MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - FRA:MDO - US5801351017 - Common Stock
262.65 EUR
+0.75 (+0.29%)
Overall MDO gets a fundamental rating of 6 out of 10. We evaluated MDO against 50 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.
MDO had a positive operating cash flow in the past year.
MDO had positive earnings in each of the past 5 years.
Each year in the past 5 years MDO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.88%, MDO belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.77%, MDO belongs to the top of the industry, outperforming 92.00% 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 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's Profit Margin of 32.04% is amongst the best of 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 Operating Margin of 46.12%. This is amongst the best in the industry. MDO outperforms 98.00% of its industry peers.
In the last couple of years the Operating Margin of MDO has grown nicely.
With a Gross Margin value of 57.43%, MDO perfoms like the industry average, outperforming 56.00% of the companies in the same 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.
MDO has less shares outstanding than it did 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 4.78. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
MDO has a Altman-Z score of 4.78. This is amongst the best in the industry. MDO outperforms 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 has a better Debt to FCF ratio (5.60) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.78 |
ROIC/WACC2.29
WACC7.75%
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 comparable to the rest of the industry: MDO outperforms 58.00% of its industry peers.
A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, MDO perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
| 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%.
MDO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
The Revenue has been growing slightly by 1.26% in the past 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
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.
The Revenue is expected to grow by 5.06% on average over the next years.
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
Based on the Price/Earnings ratio of 25.70, the valuation of MDO can be described as expensive.
MDO's Price/Earnings ratio is a bit cheaper when compared to the industry. MDO is cheaper than 62.00% of the companies in the same industry.
MDO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.80 indicates a rather expensive valuation of MDO.
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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
MDO's Enterprise Value to EBITDA is on the same level as 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 | 29.61 | ||
| EV/EBITDA | 17.95 |
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)4.56
PEG (5Y)3.13
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
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.
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 (11/17/2025, 5:23:58 PM)
262.65
+0.75 (+0.29%)
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 | 25.7 | ||
| Fwd PE | 22.8 | ||
| P/S | 8.31 | ||
| P/FCF | 29.61 | ||
| P/OCF | 20.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.95 |
EPS(TTM)10.22
EY3.89%
EPS(NY)11.52
Fwd EY4.39%
FCF(TTM)8.87
FCFY3.38%
OCF(TTM)12.62
OCFY4.8%
SpS31.6
BVpS-2.6
TBVpS-6.58
PEG (NY)4.56
PEG (5Y)3.13
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 | 4.78 |
F-Score7
WACC7.75%
ROIC/WACC2.29
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 25.7 and the Price/Book (PB) ratio is -100.93.
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%.