McDonalds Stock Analysis (NYSE:MCD)

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$153.92 $0.29 (0.19%) MCD stock closing price Jul 21, 2017 (Closing)
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McDonalds
Updated on : Jul 21, 2017
previous close
MCD 153.9 (0%)
S&P 500 2472.5 (0%)
Closing Price On: Jul 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Food and Restaurants
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.3%
Operating Profit
Operating Margin:
32.8%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.54B
Net Income:
$1.21B
Dividend Yield
MCD dividend yield:
2.38%
PROS      CONS
Operating Margins
Net Margins
ROIC
FCF Margin
Recent Growth
Long Term Growth
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MCD PS :
5.2
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
21.6%
Free Cash Flow Margin:
20.8%
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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 (3.4/5)

Our McDonalds stock opinion is based on fundamentals of the company. This McDonalds stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy MCD stock?

  • McDonalds's average operating margin of 32.8% was exceptional.
  • Net margins came in at average 19.6% for McDonalds over the last twelve months.
  • McDonalds's return on invested capital of 21.6% is good.
  • The company has a healthy free cash flow margin of 20.8%.

Should you sell MCD stock?

  • McDonalds sales shrank by -3.9% year-over-year in 2017 Q1.
  • Sales declined by -2.3% annually over the last 5 years.
  • Trading at a PE ratio of 25.7, MCD stock is overvalued in comparison to industry average multiple of 17.4.
  • The company is trading at a price to sales multiple of 5.2, which is overvalued in comparison to the Retail-Food and Restaurants industry average multiple of 0.7.

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