MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - FRA:MDO - US5801351017 - Common Stock
260.55 EUR
-3.55 (-1.34%)
Taking everything into account, MDO scores 6 out of 10 in our fundamental rating. MDO was compared to 54 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MDO had positive earnings in the past year.
In the past year MDO had a positive cash flow from operations.
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 Return On Assets of 13.88%. This is amongst the best in the industry. MDO outperforms 90.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.77%, MDO belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MDO is significantly above the industry average of 10.85%.
| 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
The Profit Margin of MDO (32.04%) is better than 98.15% of its industry peers.
MDO's Profit Margin has improved in the last couple of years.
MDO has a better Operating Margin (46.12%) than 96.30% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
The Gross Margin of MDO (57.43%) 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MDO is creating value.
The number of shares outstanding for MDO has been reduced compared to 1 year ago.
The number of shares outstanding for MDO has been reduced compared to 5 years ago.
MDO has about the same debt/assets ratio as last year.
2.2 Solvency
MDO has an Altman-Z score of 4.75. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MDO (4.75) is better than 92.59% 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.
The Debt to FCF ratio of MDO (5.60) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.75 |
ROIC/WACC2.3
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.00 indicates that MDO should not have too much problems paying its short term obligations.
MDO has a Current ratio of 1.00. This is in the better half of the industry: MDO outperforms 61.11% of its industry peers.
A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
MDO has a better Quick ratio (0.99) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
MDO 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, MDO shows a small growth in Revenue. The Revenue has grown by 1.26% in the last 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)0.51%
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
Based on estimates for the next years, MDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
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
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
The Price/Earnings ratio is 25.30, which means the current valuation is very expensive for MDO.
MDO's Price/Earnings ratio is a bit cheaper when compared to the industry. MDO is cheaper than 62.96% of the companies in the same industry.
MDO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
MDO is valuated rather expensively with a Price/Forward Earnings ratio of 22.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDO is on the same level as its industry peers.
MDO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 22.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MDO is valued a bit more expensive than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.15 | ||
| EV/EBITDA | 17.76 |
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.
MDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.49
PEG (5Y)3.09
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.49%, MDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.14, MDO pays a bit more dividend than its industry peers.
MDO's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
On average, the dividend of MDO grows each year by 7.43%, which is quite nice.
Dividend Growth(5Y)7.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
MDO pays out 60.13% 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.
DP60.13%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
FRA:MDO (11/7/2025, 7:00:00 PM)
260.55
-3.55 (-1.34%)
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 Cap185.93B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts72.27
Price Target296.09 (13.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend5.86
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)0.49%
PT rev (3m)0.39%
EPS NQ rev (1m)-2.72%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 22.45 | ||
| P/S | 8.18 | ||
| P/FCF | 29.15 | ||
| P/OCF | 20.5 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.76 |
EPS(TTM)10.3
EY3.95%
EPS(NY)11.61
Fwd EY4.46%
FCF(TTM)8.94
FCFY3.43%
OCF(TTM)12.71
OCFY4.88%
SpS31.84
BVpS-2.62
TBVpS-6.63
PEG (NY)4.49
PEG (5Y)3.09
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 | 4.75 |
F-Score7
WACC7.72%
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 25.3 and the Price/Book (PB) ratio is -99.38.
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%.