McDonald's Corp
NYSE:MCD
Intrinsic Value
McDonald's Corp. engages in the operation and franchising of restaurants. [ Read More ]
The intrinsic value of one MCD stock under the Base Case scenario is 206.69 USD. Compared to the current market price of 278.58 USD, McDonald's Corp is Overvalued by 26%.
Valuation Backtest
McDonald's Corp
Run backtest to discover the historical profit from buying and selling MCD stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
McDonald's Forecasts Moderate 2024 Growth Amid Headwinds
2023-Q4 Earnings Call
Amidst a challenging environment and Middle Eastern conflict affecting consumer behavior, McDonald's projects 2024 comparable sales growth to moderate towards 3-4%, aligning with historical norms. The company anticipates nearly 2% system-wide sales growth contributed by new restaurants, targeting 50,000 outlets by 2027. Company-operated margin percentages will be pressured, closely mirroring 2023 figures. General and administrative expenses are estimated at 2.2% of system-wide sales, reflecting substantial investments in technology, digital, and Global Business Services. The operating margin is expected to be a mid to high 40%, driven by top-line growth and franchising margins. Capital expenditures are set for $2.5-$2.7 billion, prioritizing new openings. Over 2,100 global openings are planned, with robust U.S. and IOM segment growth. The IDL segment will see 1,600+ openings, including a significant expansion in China. A robust cash flow with 90% free cash flow conversion is forecasted, maintaining capital allocation for business growth and shareholder returns through dividends and stock buybacks.
Balance Sheet Decomposition
McDonald's Corp
Current Assets | 8B |
Cash & Short-Term Investments | 4.6B |
Receivables | 2.5B |
Other Current Assets | 919.1m |
Non-Current Assets | 48.2B |
Long-Term Investments | 1.1B |
PP&E | 38.4B |
Intangibles | 3B |
Other Non-Current Assets | 5.6B |
Current Liabilities | 6.9B |
Accounts Payable | 1.1B |
Accrued Liabilities | 2.8B |
Short-Term Debt | 347.6m |
Other Current Liabilities | 2.6B |
Non-Current Liabilities | 54B |
Long-Term Debt | 38.7B |
Other Non-Current Liabilities | 15.3B |
Earnings Waterfall
McDonald's Corp
Revenue
|
25.5B
USD
|
Cost of Revenue
|
-10.9B
USD
|
Gross Profit
|
14.6B
USD
|
Operating Expenses
|
-2.8B
USD
|
Operating Income
|
11.7B
USD
|
Other Expenses
|
-3.3B
USD
|
Net Income
|
8.5B
USD
|
Free Cash Flow Analysis
McDonald's Corp
What is Free Cash Flow?
MCD Profitability Score
Profitability Due Diligence
McDonald's Corp's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
Score
McDonald's Corp's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
MCD Solvency Score
Solvency Due Diligence
McDonald's Corp's solvency score is 58/100. The higher the solvency score, the more solvent the company is.
Score
McDonald's Corp's solvency score is 58/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
MCD Price Targets Summary
McDonald's Corp
According to Wall Street analysts, the average 1-year price target for MCD is 333.59 USD with a low forecast of 301.99 USD and a high forecast of 374.85 USD.
Ownership
MCD Insider Trading
Buy and sell transactions by insiders
Period | Sold | Bought | Net |
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Shareholder Return
MCD Price
McDonald's Corp
Average Annual Return | 12.55% |
Standard Deviation of Annual Returns | 12.91% |
Max Drawdown | -37% |
Market Capitalization | 201.3B USD |
Shares Outstanding | 722 051 008 |
Percentage of Shares Shorted | 1.05% |
MCD News
Last Important Events
McDonald's Corp
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
McDonald's Corp
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
McDonald's Corp. engages in the operation and franchising of restaurants. The company is headquartered in Chicago, Illinois and currently employs 200,000 full-time employees. The firm's restaurants serve a locally relevant menu of food and beverages. Its restaurants are owned and operated by independent local business owners. The firm's segments include United States (U.S.), International Operated Markets (IOM) and International Developmental Licensed Markets & Corporate (IDL). The U.S. segment focuses on Company's menu and offerings, as well as delivery and digital platforms. Its IOM segment includes its operations in markets, such as Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the United Kingdom. Its IDL segment includes its operations in markets, such as Latin America and Asia. Its digital offerings include drive thru, takeaway, delivery, curbside pick-up and dine-in. Its menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, wraps, soft drinks, coffee, McCafe beverages and other beverages.
Contact
IPO
Employees
Officers
The intrinsic value of one MCD stock under the Base Case scenario is 206.69 USD.
Compared to the current market price of 278.58 USD, McDonald's Corp is Overvalued by 26%.