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

Europe • Euronext Milan • BIT:1MCD • US5801351017

269.1 EUR
+5.6 (+2.13%)
Last: Feb 2, 2026, 07:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 1MCD. 1MCD was compared to 59 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.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • 1MCD had positive earnings in the past year.
  • 1MCD had a positive operating cash flow in the past year.
  • 1MCD had positive earnings in each of the past 5 years.
  • 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 2B 4B 6B 8B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.88%, 1MCD belongs to the top of the industry, outperforming 89.83% of the companies in the same industry.
  • 1MCD's Return On Invested Capital of 17.77% is amongst the best of the industry. 1MCD outperforms 84.75% 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 13.35%.
Industry RankSector 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%
1MCD.MI Yearly ROA, ROE, ROIC1MCD.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200

1.3 Margins

  • Looking at the Profit Margin, with a value of 32.04%, 1MCD belongs to the top of the industry, outperforming 98.31% of the companies in the same industry.
  • 1MCD's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 46.12%, 1MCD belongs to the best of the industry, outperforming 98.31% of the companies in the same industry.
  • 1MCD's Operating Margin has improved in the last couple of years.
  • 1MCD's Gross Margin of 57.43% is fine compared to the rest of the industry. 1MCD outperforms 64.41% of its industry peers.
  • In the last couple of years the Gross Margin of 1MCD has grown nicely.
Industry RankSector 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%
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 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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
  • Compared to 5 years ago, 1MCD has less shares outstanding
  • The debt/assets ratio for 1MCD has remained at the same level 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 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 10B 20B 30B 40B 50B

2.2 Solvency

  • 1MCD has an Altman-Z score of 4.86. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
  • 1MCD's Altman-Z score of 4.86 is amongst the best of the industry. 1MCD outperforms 89.83% of its industry peers.
  • 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 59.32% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.6
Altman-Z 4.86
ROIC/WACC2.25
WACC7.89%
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 0 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 1.00 indicates that 1MCD should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.00, 1MCD perfoms like the industry average, outperforming 59.32% of the companies in the same industry.
  • A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
  • 1MCD has a Quick ratio of 0.99. This is in the better half of the industry: 1MCD outperforms 64.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.99
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 2B 4B 6B

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

5

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%.
  • 1MCD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
  • The Revenue has been growing slightly by 1.26% in the past 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

  • The Earnings Per Share is expected to grow by 9.60% 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 5.51% on average per year.
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

  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 26.70, the valuation of 1MCD can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1MCD is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.67. 1MCD is around the same levels.
  • A Price/Forward Earnings ratio of 23.79 indicates a rather expensive valuation of 1MCD.
  • 1MCD's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of 1MCD to the average of the S&P500 Index (27.20), we can say 1MCD is valued inline with the index average.
Industry RankSector Rank
PE 26.7
Fwd PE 23.79
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MCD is on the same level as its industry peers.
  • 1MCD's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.72
EV/EBITDA 18.57
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 an expensive valuation of the company.
  • 1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.95
PEG (5Y)3.26
EPS Next 2Y6.77%
EPS Next 3Y7.36%

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

6

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 1.34.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1MCD pays a bit more dividend than the S&P500 average.
Industry RankSector 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.
  • The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.77%
EPS Next 3Y7.36%
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 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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MCDONALD'S CORP

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

269.1

+5.6 (+2.13%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05
Earnings (Next)02-11
Inst Owners74.96%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap191.64B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target294.82 (9.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.36%
Yearly Dividend5.68
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)0.96%
PT rev (3m)-0.33%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.25%
Valuation
Industry RankSector Rank
PE 26.7
Fwd PE 23.79
P/S 8.62
P/FCF 30.72
P/OCF 21.6
P/B N/A
P/tB N/A
EV/EBITDA 18.57
EPS(TTM)10.08
EY3.75%
EPS(NY)11.31
Fwd EY4.2%
FCF(TTM)8.76
FCFY3.26%
OCF(TTM)12.46
OCFY4.63%
SpS31.2
BVpS-2.57
TBVpS-6.5
PEG (NY)5.95
PEG (5Y)3.26
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 4.86
F-Score7
WACC7.89%
ROIC/WACC2.25
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 Y4.49%
EPS Next 2Y6.77%
EPS Next 3Y7.36%
EPS Next 5Y9.6%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.58%
Revenue Next 2Y4.13%
Revenue Next 3Y4.46%
Revenue Next 5Y5.51%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.78%
EBIT Next 3Y11.45%
EBIT Next 5Y10.59%
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 for 1MCD stock?

ChartMill assigns a valuation rating of 3 / 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 26.7 and the Price/Book (PB) ratio is -104.72.


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.