McDonald's Corporation(MCD) - Stock detail

McDonald's Corporation

US
MCD
McDonald's Corporation(Listing date: 04/21/1965)

McDonald's Corporation is a company registered in Delaware. The company franchises and operates McDonald's restaurants, which offer locally relevant menus of quality food and beverages in communities across more than 100 countries. The company is primarily a franchisor and believes that franchising is crucial for delivering great-tasting food, locally relevant customer experiences, and driving profitability. Franchising enables individuals to become their own employers and maintain control over all employment-related matters, marketing, and pricing decisions, while also benefiting from the strength of McDonald's global brand, operating system, and financial resources. The company's revenues include sales from company-operated restaurants as well as fees from franchised restaurants operated by traditional franchisees, developmental licensees, and affiliates.

AI Rating

Rating methodology
Latest close (chg%)331.74-0.13%
Buy price
331.74
Target price355.00
Sell price318.00
P/E TTM27.78
P/E27.32
Confidence70%
Risk score45/100
AI Summary
McDonald's defensive franchise model, strong cash flow generation, and near-term catalysts (Big Arch Burger rollout, Ireland expansion) justify upside despite high debt levels. Technical consolidation at current levels provides entry opportunity before breakout.

Alpha Score

0-10
  • TrendScore 4/10

    McDonald's Corporation presents a mixed technical picture with bullish moving average structure but short-term consolidation and bearish momentum indicators.

  • ValuationScore 3/10

    McDonald's current PE ratios of 27-28 are above market average, suggesting modest overvaluation relative to earnings, though justified by defensive qualities and stable cash flows. PB ratio is not meaningful due to negative book value, while PS ratio of 8.77 is reasonable for a premium brand.

  • Financial strengthScore 4/10
    McDonald's exhibits mixed financial health with potential liquidity constraints (current ratio 0.95) and concerning leverage (debt-to-asset ratio 103.01%), though profitability remains robust with revenue growth of 3.72% and net income growth of 4.13%.
  • ProfitabilityScore 7/10
    McDonald's demonstrates consistent profitability with revenue growth of 3.72%, EPS growth of 4.92%, and strong margins including 57.41% gross margin and 31.85% net margin. ROA of 14.93% is strong, though ROE is distorted by capital structure.
  • SentimentScore 8/10
    McDonald's demonstrates strong competitive positioning with product innovation, strategic expansion, and value leadership amid intensifying fast-food rivalry.
Latest price
$331.74-0.13%
Market cap235.85B
P/E TTM27.78
P/E27.32
Volume2.45M
Turnover811.97M