MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - FRA:MDO - US5801351017 - Common Stock
258.05 EUR
-0.4 (-0.15%)
Taking everything into account, MDO scores 6 out of 10 in our fundamental rating. MDO was compared to 53 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
In the past year MDO was profitable.
In the past year MDO had a positive cash flow from operations.
MDO had positive earnings in each of the past 5 years.
MDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDO's Return On Assets of 14.09% is amongst the best of the industry. MDO outperforms 90.57% of its industry peers.
With an excellent Return On Invested Capital value of 17.40%, MDO belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
MDO 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
MDO has a better Profit Margin (32.20%) than 96.23% of its industry peers.
In the last couple of years the Profit Margin of MDO has grown nicely.
Looking at the Operating Margin, with a value of 46.13%, MDO belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
MDO's Operating Margin has improved in the last couple of years.
MDO's Gross Margin of 57.00% is in line compared to the rest of the industry. MDO outperforms 54.72% of its industry peers.
In the last couple of years the Gross Margin of MDO 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MDO is creating value.
The number of shares outstanding for MDO has been reduced compared to 1 year ago.
MDO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MDO has remained at the same level compared to a year ago.
2.2 Solvency
MDO has an Altman-Z score of 4.84. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.84, MDO belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
The Debt to FCF ratio of MDO is 6.00, which is on the high side as it means it would take MDO, 6.00 years of fcf income to pay off all of its debts.
MDO 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 | 4.84 |
ROIC/WACC2.05
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.30 indicates that MDO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, MDO belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
MDO has a Quick Ratio of 1.29. This is a normal value and indicates that MDO is financially healthy and should not expect problems in meeting its short term obligations.
MDO has a better Quick ratio (1.29) than 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.
The Revenue has been growing slightly by 1.17% in the past year.
MDO 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
Based on estimates for the next years, MDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.09% on average per year.
MDO 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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.63, the valuation of MDO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MDO indicates a somewhat cheap valuation: MDO is cheaper than 64.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MDO to the average of the S&P500 Index (27.20), we can say MDO is valued inline with the index average.
A Price/Forward Earnings ratio of 22.50 indicates a rather expensive valuation of MDO.
The rest of the industry has a similar Price/Forward Earnings ratio as MDO.
MDO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 22.5 |
4.2 Price Multiples
MDO'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 MDO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.6 | ||
| EV/EBITDA | 18.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MDO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MDO may justify a higher PE ratio.
PEG (NY)3.96
PEG (5Y)3.13
EPS Next 2Y7.58%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.30%.
Compared to an average industry Dividend Yield of 3.03, MDO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MDO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 59.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
MDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.52%
EPS Next 2Y7.58%
EPS Next 3Y7.9%
FRA:MDO (9/18/2025, 11:36:39 AM)
258.05
-0.4 (-0.15%)
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 Cap184.14B
Analysts72.56
Price Target292.88 (13.5%)
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 Years6
Div Non Decr Years6
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)-0.7%
PT rev (3m)-2.76%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.87%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 22.5 | ||
| P/S | 8.36 | ||
| P/FCF | 31.6 | ||
| P/OCF | 22.26 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.19 |
EPS(TTM)10.07
EY3.9%
EPS(NY)11.47
Fwd EY4.44%
FCF(TTM)8.17
FCFY3.16%
OCF(TTM)11.59
OCFY4.49%
SpS30.85
BVpS-3.27
TBVpS-7.18
PEG (NY)3.96
PEG (5Y)3.13
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 | 4.84 |
F-Score7
WACC8.5%
ROIC/WACC2.05
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%