MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
265.8 EUR
-3.35 (-1.24%)
We assign a fundamental rating of 6 out of 10 to 1MCD. 1MCD was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. 1MCD has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1MCD is valued expensive at the moment.
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.
Each year in the past 5 years 1MCD has been profitable.
In the past 5 years 1MCD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1MCD (13.88%) is better than 88.71% of its industry peers.
With an excellent Return On Invested Capital value of 17.77%, 1MCD belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCD is above the industry average of 13.71%.
| 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
The Profit Margin of 1MCD (32.04%) is better than 98.39% of its industry peers.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
With an excellent Operating Margin value of 46.12%, 1MCD belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
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 the better half of the industry, outperforming 64.52% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MCD is creating value.
Compared to 1 year ago, 1MCD has less shares outstanding
Compared to 5 years ago, 1MCD has less shares outstanding
1MCD has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 4.83 indicates that 1MCD is not in any danger for bankruptcy at the moment.
1MCD has a Altman-Z score of 4.83. This is amongst the best in the industry. 1MCD outperforms 87.10% 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.
1MCD has a Debt to FCF ratio of 5.60. This is comparable to the rest of the industry: 1MCD outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.83 |
ROIC/WACC2.22
WACC8.01%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD's Current ratio of 1.00 is in line compared to the rest of the industry. 1MCD outperforms 59.68% of its industry peers.
A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
The Quick ratio of 1MCD (0.99) is better than 62.90% 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.
1MCD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
1MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
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.
Based on estimates for the next years, 1MCD will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y4.44%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
EPS Next 5Y10.93%
Revenue Next Year2.58%
Revenue Next 2Y4.08%
Revenue Next 3Y4.44%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.32, the valuation of 1MCD can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 1MCD.
The average S&P500 Price/Earnings ratio is at 26.57. 1MCD is around the same levels.
The Price/Forward Earnings ratio is 23.43, which indicates a rather expensive current 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 (24.04), we can say 1MCD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 23.43 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MCD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.26 | ||
| EV/EBITDA | 18.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1MCD may justify a higher PE ratio.
PEG (NY)5.93
PEG (5Y)3.21
EPS Next 2Y6.77%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.32, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
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 3Y7.49%
BIT:1MCD (12/23/2025, 7:00:00 PM)
265.8
-3.35 (-1.24%)
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 Cap189.29B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target292.03 (9.87%)
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)-0.77%
PT rev (3m)-0.24%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 23.43 | ||
| P/S | 8.49 | ||
| P/FCF | 30.26 | ||
| P/OCF | 21.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.33 |
EPS(TTM)10.1
EY3.8%
EPS(NY)11.34
Fwd EY4.27%
FCF(TTM)8.78
FCFY3.31%
OCF(TTM)12.49
OCFY4.7%
SpS31.29
BVpS-2.58
TBVpS-6.52
PEG (NY)5.93
PEG (5Y)3.21
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 | 4.83 |
F-Score7
WACC8.01%
ROIC/WACC2.22
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 Y4.44%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
EPS Next 5Y10.93%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.58%
Revenue Next 2Y4.08%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.72%
EBIT Next 3Y11.49%
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 6 / 10 to 1MCD.MI.
What is the valuation status of MCDONALD'S CORP (1MCD.MI) 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.
Can you provide the PE and PB ratios for 1MCD stock?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (1MCD.MI) is 26.32 and the Price/Book (PB) ratio is -103.15.
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 4.44% in the next year.