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 (3.3/5)
Our McDonalds stock opinion is based on fundamentals of the company. This McDonalds stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy MCD stock?
- McDonalds's average operating margin of 30.7% was exceptional.
- Net margins came in at average 18.7% for McDonalds over the last twelve months.
- The operating cash flow looks good at 1.8 times the net income.
- McDonalds generates a high return on invested capital of 20.5%.
- McDonalds has a healthy FCF (Free Cash Flow) margin of 28.7%.
Should you sell MCD stock?
- McDonalds revenue saw a decline of -2.9% YoY in 2016 Q3.
- Sales declined by annually over the last 5 years.
- MCD stock is trading at a PS multiple of 4.2, which is a negative when compared to the Retail-Food and Restaurants industry average multiple of 0.8.