McDonald's Corp
NYSE:MCD
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McDonald's Corp
NYSE:MCD
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Matsui Securities Co Ltd
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Intrinsic Value
The intrinsic value of McDonald's Corp (MCD) under the Base Case is 255.868 USD per share.
Compared with the current market price of 244.294 USD, the stock appears
Undervalued by 5% .
The intrinsic value is calculated using the DCF method.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What McDonald's Does
McDonald’s is one of the world’s largest restaurant chains. It sells a familiar menu of burgers, fries, breakfast items, chicken, drinks, and desserts through company-owned restaurants and, more importantly, through franchised locations run by independent operators. Most customers are everyday consumers looking for quick, low-cost meals and drive-thru convenience.
- Headquarters
- United States of America US
- Employees
- 150 000
- IPO date
- Apr 21, 1965
McDonald's has a wide economic moat
Buying food and packaging in enormous quantities gives McDonald’s lower costs than smaller rivals, while its brand supports pricing power and attracts restaurant owners willing to pay ongoing fees. Restaurant owners also invest in locations, equipment and training that would be costly to replace if they moved to another chain. Together, these advantages make its profits difficult for competitors to take away.
Read the full moat analysisLatest Earnings Call
McDonald’s blamed U.S. weakness on value, operations and marketing execution, while outlining corrective actions and previewing its McDonald’s > NEXT growth strategy.
- EPS
- $3.38
- Expected
- $3.32
- Surprise
- +1.8%
- Stock, day of the call
- +1.2%
Revenue & Expenses Breakdown
McDonald's Corp
Earnings Waterfall
McDonald's Corp
The intrinsic value for McDonald's Corp (MCD) under the Base Case is 255.868 USD.
Compared with the current market price of 244.294 USD, the stock appears Undervalued by 5% .