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%)284.77+0.80%
Buy price
277.50
Target price295.00
Sell price271.00
P/E TTM22.48
P/E27.32
Confidence70%
Risk score50/100
AI Summary
The stock is range-bound ($275-$295) and currently trading near the upper end of the range with overbought short-term indicators, offering poor risk/reward for new capital. Existing positions should be held with a stop-loss below $272, while new buyers should wait for a pullback to the $275-$280 support zone for a better entry.

Alpha Score

0-10
  • Trend（Score 0/10）

    No summary available

  • Valuation（Score 3/10）

    The current price of $284.77 sits near the upper end of the reasonable valuation range of $239.00-$298.75, which is derived from applying a P/E range of 20x-25x to the 2025 EPS of $11.95. The TTM P/E ratio of 22.48x is at the higher end of its reasonable historical range, and the fundamental target price is calculated at $280.83 based on a P/E of 23.5x.

  • Financial strength（Score 5/10）
    The company maintains adequate short-term liquidity but has a Debt-to-Asset Ratio of 102.14%, indicating liabilities exceed assets and resulting in negative shareholder equity. This capital structure distorts key ratios like the negative P/B and ROE, but is common for mature, cash-generative companies that return capital to shareholders.
  • Profitability（Score 8/10）
    McDonald's demonstrates strong and stable core profitability with positive revenue growth, exceptionally high and stable profit margins characteristic of its franchised business model, and a healthy Return on Assets (ROA) of 14.90% (TTM).
  • Sentiment（Score 0/10）
    No summary available
Latest price
$284.77+0.80%
Market cap202.33B
P/E TTM22.48
P/E27.32
Volume4.55M
Turnover1.29B