McDonalds Stock Analysis (NYSE:MCD)
McDonalds Analysis Video
View McDonalds stock analysis video. This is our MCD analyst opinion covering the buy and sell arguments for MCD stock.
McDonald's Corporation Stock Rating (3.1/5)
Our McDonalds stock opinion is based on fundamentals of the company. This McDonalds stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy MCD stock?
- McDonalds had a healthy average operating margin of 31.5% over the last 4 quarters.
- Net margins came in at average 18.9% for McDonalds over the last twelve months.
- McDonalds generates a high return on invested capital of 21%.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for McDonalds at 300.2%.
Should you sell MCD stock?
- McDonalds sales declined by -4.9% year on year in 2016 Q4.
- Sales declined by -1.8% annually over the last 5 years.
- Cash flow from operations is 0.7 times net income which is a negative signal.
- The company is trading at a price to sales multiple of 4.3, which is overvalued in comparison to the Retail-Food and Restaurants industry average multiple of 0.7.