MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - FRA:MDO - US5801351017 - Common Stock
262 EUR
-1.8 (-0.68%)
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 56 industry peers in the Hotels, Restaurants & Leisure industry. MDO scores excellent on profitability, 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
MDO had positive earnings in the past year.
In the past year MDO had a positive cash flow from operations.
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 has a better Return On Assets (14.09%) than 92.86% of its industry peers.
With an excellent Return On Invested Capital value of 17.40%, MDO belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDO is significantly above the industry average of 11.13%.
| 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
With an excellent Profit Margin value of 32.20%, MDO belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
In the last couple of years the Profit Margin of MDO has grown nicely.
The Operating Margin of MDO (46.13%) is better than 96.43% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
MDO has a Gross Margin (57.00%) which is in line with its industry peers.
MDO's Gross Margin has improved in the last couple of years.
| 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
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.
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.
With an excellent Altman-Z score value of 4.84, MDO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
MDO has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as MDO would need 6.00 years to pay back of all of its debts.
MDO has a Debt to FCF ratio (6.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.27
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.30 indicates that MDO should not have too much problems paying its short term obligations.
MDO has a better Current ratio (1.30) than 85.71% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.29, MDO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
MDO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
Measured over the past years, MDO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
The Revenue has been growing slightly by 1.17% in the past year.
Measured over the past years, MDO shows a small growth in Revenue. The Revenue has been growing by 3.94% on average per year.
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 9.23% 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 Y5.79%
EPS Next 2Y7.04%
EPS Next 3Y7.53%
EPS Next 5Y9.23%
Revenue Next Year2.84%
Revenue Next 2Y4.21%
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
The Price/Earnings ratio is 25.51, which means the current valuation is very expensive for MDO.
Based on the Price/Earnings ratio, MDO is valued a bit cheaper than 62.50% 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 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.64, the valuation of MDO can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MDO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, MDO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 22.64 |
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 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.47 | ||
| EV/EBITDA | 18.21 |
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)4.4
PEG (5Y)3.11
EPS Next 2Y7.04%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, MDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, MDO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, MDO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
59.52% of the earnings are spent on dividend by MDO. 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 2Y7.04%
EPS Next 3Y7.53%
FRA:MDO (10/27/2025, 11:25:37 AM)
262
-1.8 (-0.68%)
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 Cap186.96B
Revenue(TTM)26.06B
Net Income(TTM)8.39B
Analysts72.38
Price Target294.64 (12.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend5.83
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)0.6%
PT rev (3m)0.3%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 22.64 | ||
| P/S | 8.33 | ||
| P/FCF | 31.47 | ||
| P/OCF | 22.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.21 |
EPS(TTM)10.27
EY3.92%
EPS(NY)11.57
Fwd EY4.42%
FCF(TTM)8.32
FCFY3.18%
OCF(TTM)11.82
OCFY4.51%
SpS31.45
BVpS-3.33
TBVpS-7.32
PEG (NY)4.4
PEG (5Y)3.11
Graham NumberN/A
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%
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 Turnover0.44
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
WACC7.66%
ROIC/WACC2.27
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 Y5.79%
EPS Next 2Y7.04%
EPS Next 3Y7.53%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%5.44%
Revenue Next Year2.84%
Revenue Next 2Y4.21%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
EBIT growth 1Y2.2%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y10.03%
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%
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 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 25.51 and the Price/Book (PB) ratio is -78.66.
Is the dividend of MCDONALD'S CORP sustainable?
The dividend rating of MCDONALD'S CORP (MDO.DE) is 6 / 10 and the dividend payout ratio is 59.52%.