MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
268.8 EUR
+3.35 (+1.26%)
Overall MDO gets a fundamental rating of 6 out of 10. We evaluated MDO against 57 industry peers in the Hotels, Restaurants & Leisure industry. While MDO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MDO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MDO was profitable.
MDO had a positive operating cash flow in the past year.
MDO had positive earnings in each of the past 5 years.
In the past 5 years MDO always reported a positive cash flow from operatings.
1.2 Ratios
MDO's Return On Assets of 13.88% is amongst the best of the industry. MDO outperforms 90.00% of its industry peers.
MDO has a better Return On Invested Capital (17.77%) than 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDO is significantly above the industry average of 12.94%.
| 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 98.33% 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 98.33% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
MDO has a better Gross Margin (57.43%) than 61.67% of its industry peers.
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 4.84. 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 93.33% of the companies in the same industry.
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 Debt to FCF ratio (5.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.2
WACC8.06%
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 58.33% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
The Quick ratio of MDO (0.99) is better than 61.67% 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.
The Revenue has been growing slightly by 1.26% 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)0.51%
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
MDO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
Based on estimates for the next years, MDO will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y4.44%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
EPS Next 5Y10.93%
Revenue Next Year2.58%
Revenue Next 2Y4.08%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 26.48, MDO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MDO.
Compared to an average S&P500 Price/Earnings ratio of 26.56, MDO is valued at the same level.
The Price/Forward Earnings ratio is 23.58, which indicates a rather expensive current valuation of MDO.
MDO's Price/Forward Earnings ratio is in line with the industry average.
MDO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 23.58 |
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 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.45 | ||
| EV/EBITDA | 18.43 |
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)5.96
PEG (5Y)3.23
EPS Next 2Y6.77%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.40%. 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 1.53.
Compared to an average S&P500 Dividend Yield of 1.87, MDO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
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 2Y6.77%
EPS Next 3Y7.49%
FRA:MDO (12/12/2025, 7:00:00 PM)
268.8
+3.35 (+1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap191.43B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target293.24 (9.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend5.77
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)-0.96%
PT rev (3m)0.12%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.48 | ||
| Fwd PE | 23.58 | ||
| P/S | 8.55 | ||
| P/FCF | 30.45 | ||
| P/OCF | 21.41 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.43 |
EPS(TTM)10.15
EY3.78%
EPS(NY)11.4
Fwd EY4.24%
FCF(TTM)8.83
FCFY3.28%
OCF(TTM)12.55
OCFY4.67%
SpS31.44
BVpS-2.59
TBVpS-6.55
PEG (NY)5.96
PEG (5Y)3.23
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 | 4.84 |
F-Score7
WACC8.06%
ROIC/WACC2.2
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 Y4.44%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
EPS Next 5Y10.93%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.58%
Revenue Next 2Y4.08%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.72%
EBIT Next 3Y11.49%
EBIT Next 5Y11.55%
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 5 / 10 to MDO.DE.
What is the valuation status for MDO stock?
ChartMill assigns a valuation rating of 2 / 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 26.48 and the Price/Book (PB) ratio is -103.82.
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%.