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McDonald's Corp MCD

Morningstar Rating
$282.00 −0.11 (0.04%)
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Company Report

McDonald's Poised for Growth Inflection as Unit Development and Operational Initiatives Take Effect

McDonald's' strategy, as laid out at its most recent investor day in December 2023, emphasizes its competitive strengths through an "MCD" framework: relevant marketing, core menu development, and the four Ds: digital, drive-thru, delivery, and development. The firm's approach strikes us as cogent, and appears to be meeting the evolving needs of today's restaurant consumer.

Price vs Fair Value

MCD is trading at a 11% discount.
Price
$278.62
Fair Value
$475.00
Uncertainty
Low
1-Star Price
$414.00
5-Star Price
$187.30
Economic Moat
Wdrln
Capital Allocation
Bjygbcy

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

Wage inflation, particularly in the U.S., could result in an increase in price competition, additional investments in automation, and a shift toward relatively cheaper substitutes in the food-at-home category.

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News

Trading Information

Previous Close Price
$282.11
Day Range
$281.20283.35
52-Week Range
$245.77302.14
Bid/Ask
$281.80 / $281.90
Market Cap
$203.60 Bil
Volume/Avg
1.2 Mil / 3.1 Mil

Key Statistics

Price/Earnings (Normalized)
23.62
Price/Sales
8.10
Dividend Yield (Trailing)
2.26%
Dividend Yield (Forward)
2.37%
Total Yield
3.76%

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
QSR
YUM
Price/Earnings (Normalized)
23.6224.5826.68
Price/Book Value
8.82
Price/Sales
8.105.165.53
Price/Cash Flow
21.2523.2323.10
Price/Earnings
MCD
QSR
YUM

Financial Strength

Metric
MCD
QSR
YUM
Quick Ratio
1.030.880.99
Current Ratio
1.161.011.26
Interest Coverage
8.603.374.54
Quick Ratio
MCD
QSR
YUM

Profitability

Metric
MCD
QSR
YUM
Return on Assets (Normalized)
16.74%6.44%24.79%
Return on Equity (Normalized)
54.01%
Return on Invested Capital (Normalized)
21.67%9.94%55.35%
Return on Assets
MCD
QSR
YUM
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