MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - FRA:MDO - US5801351017 - Common Stock
262.65 EUR
+0.25 (+0.1%)
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Hotels, Restaurants & Leisure industry. MDO has an excellent profitability rating, but there are some minor concerns on its financial health. MDO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MDO was profitable.
MDO had a positive operating cash flow in the past year.
Each year in the past 5 years MDO has been profitable.
MDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDO has a better Return On Assets (13.88%) than 92.00% of its industry peers.
MDO has a better Return On Invested Capital (17.77%) than 92.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDO is significantly above the industry average of 11.10%.
| 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
MDO has a Profit Margin of 32.04%. This is amongst the best in the industry. MDO outperforms 98.00% of its industry peers.
In the last couple of years the Profit Margin of MDO has grown nicely.
MDO has a better Operating Margin (46.12%) than 98.00% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
MDO has a Gross Margin (57.43%) which is comparable to the rest of the industry.
MDO'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
MDO 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, MDO has less shares outstanding
The number of shares outstanding for MDO has been reduced compared to 5 years ago.
Compared to 1 year ago, MDO has about the same debt to assets ratio.
2.2 Solvency
MDO has an Altman-Z score of 4.77. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MDO (4.77) is better than 90.00% of its industry peers.
MDO has a debt to FCF ratio of 5.60. This is a neutral value as MDO would need 5.60 years to pay back of all of its debts.
MDO's Debt to FCF ratio of 5.60 is fine compared to the rest of the industry. MDO outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.77 |
ROIC/WACC2.3
WACC7.73%
2.3 Liquidity
MDO has a Current Ratio of 1.00. This is a normal value and indicates that MDO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, MDO perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
MDO has a Quick Ratio of 1.00. This is a bad value and indicates that MDO is not financially healthy enough and could expect problems in meeting its short term obligations.
MDO has a Quick ratio of 0.99. This is comparable to the rest of the industry: MDO outperforms 58.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
MDO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
MDO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
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 9.23% on average over the next years. This is quite good.
Based on estimates for the next years, MDO will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 25.55, MDO can be considered very expensive at the moment.
62.00% of the companies in the same industry are more expensive than MDO, based on the Price/Earnings ratio.
MDO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.67, MDO is valued on the expensive side.
MDO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MDO to the average of the S&P500 Index (35.42), we can say MDO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 22.67 |
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 a bit more expensive when compared to the industry. MDO is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.44 | ||
| EV/EBITDA | 17.9 |
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 MDO may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)3.12
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.42%.
MDO's Dividend Yield is a higher than the industry average which is at 3.12.
Compared to an average S&P500 Dividend Yield of 2.44, MDO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
60.13% of the earnings are spent on dividend by MDO. This is not a sustainable payout ratio.
MDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.13%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
FRA:MDO (11/20/2025, 5:09:09 PM)
262.65
+0.25 (+0.1%)
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 Cap187.43B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts72.27
Price Target296.88 (13.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend5.82
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years6
Div Non Decr Years6
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)0.76%
PT rev (3m)0.65%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 22.67 | ||
| P/S | 8.27 | ||
| P/FCF | 29.44 | ||
| P/OCF | 20.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.9 |
EPS(TTM)10.28
EY3.91%
EPS(NY)11.59
Fwd EY4.41%
FCF(TTM)8.92
FCFY3.4%
OCF(TTM)12.69
OCFY4.83%
SpS31.78
BVpS-2.62
TBVpS-6.62
PEG (NY)4.54
PEG (5Y)3.12
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 | 4.77 |
F-Score7
WACC7.73%
ROIC/WACC2.3
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 Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y9.88%
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 / MDO.DE FAQ
What is the fundamental rating for MDO stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDO.DE.
What is the valuation status for MDO stock?
ChartMill assigns a valuation rating of 3 / 10 to MCDONALD'S CORP (MDO.DE). This can be considered as Overvalued.
How profitable is MCDONALD'S CORP (MDO.DE) stock?
MCDONALD'S CORP (MDO.DE) has a profitability rating of 8 / 10.
What is the valuation of MCDONALD'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (MDO.DE) is 25.55 and the Price/Book (PB) ratio is -100.37.
Is the dividend of MCDONALD'S CORP sustainable?
The dividend rating of MCDONALD'S CORP (MDO.DE) is 5 / 10 and the dividend payout ratio is 60.13%.