MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - BIT:1MCD - US5801351017 - Common Stock
262.85 EUR
+9.05 (+3.57%)
Overall 1MCD gets a fundamental rating of 6 out of 10. We evaluated 1MCD against 56 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
1MCD had positive earnings in the past year.
1MCD had a positive operating cash flow in the past year.
Each year in the past 5 years 1MCD has been profitable.
Each year in the past 5 years 1MCD had a positive operating cash flow.
1.2 Ratios
1MCD has a Return On Assets of 14.09%. This is amongst the best in the industry. 1MCD outperforms 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.40%, 1MCD belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
1MCD had an Average Return On Invested Capital over the past 3 years of 18.38%. This is significantly above the industry average of 11.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | N/A | ||
| ROIC | 17.4% |
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 32.20% is amongst the best of the industry. 1MCD outperforms 98.21% of its industry peers.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
Looking at the Operating Margin, with a value of 46.13%, 1MCD belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
1MCD's Operating Margin has improved in the last couple of years.
1MCD has a Gross Margin (57.00%) 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 | 46.13% | ||
| PM (TTM) | 32.2% | ||
| GM | 57% |
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.
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 4.82. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
1MCD's Altman-Z score of 4.82 is amongst the best of the industry. 1MCD outperforms 92.86% of its industry peers.
1MCD has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as 1MCD would need 6.00 years to pay back of all of its debts.
1MCD has a Debt to FCF ratio of 6.00. This is comparable to the rest of the industry: 1MCD outperforms 58.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.82 |
ROIC/WACC2.26
WACC7.7%
2.3 Liquidity
1MCD has a Current Ratio of 1.30. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1MCD (1.30) is better than 85.71% of its industry peers.
A Quick Ratio of 1.29 indicates that 1MCD should not have too much problems paying its short term obligations.
The Quick ratio of 1MCD (1.29) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
1MCD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
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 1.17%.
1MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
EPS 1Y (TTM)0.93%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%7.41%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
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 9.23% yearly.
1MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y6.33%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
EPS Next 5Y9.23%
Revenue Next Year2.95%
Revenue Next 2Y4.22%
Revenue Next 3Y4.64%
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.
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
The Price/Earnings ratio is 25.47, which means the current valuation is very expensive for 1MCD.
Based on the Price/Earnings ratio, 1MCD is valued a bit cheaper than 62.50% of the companies in the same industry.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.43, the valuation of 1MCD can be described as rather expensive.
1MCD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1MCD to the average of the S&P500 Index (22.50), we can say 1MCD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 22.43 |
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 indicates a slightly more expensive valuation: 1MCD is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.41 | ||
| EV/EBITDA | 18.08 |
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.
1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)3.11
EPS Next 2Y7.41%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, 1MCD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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
59.52% of the earnings are spent on dividend by 1MCD. This is a bit on the high side, but may be sustainable.
The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.52%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
BIT:1MCD (10/20/2025, 7:00:00 PM)
262.85
+9.05 (+3.57%)
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 Cap187.57B
Revenue(TTM)26.06B
Net Income(TTM)8.39B
Analysts72.38
Price Target292.94 (11.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend5.8
Dividend Growth(5Y)7.43%
DP59.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.06%
Min EPS beat(2)-0.53%
Max EPS beat(2)0.41%
EPS beat(4)1
Avg EPS beat(4)-0.35%
Min EPS beat(4)-1.13%
Max EPS beat(4)0.41%
EPS beat(8)3
Avg EPS beat(8)0.17%
EPS beat(12)7
Avg EPS beat(12)2.76%
EPS beat(16)10
Avg EPS beat(16)2.82%
Revenue beat(2)1
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.15%
PT rev (1m)-0.44%
PT rev (3m)-1.37%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 22.43 | ||
| P/S | 8.31 | ||
| P/FCF | 31.41 | ||
| P/OCF | 22.12 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.08 |
EPS(TTM)10.32
EY3.93%
EPS(NY)11.72
Fwd EY4.46%
FCF(TTM)8.37
FCFY3.18%
OCF(TTM)11.88
OCFY4.52%
SpS31.62
BVpS-3.35
TBVpS-7.36
PEG (NY)4.02
PEG (5Y)3.11
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | N/A | ||
| ROCE | 21.76% | ||
| ROIC | 17.4% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 19.2% | ||
| OM | 46.13% | ||
| PM (TTM) | 32.2% | ||
| GM | 57% | ||
| FCFM | 26.47% |
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)19.5%
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 134.76% | ||
| Cap/Sales | 11.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.11% | ||
| Profit Quality | 82.2% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.82 |
F-Score7
WACC7.7%
ROIC/WACC2.26
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.22%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0.93%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%7.41%
EPS Next Y6.33%
EPS Next 2Y7.41%
EPS Next 3Y7.89%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year2.95%
Revenue Next 2Y4.22%
Revenue Next 3Y4.64%
Revenue Next 5Y5.06%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y10.03%
FCF growth 1Y3.89%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y12.2%
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 25.47 and the Price/Book (PB) ratio is -78.49.
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 6.33% in the next year.