-0.56%
-0.41%
-1.17%
8.78%
-1.37%
11.27%
34.93%
AI Spotlight on MCD
Company Description
McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally.Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes, and other sandwiches.As of December 31, 2021, the company operated 40,031 restaurants.
McDonald's Corporation was founded in 1940 and is headquartered in Chicago, Illinois.
Market Data
| Last Price | 288.7 |
| Change Percentage | -0.56% |
| Open | 289.83 |
| Previous Close | 290.32 |
| Market Cap ( Millions) | 206888 |
| Volume | 1778282 |
| Year High | 317.9 |
| Year Low | 243.53 |
| M A 50 | 291.47 |
| M A 200 | 280.74 |
Financial Ratios
| FCF Yield | 3.18% |
| Dividend Yield | 2.35% |
| ROE | -168.78% |
| Debt / Equity | -1031.70% |
| Net Debt / EBIDTA | 388.55% |
| Price To Book | -39.97 |
| Price Earnings Ratio | 25.1 |
| Price To FCF | 31.45 |
| Price To sales | 7.98 |
| EV / EBITDA | 19.29 |
News
- Jan -30 - McDonald's (MCD) Rises But Trails Market: What Investors Should Know
- Jan -28 - McDonald's (MCD) Stock Slides as Market Rises: Facts to Know Before You Trade
- Jan -28 - McDonald's Committed To Winning The Value Battle (Q4 Earnings Preview)
- Jan -28 - Restaurants are rebounding — but Starbucks and McDonald's still have work to do
- Jan -27 - McDonald's Reveals Final Rosters for the 48th Annual All American Games
- Jan -27 - Should Dividend Stock Investors Buy McDonald's Stock at Current Prices?
- Jan -25 - SVN McDonald & Co. Releases “The WEC Effect” Report: Exploring the Impact of the World Equestrian Center on Marion County Land Values
- Jan -22 - McDonald's Extends Partnership With Cognizant, Boosts Digital Growth
- Jan -22 - These 6 Stocks Will Be The Biggest Losers In Trump 2.0
- Jan -21 - Here's Why McDonald's (MCD) Gained But Lagged the Market Today
- Jan -21 - Cognizant and McDonald's Renew Strategic Partnership to Transform Global Enterprise Systems, Focus on AI & Cloud Solutions
- Jan -21 - Can the 8 Worst-Performing Dow Jones Stocks in 2024 Beat the S&P 500 in 2025?
- Jan -17 - McDonald's Stock's Earnings Estimates Going Down: Hold or Fold?
- Jan -16 - The Near-Perfect Dividend Portfolio With 10 Sleep-Well-At-Night Gems
- Jan -15 - If You Bought 1 Share of McDonald's at Its IPO, Here's How Many Shares You Would Own Now
- Jan -14 - Why McDonald's Is About to Become a $300 Stock Again
- Jan -14 - Why is McDonald's being sued over its Latino scholarships?
- Jan -13 - McDonald's (MCD) Outperforms Broader Market: What You Need to Know
- Jan -13 - McDonald's sued over Latino scholarships despite rolling back DEI
- Jan -12 - 2 Dividend Stocks to Double Up on Right Now
Business Breakdown
Expected Mid-Term Growth
McDonald's Corporation experienced strong revenue growth primarily driven by expansion into new markets, menu innovations to cater to changing consumer preferences, and effective marketing strategies. The company's focus on digital initiatives and delivery services also contributed to its growth by increasing convenience for customers. Additionally, strategic acquisitions such as Dynamic Yield to enhance its technology capabilities and Apprente for voice recognition technology have played a key role in driving growth and improving customer experiences.
Segment n°1 -> Franchised Restaurants
Expected Growth : 4.5 %
What the company do ?
Why we expect these perspectives ?
McDonald's franchised restaurants' 4.5% growth is driven by increased same-store sales, successful marketing campaigns, and strategic menu innovation. Additionally, the company's focus on digital transformation, including mobile ordering and self-service kiosks, has enhanced customer experience and driven sales. Furthermore, the expansion of delivery services and strategic partnerships have also contributed to the growth.
Segment n°2 -> Company-operated Restaurants
Expected Growth : 5.5 %
What the company do ?
Why we expect these perspectives ?
McDonald's company-operated restaurants' 5.5% growth driven by successful menu innovation, digital transformation, and marketing efforts, resulting in increased customer traffic and average check growth. Additionally, strategic refranchising and restaurant remodels have improved operational efficiency and customer experience.
Segment n°3 -> Other
Expected Growth : 4.0 %
What the company do ?
Why we expect these perspectives ?
McDonald's 'Other' segment growth is driven by expansion in international markets, particularly in Asia, where the brand is gaining popularity. Additionally, the company's focus on digital transformation, including mobile ordering and self-service kiosks, is contributing to increased sales. Furthermore, strategic partnerships and menu innovation are also supporting growth in this segment.
Mcdonald'S Corporation Products
| Product Range | What is it ? |
|---|---|
| Big Mac | A classic hamburger consisting of two beef patties, special sauce, lettuce, cheese, pickles, and onions on a sesame seed bun. |
| French Fries | Thinly cut deep-fried potatoes seasoned with salt, offering a crispy and savory side dish option. |
| McFlurry | A dessert item comprised of soft-serve ice cream mixed with various candies, cookies, or syrups, providing a sweet and creamy treat. |
McDonald's Corporation's Porter Forces
Threat Of Substitutes
There are various fast-food chains and restaurants offering similar products as McDonald's, which creates moderate pressure.
Bargaining Power Of Customers
Customers have relatively high bargaining power due to many alternative dining options and the ability to easily switch to other brands.
Bargaining Power Of Suppliers
McDonald's has a large scale and established relationships with suppliers, giving them more power in negotiations.
Threat Of New Entrants
While the fast-food industry has relatively low entry barriers, McDonald's strong brand presence and economies of scale deter new entrants.
Intensity Of Rivalry
The fast-food industry is highly competitive, with many large and small players constantly vying for market share, leading to intense rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 113.32% |
| Debt Cost | 3.95% |
| Equity Weight | -13.32% |
| Equity Cost | 7.48% |
| WACC | 3.47% |
| Leverage | -850.56% |
McDonald's Corporation : Quality Control
McDonald's Corporation passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| YUM | YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Taco Bell Division, the Pizza Hut … |
| PHM | PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. … |
| BKNG | Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; … |
| SBUX | Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its … |
| CMG | Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of February 15, 2022, it owned and operated approximately 3,000 restaurants in the United … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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PulteGroup
A-Score
1-Year Total Return ->
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Booking
A-Score
1-Year Total Return ->
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Yum!
A-Score
1-Year Total Return ->
4
McDonald's
A-Score
1-Year Total Return ->
5
Starbucks
A-Score
1-Year Total Return ->
6
