McDonalds Stock Analysis (NYSE:MCD)

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$122.26 $0.08 (0.07%) MCD stock closing price Jan 20, 2017 (Closing)
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McDonalds
Updated on : Jan 20, 2017
previous close
MCD 122.3 (0%)
S&P 500 2271.3 (0%)
Closing Price On: Jan 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Food and Restaurants
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.1%
Operating Profit
Operating Margin:
30.7%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$2.25B
Net Income:
$1.28B
Dividend Yield
MCD dividend yield:
2.91%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
FCF Margin
Recent Growth
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MCD PS :
4.2
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.5%
Free Cash Flow Margin:
28.7%
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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 (3.3/5)

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.

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