MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MCD • US5801351017
263.5 EUR
+3.4 (+1.31%)
Last: Jan 30, 2026, 07:00 PM
Overall 1MCD gets a fundamental rating of 6 out of 10. We evaluated 1MCD against 63 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.
- 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.
1.2 Ratios
- 1MCD has a better Return On Assets (13.88%) than 88.89% of its industry peers.
- 1MCD has a Return On Invested Capital of 17.77%. This is amongst the best in the industry. 1MCD outperforms 84.13% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1MCD is significantly above the industry average of 13.16%.
| 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
- With an excellent Profit Margin value of 32.04%, 1MCD belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1MCD has grown nicely.
- 1MCD has a better Operating Margin (46.12%) than 98.41% of its industry peers.
- 1MCD's Operating Margin has improved in the last couple of years.
- 1MCD has a better Gross Margin (57.43%) than 68.25% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MCD is creating value.
- The number of shares outstanding for 1MCD has been reduced compared to 1 year ago.
- The number of shares outstanding for 1MCD has been reduced compared to 5 years ago.
- The debt/assets ratio for 1MCD has remained at the same level compared to a year ago.
2.2 Solvency
- 1MCD has an Altman-Z score of 4.83. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
- 1MCD's Altman-Z score of 4.83 is amongst the best of the industry. 1MCD outperforms 87.30% of its industry peers.
- 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.
- The Debt to FCF ratio of 1MCD (5.60) is better than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.83 |
ROIC/WACC2.26
WACC7.85%
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 (1.00) which is in line with its industry peers.
- A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
- 1MCD has a Quick ratio (0.99) which is comparable to the rest of the 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%.
- 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 small growth in Revenue. The Revenue has grown by 1.26% 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)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.
- The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y4.49%
EPS Next 2Y6.77%
EPS Next 3Y7.36%
EPS Next 5Y9.6%
Revenue Next Year2.58%
Revenue Next 2Y4.13%
Revenue Next 3Y4.46%
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
- A Price/Earnings ratio of 26.38 indicates a quite expensive valuation of 1MCD.
- 1MCD's Price/Earnings ratio is in line with the industry average.
- 1MCD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 23.49, the valuation of 1MCD can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1MCD.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1MCD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 23.49 |
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 indicates a slightly more expensive valuation: 1MCD is more expensive than 61.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.33 | ||
| EV/EBITDA | 18.37 |
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)5.87
PEG (5Y)3.22
EPS Next 2Y6.77%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
- 1MCD has a Yearly Dividend Yield of 2.36%. 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 1.37.
- 1MCD's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
- 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 2Y6.77%
EPS Next 3Y7.36%
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 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 26.38 and the Price/Book (PB) ratio is -103.4.
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 4.49% in the next year.