MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - BIT:1MCD - US5801351017 - Common Stock
257.55 EUR
-9.15 (-3.43%)
Overall 1MCD gets a fundamental rating of 6 out of 10. We evaluated 1MCD against 53 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. 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.
In the past 5 years 1MCD has always 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 (14.09%) is better than 90.57% 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 90.57% 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 10.61%.
| 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 96.23% of its industry peers.
1MCD's Profit Margin has improved in the last couple of years.
1MCD has a better Operating Margin (46.13%) than 96.23% of its industry peers.
In the last couple of years the Operating Margin of 1MCD has grown nicely.
1MCD has a Gross Margin (57.00%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1MCD has grown nicely.
| 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.
Compared to 1 year ago, 1MCD has less shares outstanding
The number of shares outstanding for 1MCD has been reduced compared to 5 years ago.
1MCD has about the same debt/assets ratio as last year.
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 92.45% of its industry peers.
The Debt to FCF ratio of 1MCD is 6.00, which is on the high side as it means it would take 1MCD, 6.00 years of fcf income to pay off all of its debts.
1MCD has a better Debt to FCF ratio (6.00) than 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.83 |
ROIC/WACC2.04
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.30 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a better Current ratio (1.30) than 81.13% of its industry peers.
A Quick Ratio of 1.29 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a Quick ratio of 1.29. This is amongst the best in the industry. 1MCD outperforms 81.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.93% over the past year.
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 1.17% in the last year.
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 9.09% yearly.
1MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y6.48%
EPS Next 2Y7.58%
EPS Next 3Y7.9%
EPS Next 5Y9.09%
Revenue Next Year2.93%
Revenue Next 2Y4.22%
Revenue Next 3Y4.66%
Revenue Next 5Y5.07%
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
1MCD is valuated quite expensively with a Price/Earnings ratio of 25.53.
Compared to the rest of the industry, the Price/Earnings ratio of 1MCD indicates a somewhat cheap valuation: 1MCD is cheaper than 62.26% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. 1MCD is around the same levels.
Based on the Price/Forward Earnings ratio of 22.42, the valuation of 1MCD can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MCD.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 22.42 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1MCD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.49 | ||
| EV/EBITDA | 18.12 |
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)3.94
PEG (5Y)3.11
EPS Next 2Y7.58%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.30%.
Compared to an average industry Dividend Yield of 3.03, 1MCD pays a bit more dividend than its industry peers.
1MCD's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 2Y7.58%
EPS Next 3Y7.9%
BIT:1MCD (9/16/2025, 7:00:00 PM)
257.55
-9.15 (-3.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.63%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap183.79B
Analysts72.56
Price Target294.23 (14.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend5.78
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)-0.94%
PT rev (3m)-1.56%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.51%
EPS NY rev (1m)0.87%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 22.42 | ||
| P/S | 8.33 | ||
| P/FCF | 31.49 | ||
| P/OCF | 22.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.12 |
EPS(TTM)10.09
EY3.92%
EPS(NY)11.49
Fwd EY4.46%
FCF(TTM)8.18
FCFY3.18%
OCF(TTM)11.61
OCFY4.51%
SpS30.9
BVpS-3.27
TBVpS-7.2
PEG (NY)3.94
PEG (5Y)3.11
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%
ROICexcg growth 3Y2.6%
ROICexcg 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 | 4.83 |
F-Score7
WACC8.55%
ROIC/WACC2.04
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 Y6.48%
EPS Next 2Y7.58%
EPS Next 3Y7.9%
EPS Next 5Y9.09%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year2.93%
Revenue Next 2Y4.22%
Revenue Next 3Y4.66%
Revenue Next 5Y5.07%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.26%
EBIT Next 3Y11.72%
EBIT Next 5Y9.93%
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%