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 (3.4/5)
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.