McDonald`s Corp
Exchange: NYSESector: Consumer CyclicalIndustry: Restaurants
Ronald McDonald House® is an independent, nonprofit 501(C)(3) organization that cares for families when they have children who are ill or injured. Through a global network of 250+ independently operated Chapters in 60+ countries and regions, we surround families with the resources, services and support they need, removing barriers so they can be at the heart of their child's care and ensure the best possible health outcomes.
Did you know?
MCD's revenue grew at a 3.9% CAGR over the last 6 years.
Current Price
$307.14
-0.05%GoodMoat Value
$283.28
7.8% overvaluedProfile
Valuation (TTM)
Market Cap$218.73B
P/E25.54
EV—
P/B—
Shares Out712.15M
P/Sales8.14
Revenue$26.89B
EV/EBITDA18.58
McDonald`s Corp (MCD) Stock Analysis
GoodMoat Analysis
McDonald's possesses a wide and durable moat, scoring highly on brand, scale, and franchise model advantages. However, its current valuation appears full, trading above the GoodMoat target price with a P/E of 25.9x and a modest FCF yield of 3.3%. This combination of strong business quality but elevated price makes it an interesting candidate for further research, but likely only at a more favourable entry point.
Read full analysis
McDonald's operates the world's largest fast-food restaurant chain, primarily through a highly profitable franchise model where it earns royalties from franchisees. Applying the GoodMoat framework, the company scores exceptionally high on Moat Identification. It demonstrates a powerful brand and cultural relevance, significant scale privilege in global real estate and supply chain, and high switching costs for both franchisees and customers. Its franchise model also creates an asset-light operation with strong cash flow conversion, aligning with several Quality Indicators like its robust 46.1% operating margin and 31.8% profit margin. According to the Decision Framework, this strong moat and quality profile means the stock passes the initial gate for further valuation analysis. The valuation assessment, however, suggests caution. The stock trades at $311.7, above the GoodMoat target of $283.28, implying a marginal or negative margin of safety. Key multiples like a P/E of 25.9x and a Free Cash Flow Yield of 3.3% indicate the market is pricing in near-perfect execution. While the 9.7% YoY revenue growth is solid, it may not justify such a premium for a mature business. For a value investor, McDonald's represents a classic case of a wonderful business at a less-than-wonderful price, warranting deeper investigation but likely requiring patience for a more attractive valuation. Analysis based on data as of 2024-05-15.
Market Cap$218.73B
Current Price$307.14
P/E Ratio25.54
Forward P/E—
PEG Ratio3.27
EPS$11.95
Book Value$-2.51
P/B Ratio—
MCD Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 3.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 54.0B
Revenue
21.4B
FY19
19.2B
FY20
23.2B
FY21
23.2B
FY22
25.5B
FY23
25.9B
FY24
26.9B
FY25
Net Income
6.0B
FY19
4.7B
FY20
7.5B
FY21
6.2B
FY22
8.5B
FY23
8.2B
FY24
8.6B
FY25
MCD 52-Week Range
$280.66
$339.16
50-Day MA: $320.48200-Day MA: $305.67
Did you know?
MCD's revenue grew at a 3.9% CAGR over the last 6 years.
McDonald`s Corp (MCD) Financial Summary
McDonald`s Corp (MCD) is a Consumer Cyclical company in the Restaurants industry, listed on NYSE. The stock currently trades at $307.14 with a market capitalization of $218.73B.
Key valuation metrics include a P/E ratio of 25.54, and EPS of $11.95. The company reports a profit margin of 31.8%.
MCD Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $218.73B |
| P/E Ratio | 25.54 |
| EPS | $11.95 |
| P/S Ratio | 8.14 |
| EV/EBITDA | 18.58 |
| Dividend Yield | 2.34% |
| Profit Margin | 31.8% |
MCD Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $21.36B | $6.03B |
| FY20 | $19.21B | $4.73B |
| FY21 | $23.22B | $7.55B |
| FY22 | $23.18B | $6.18B |
| FY23 | $25.49B | $8.47B |
| FY24 | $25.92B | $8.22B |
| FY25 | $26.89B | $8.56B |
McDonald`s Corp (MCD) Valuation
Based on GoodMoat's DCF model, McDonald`s Corp has a fair value estimate of $283.28. At the current price of $307.14, the stock appears 8.4% overvalued relative to our intrinsic value estimate.
MCD Quality Indicators
McDonald`s Corp maintains a profit margin of 31.8% and an operating margin of 46.1%. The current ratio is 0.95.
About McDonald`s Corp
Ronald McDonald House® is an independent, nonprofit 501(C)(3) organization that cares for families when they have children who are ill or injured. Through a global network of 250+ independently operated Chapters in 60+ countries and regions, we surround families with the resources, services and support they need, removing barriers so they can be at the heart of their child's care and ensure the best possible health outcomes.
MCD Free Cash Flow
McDonald`s Corp generated $7.32B in trailing twelve-month free cash flow, representing an FCF yield of 3.34%. This moderate FCF yield indicates reasonable cash generation.
MCD Shares Outstanding
McDonald`s Corp has 0.71 billion shares outstanding at a share price of $307.14, giving it a market capitalization of $218.73B.
MCD Recent Insider Trades
Recent insider transactions at McDonald`s Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Erlinger Joseph M. (President, McDonald's USA) | SELL | 333 | $104385.51 |
| Baroni Dario (President, IDL) | SELL | 600 | $194262.00 |
| Erlinger Joseph M. (President, McDonald's USA) | SELL | 2,626 | $862220.84 |