MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
FRA:MDO - Deutsche Boerse Ag - US5801351017 - Common Stock - Currency: EUR
Overall MDO gets a fundamental rating of 6 out of 10. We evaluated MDO against 58 industry peers in the Hotels, Restaurants & Leisure industry. While MDO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MDO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MDO had positive earnings in the past year.
MDO had a positive operating cash flow in the past year.
In the past 5 years MDO has always been profitable.
Each year in the past 5 years MDO had a positive operating cash flow.
1.2 Ratios
MDO has a better Return On Assets (14.49%) than 91.38% of its industry peers.
MDO has a Return On Invested Capital of 18.02%. This is amongst the best in the industry. MDO outperforms 91.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDO is significantly above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | N/A | ||
| ROIC | 18.02% |
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
Looking at the Profit Margin, with a value of 31.75%, MDO belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
In the last couple of years the Profit Margin of MDO has grown nicely.
Looking at the Operating Margin, with a value of 45.86%, MDO belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
MDO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 56.83%, MDO is in line with its industry, outperforming 56.90% of the companies in the same industry.
In the last couple of years the Gross Margin of MDO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.86% | ||
| PM (TTM) | 31.75% | ||
| GM | 56.83% |
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
MDO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MDO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MDO has less shares outstanding
The debt/assets ratio for MDO has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.99 indicates that MDO is not in any danger for bankruptcy at the moment.
MDO has a Altman-Z score of 4.99. This is amongst the best in the industry. MDO outperforms 93.10% of its industry peers.
The Debt to FCF ratio of MDO is 5.80, which is a neutral value as it means it would take MDO, 5.80 years of fcf income to pay off all of its debts.
MDO has a Debt to FCF ratio of 5.80. This is in the better half of the industry: MDO outperforms 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 4.99 |
ROIC/WACC2.09
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MDO should not have too much problems paying its short term obligations.
MDO's Current ratio of 1.18 is fine compared to the rest of the industry. MDO outperforms 75.86% of its industry peers.
MDO has a Quick Ratio of 1.17. This is a normal value and indicates that MDO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, MDO is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for MDO have decreased by -2.58% in the last year.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
MDO shows a decrease in Revenue. In the last year, the revenue decreased by -0.22%.
The Revenue has been growing slightly by 3.94% on average over the past years.
EPS 1Y (TTM)-2.58%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
3.2 Future
Based on estimates for the next years, MDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.03% on average per year.
MDO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y5.65%
EPS Next 2Y6.88%
EPS Next 3Y7.62%
EPS Next 5Y9.03%
Revenue Next Year1.45%
Revenue Next 2Y3.39%
Revenue Next 3Y4.21%
Revenue Next 5Y4.81%
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 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
MDO is valuated quite expensively with a Price/Earnings ratio of 25.52.
Based on the Price/Earnings ratio, MDO is valued a bit cheaper than 62.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. MDO is around the same levels.
Based on the Price/Forward Earnings ratio of 22.27, the valuation of MDO can be described as rather expensive.
MDO's Price/Forward Earnings ratio is in line with the industry average.
MDO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 22.27 |
4.2 Price Multiples
MDO's Enterprise Value to EBITDA ratio is in line with the industry average.
MDO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.82 | ||
| EV/EBITDA | 18.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.51
PEG (5Y)3.11
EPS Next 2Y6.88%
EPS Next 3Y7.62%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.41%.
MDO's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to an average S&P500 Dividend Yield of 2.37, MDO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of MDO is nicely growing with an annual growth rate of 7.43%!
Dividend Growth(5Y)7.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
MDO pays out 60.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.41%
EPS Next 2Y6.88%
EPS Next 3Y7.62%
FRA:MDO (7/11/2025, 7:00:00 PM)
254.9
-0.6 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.69%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap182.26B
Analysts72.86
Price Target296.61 (16.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5.76
Dividend Growth(5Y)7.43%
DP60.41%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.83%
Min EPS beat(2)-1.13%
Max EPS beat(2)-0.53%
EPS beat(4)0
Avg EPS beat(4)-1.51%
Min EPS beat(4)-4.24%
Max EPS beat(4)-0.14%
EPS beat(8)3
Avg EPS beat(8)1.71%
EPS beat(12)7
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)3.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)-0.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)-1.9%
PT rev (3m)-3.94%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 22.27 | ||
| P/S | 8.3 | ||
| P/FCF | 31.82 | ||
| P/OCF | 22.5 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.11 |
EPS(TTM)9.99
EY3.92%
EPS(NY)11.44
Fwd EY4.49%
FCF(TTM)8.01
FCFY3.14%
OCF(TTM)11.33
OCFY4.44%
SpS30.7
BVpS-4.13
TBVpS-7.93
PEG (NY)4.51
PEG (5Y)3.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | N/A | ||
| ROCE | 22.53% | ||
| ROIC | 18.02% | ||
| ROICexc | 18.46% | ||
| ROICexgc | 19.69% | ||
| OM | 45.86% | ||
| PM (TTM) | 31.75% | ||
| GM | 56.83% | ||
| FCFM | 26.09% |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.8 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 131.89% | ||
| Cap/Sales | 10.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.26% | ||
| Profit Quality | 82.17% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.99 |
F-Score5
WACC8.64%
ROIC/WACC2.09
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)-2.58%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-1.11%
EPS Next Y5.65%
EPS Next 2Y6.88%
EPS Next 3Y7.62%
EPS Next 5Y9.03%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-3.45%
Revenue Next Year1.45%
Revenue Next 2Y3.39%
Revenue Next 3Y4.21%
Revenue Next 5Y4.81%
EBIT growth 1Y-0.13%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.21%
EBIT Next 3Y11.52%
EBIT Next 5Y9.83%
FCF growth 1Y18.21%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y23.6%
OCF growth 3Y1.11%
OCF growth 5Y3.07%