McDonald's Corporation

MCD

292.68 (0.00%) 0.00

209.74(B)

Consumer Discretionary

Hotels Restaurants and Leisure

McDonald's Corporation operates and franchises restaurants under the McDonald’s brand in the United States and internationally. It offers food and beverages including hamburgers and cheeseburgers various chicken sandwiches fries shakes desserts sundaes cookies pies soft drinks coffee and other beverages; and full or limited breakfast as well as sells various other products during limited-time promotions. The company owns and operates under various structures comprising conventional franchise developmental license or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago Illinois.

Holdings:

Cost basis:

McDonald's Corporation (MCD) price target and intrinsic value estimate

MCD's fair price estimate is $252.8

This valuation is based on a fair P/E of 22.5 and EPS estimates of $11.22

The median analyst price target for MCD is $325.0.

Analyst price targets range from $280.0 to $360.0

Is MCD overvalued or undervalued?

MCD is currently trading at $292.68

MCD is overvalued by 16% using the pevaluation method.

MCD is undervalued by 10% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $189.6

Median $252.8

High $316.0

Fair P/E

Margin of safety

Analyst valuation

Low $280.0

Median $325.0

High $360.0

Strong Buy6

Buy14

Hold14

Sell0

Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF

Discount rate:

10%

Terminal rate:

Growth phase length:

Growth phase rate:

10%

Economic moat: Wide

Overview

Market data

Market cap:$209.74(B)

Enterprise value:$261.97(B)

Total Equity:$-5.18(B)

Shares outstanding:716.62(M)

Div. yield:2.28%

P/S:8.13

P/E:25.56

P/FCF:31.88

P/B:N/A

EPS:$11.4

FCF per share:$9.2

Dividend per share:$6.7

Income (TTM)

Revenue$25.94(B)

Gross profit$14.69(B)

EBITDA$13.85(B)

Net income$8.25(B)

Gross margin56.6%

Net margin31.8%

Balance sheet

Total assets$56.17(B)

Total liabilities$61.35(B)

Cash & Short-term inv.$1.23(B)

Long-term debt$39.03(B)

Debt issued$4.25(B)

Debt repaid$-2.71(B)

Cash flow (TTM)

FCF$6.58(B)

CapEx$-2.73(B)

Dividends paid$-4.81(B)

Stock issued$301.80(M)

Stock repurchased$-3.17(B)

Stock-based comp.$165.20(M)

Future Growth

Revenue

CAGR: 5.6%

FY+1$26.07(B)

FY+2$27.04(B)

FY+3$28.60(B)

FY+4$29.98(B)

FY+5$32.38(B)

Net Income

CAGR: 6.6%

FY+1$8.51(B)

FY+2$8.95(B)

FY+3$9.55(B)

FY+4$10.11(B)

FY+5$11.00(B)

EPS

CAGR: 9.1%

FY+1$11.81

FY+2$12.61

FY+3$13.66

FY+4$14.89

FY+5$16.75

FCF per share

CAGR: 10.6%

FY+1$13.89

FY+2$15.76

FY+3$17.26

FY+4$18.79

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

FCFCFONet IncomeD&AStock-based Comp.CFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures

Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

ROICROAROCEROE

Market Cap.