McDonalds Stock Analysis (NYSE:MCD)

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$129 $0.1 (0.08%) MCD stock closing price Mar 23, 2017 (Closing)
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McDonalds
Updated on : Mar 23, 2017
previous close
MCD 129 (0%)
S&P 500 2346 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Food and Restaurants
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.8%
Operating Profit
Operating Margin:
31.5%
Sector Average:
7.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$814.9M
Net Income:
$1.19B
Dividend Yield
MCD dividend yield:
2.8%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
Recent Growth
Long Term Growth
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MCD PS :
4.3
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
21%
Return on Equity:
300.2%
Free Cash Flow Margin:
3.8%
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McDonalds Analysis Video

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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.

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