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McDonald's Corp
NYSE:MCD

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McDonald's Corp Logo
McDonald's Corp
NYSE:MCD
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Price: 298.74 USD 0.33%
Updated: Feb 26, 2024

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 210.31 USD. Compared to the current market price of 298.74 USD, McDonald's Corp is Overvalued by 30%.

Key Points:
MCD Intrinsic Value
Base Case
210.31 USD
Overvaluation 30%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
McDonald's Corp

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Fundamental Analysis

McDonald's Forecasts Moderate 2024 Growth Amid Headwinds
2023-Q4 Earnings Call

McDonald's Forecasts Moderate 2024 Growth Amid Headwinds

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.

Financials

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
PP&E 38.4B
Other Non-Current Assets 9.7B
Current Liabilities 6.9B
Other Current Liabilities 6.9B
Non-Current Liabilities 54B
Long-Term Debt 37.2B
Other Non-Current Liabilities 16.8B
Efficiency
Fundamental Scores

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.

55/100
Profitability
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 54/100. The higher the solvency score, the more solvent the company is.

Low D/E
High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
54/100
Solvency
Score

McDonald's Corp's solvency score is 54/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

MCD Price Targets Summary
McDonald's Corp

Wall Street analysts forecast MCD stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for MCD is 333.09 USD with a low forecast of 301.99 USD and a high forecast of 374.85 USD.

Lowest
Price Target
301.99 USD
1% Upside
Average
Price Target
333.09 USD
11% Upside
Highest
Price Target
374.85 USD
25% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

MCD Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

MCD Price
McDonald's Corp

1M 1M
+2%
6M 6M
+6%
1Y 1Y
+13%
3Y 3Y
+51%
5Y 5Y
+80%
10Y 10Y
+299%
Annual Price Range
298.74
52w Low
246.19
52w High
300.53
Price Metrics
Average Annual Return 12.72%
Standard Deviation of Annual Returns 12.89%
Max Drawdown -37%
Shares Statistics
Market Capitalization 216B USD
Shares Outstanding 722 142 016
Percentage of Shares Shorted 1.11%

MCD Return Decomposition
Main factors of price return

What is price return decomposition?

MCD News

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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.

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Sentiment Analysis
McDonald's Corp

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Company Profile

McDonald's Corp Logo
McDonald's Corp

Country

United States of America

Industry

Hotels, Restaurants & Leisure

Market Cap

216B USD

Dividend Yield

2.23%

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

ILLINOIS
Chicago
110 N Carpenter St
+16306233000.0
https://www.mcdonalds.com/us/en-us.html

IPO

1965-04-21

Employees

200 000

Officers

President, CEO & Director
Mr. Christopher J. Kempczinski
Executive VP & Global CFO
Mr. Ian Frederick Borden
Executive VP & Global Chief Information Officer
Mr. Brian S. Rice
Executive VP, Global Chief Legal Officer & Corporate Secretary
Ms. Desiree Ralls-Morrison
President of McDonald's USA
Mr. Joseph Erlinger
Senior VP & Investor Relations Officer
Mr. Mike Flores
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Executive VP and Global Chief Marketing Officer & New Business Ventures
Ms. Morgan Flatley
Executive VP & Global Chief People Officer
Ms. Heidi B. Capozzi
Executive VP & President at International Operated Markets
Ms. Jill McDonald
Managing Director of McDonald's Hungary
Radek Janalik
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See Also

Discover More
What is the Intrinsic Value of one MCD stock?

The intrinsic value of one MCD stock under the Base Case scenario is 210.31 USD.

Is MCD stock undervalued or overvalued?

Compared to the current market price of 298.74 USD, McDonald's Corp is Overvalued by 30%.