MCDONALD'S CORP (MCD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCD - US5801351017 - Common Stock
302.84 USD
-4.59 (-1.49%)
302.12 USD
-0.72 (-0.24%)
We assign a fundamental rating of 6 out of 10 to MCD. MCD was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. MCD scores excellent on profitability, but there are some minor concerns on its financial health. MCD is valied quite expensively at the moment, while it does show a decent growth rate. Finally MCD also has an excellent dividend rating. With these ratings, MCD could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- MCD had positive earnings in the past year.
- In the past year MCD had a positive cash flow from operations.
- In the past 5 years MCD has always been profitable.
- In the past 5 years MCD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.88%, MCD belongs to the top of the industry, outperforming 90.98% of the companies in the same industry.
- MCD has a better Return On Invested Capital (17.77%) than 89.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MCD is significantly above the industry average of 10.34%.
| 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
- MCD's Profit Margin of 32.04% is amongst the best of the industry. MCD outperforms 97.74% of its industry peers.
- MCD's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 46.12%, MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- MCD's Operating Margin has improved in the last couple of years.
- MCD's Gross Margin of 57.43% is fine compared to the rest of the industry. MCD outperforms 72.18% of its industry peers.
- MCD'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
- MCD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- MCD has less shares outstanding than it did 1 year ago.
- MCD has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for MCD has remained at the same level compared to a year ago.
2.2 Solvency
- MCD has an Altman-Z score of 4.76. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.76, MCD belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
- The Debt to FCF ratio of MCD is 5.60, which is a neutral value as it means it would take MCD, 5.60 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 5.60, MCD is doing good in the industry, outperforming 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.76 |
ROIC/WACC2.24
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that MCD should not have too much problems paying its short term obligations.
- The Current ratio of MCD (1.00) is comparable to the rest of the industry.
- MCD has a Quick Ratio of 1.00. This is a bad value and indicates that MCD is not financially healthy enough and could expect problems in meeting its short term obligations.
- MCD has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- MCD 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, MCD shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
- The Revenue has been growing slightly by 3.94% on average over the past years.
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.
- The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y9.6%
Revenue Next Year2.58%
Revenue Next 2Y4.1%
Revenue Next 3Y4.44%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.43, the valuation of MCD can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of MCD indicates a somewhat cheap valuation: MCD is cheaper than 60.90% of the companies listed in the same industry.
- MCD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.94.
- A Price/Forward Earnings ratio of 22.67 indicates a rather expensive valuation of MCD.
- MCD's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. MCD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 22.67 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCD indicates a slightly more expensive valuation: MCD is more expensive than 64.66% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, MCD is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.25 | ||
| EV/EBITDA | 17.81 |
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 MCD may justify a higher PE ratio.
PEG (NY)5.8
PEG (5Y)3.1
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
- MCD has a Yearly Dividend Yield of 2.41%.
- MCD's Dividend Yield is rather good when compared to the industry average which is at 1.19. MCD pays more dividend than 82.71% of the companies in the same industry.
- MCD's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- The dividend of MCD is nicely growing with an annual growth rate of 7.43%!
- MCD has been paying a dividend for at least 10 years, so it has a reliable track record.
- MCD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.43%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 60.13% of the earnings are spent on dividend by MCD. This is not a sustainable payout ratio.
- The dividend of MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
302.84
-4.59 (-1.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners74.96%
Inst Owner Change0.08%
Ins Owners0.2%
Ins Owner Change-2.18%
Market Cap215.67B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target344.06 (13.61%)
Short Float %1.17%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend6.77
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years34
Div Non Decr Years34
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)0.58%
PT rev (3m)-0.46%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 22.67 | ||
| P/S | 8.21 | ||
| P/FCF | 29.25 | ||
| P/OCF | 20.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.81 |
EPS(TTM)11.91
EY3.93%
EPS(NY)13.36
Fwd EY4.41%
FCF(TTM)10.35
FCFY3.42%
OCF(TTM)14.73
OCFY4.86%
SpS36.88
BVpS-3.04
TBVpS-7.68
PEG (NY)5.8
PEG (5Y)3.1
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 | 4.76 |
F-Score7
WACC7.95%
ROIC/WACC2.24
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 Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
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 2Y4.1%
Revenue Next 3Y4.44%
Revenue Next 5Y5.51%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.71%
EBIT Next 3Y11.38%
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 / MCD FAQ
Can you provide the ChartMill fundamental rating for MCDONALD'S CORP?
ChartMill assigns a fundamental rating of 6 / 10 to MCD.
What is the valuation status for MCD stock?
ChartMill assigns a valuation rating of 3 / 10 to MCDONALD'S CORP (MCD). This can be considered as Overvalued.
How profitable is MCDONALD'S CORP (MCD) stock?
MCDONALD'S CORP (MCD) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for MCD stock?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (MCD) is 25.43 and the Price/Book (PB) ratio is -99.71.
Can you provide the dividend sustainability for MCD stock?
The dividend rating of MCDONALD'S CORP (MCD) is 7 / 10 and the dividend payout ratio is 60.13%.