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McDonald's Corp MCD

Morningstar Rating
$268.49 +0.99 (0.37%)
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Company Report

Price vs Fair Value

MCD is trading within a range we consider fairly valued.
Price
$268.49
Fair Value
$749.00
Uncertainty
Low
1-Star Price
$333.00
5-Star Price
$466.00
Economic Moat
Kwnp
Capital Allocation
Kkzysrkvy

Bulls Say, Bears Say

Bulls

With a modernized restaurant real estate footprint after $9 billion in remodeling investments, McDonald’s is well positioned to take advantage of evolving digital ordering habits.

Bears

Franchise economics could deteriorate if commodity and wage inflation continue to outpace sales growth, particularly in markets like California. This could blunt development appetite for new store growth.

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News

Trading Information

Previous Close Price
$267.50
Day Range
$266.06268.93
52-Week Range
$245.73302.39
Bid/Ask
$267.22 / $268.49
Market Cap
$193.50 Bil
Volume/Avg
41,367 / 3.3 Mil

Key Statistics

Price/Earnings (Normalized)
22.36
Price/Sales
7.61
Dividend Yield (Trailing)
2.39%
Dividend Yield (Forward)
2.50%
Total Yield
4.13%

Company Profile

McDonald’s is the largest restaurant owner-operator in the world, with 2023 system sales of $130 billion across nearly than 42,000 stores and 115 markets. McDonald’s pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Large Core
Total Number of Employees
150,000

Competitors

Valuation

Metric
MCD
YUM
QSR
Price/Earnings (Normalized)
22.3626.0523.25
Price/Book Value
7.95
Price/Sales
7.615.564.74
Price/Cash Flow
19.9722.5721.01
Price/Earnings
MCD
YUM
QSR

Financial Strength

Metric
MCD
YUM
QSR
Quick Ratio
0.631.130.93
Current Ratio
0.831.491.08
Interest Coverage
8.464.663.48
Quick Ratio
MCD
YUM
QSR

Profitability

Metric
MCD
YUM
QSR
Return on Assets (Normalized)
16.58%24.93%6.38%
Return on Equity (Normalized)
51.90%
Return on Invested Capital (Normalized)
21.45%56.97%9.46%
Return on Assets
MCD
YUM
QSR
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Restaurants Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CMG
Chipotle Mexican Grill IncJnrwcvwspTzwzb$87.4 Bil
SBUX
Starbucks CorpMnhsmldyckZdb$83.3 Bil
CMPGY
Compass Group PLC ADRGfqxtfhyHnbsmb$48.6 Bil
YUM
Yum Brands IncLzbrpwsjzYfgp$38.6 Bil
QSR
Restaurant Brands International IncDkzbwpxwWlkxf$23.2 Bil
DPZ
Domino's Pizza IncVchsrbxfGfxq$18.0 Bil
DRI
Darden Restaurants IncFhmrmfkmvFljhg$17.7 Bil
YUMC
Yum China Holdings IncByfpckllCvgh$14.5 Bil
WING
Wingstop IncDxdknxnrcYczmv$11.6 Bil

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