5.63% in the next year.