Is McDonalds Stock a Good Investment?

McDonalds Investment Advice

MCD

To provide specific investment advice or recommendations on McDonalds stock, we recommend investors consider the following general factors when evaluating McDonalds. This will help you to make an informed decision on whether to include McDonalds in one of your diversified portfolios:

Examine McDonalds' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research McDonalds' leadership team and their track record. Good management can help McDonalds navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact McDonalds' business and its evolving consumer preferences.
Compare McDonalds' performance and market position to its competitors. Analyze how McDonalds is positioned in terms of product offerings, innovation, and market share.
Check if McDonalds pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about McDonalds' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in McDonalds stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if McDonalds is a good investment.

Sell

Buy

Strong Hold

Macroaxis provides trade recommendations on McDonalds to complement and cross-verify current analyst consensus on McDonalds. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure McDonalds is not overpriced, please verify all McDonalds fundamentals, including its shares owned by insiders, gross profit, debt to equity, as well as the relationship between the price to earning and cash and equivalents . Given that McDonalds has a price to sales of 8.18 X, we recommend you to check McDonalds market performance and probability of bankruptcy to ensure the company can sustain itself for the next few years given your last-minute risk tolerance and investing horizon.

Market Performance	Insignificant	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine McDonalds Stock

Researching McDonalds' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 73.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.66. McDonalds recorded earning per share (EPS) of 11.39. The entity last dividend was issued on the 2nd of December 2024. The firm had 2:1 split on the 8th of March 1999.

To determine if McDonalds is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding McDonalds' research are outlined below:

	About 73.0% of the company shares are owned by institutional investors
	Latest headline from independent.co.uk: Disposition of 1054 shares by Tiffanie Boyd of McDonalds subject to Rule 16b-3

McDonalds Quarterly Liabilities And Stockholders Equity

56.17 Billion

McDonalds uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in McDonalds. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to McDonalds' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	23rd of April 2024 Upcoming Quarterly Report	View
	25th of July 2024 Next Financial Report	View
	31st of March 2024 Next Fiscal Quarter End	View
	3rd of February 2025 Next Fiscal Year End	View
	31st of December 2023 Last Quarter Report	View
	31st of December 2023 Last Financial Announcement	View

Earnings surprises can significantly impact McDonalds' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises McDonalds' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-07-28	2020-06-30	0.74	0.66	-0.08	10
2008-04-22	2008-03-31	0.7	0.81	0.11	15
2015-10-22	2015-09-30	1.27	1.4	0.13	10
2005-04-21	2005-03-31	0.43	0.56	0.13	30
2017-04-25	2017-03-31	1.33	1.47	0.14	10
2021-07-28	2021-06-30	2.11	2.37	0.26	12
2023-04-25	2023-03-31	2.33	2.63	0.3	12
2021-10-27	2021-09-30	2.46	2.76	0.3	12

McDonalds Target Price Consensus

McDonalds target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. McDonalds' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Buy

Most McDonalds analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand McDonalds stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of McDonalds, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

McDonalds Target Price Projection

McDonalds' current and average target prices are 296.01 and 300.26, respectively. The current price of McDonalds is the price at which McDonalds is currently trading. On the other hand, McDonalds' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

McDonalds Market Quote on 30th of November 2024

Low Price	294.02	Odds
High Price	297.05	Odds

296.01 Target Price

Analyst Consensus On McDonalds Target Price

Low Estimate	273.24	Odds
High Estimate	333.29	Odds

300.26

Historical

Lowest Forecast 273.24

Target Price 300.26

Highest Forecast 333.29

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on McDonalds and the information provided on this page.

McDonalds Analyst Ratings

McDonalds' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about McDonalds stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of McDonalds' financials, market performance, and future outlook by experienced professionals. McDonalds' historical ratings below, therefore, can serve as a valuable tool for investors.

Know McDonalds' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as McDonalds is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading McDonalds backward and forwards among themselves. McDonalds' institutional investor refers to the entity that pools money to purchase McDonalds' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Northern Trust Corp	2024-09-30	8 M
T. Rowe Price Associates, Inc.	2024-06-30	7.6 M
Royal Bank Of Canada	2024-06-30	7.3 M
Legal & General Group Plc	2024-06-30	6.1 M
Bank Of New York Mellon Corp	2024-06-30	5.9 M
Ubs Group Ag	2024-06-30	5.7 M
Charles Schwab Investment Management Inc	2024-09-30	5.6 M
Nuveen Asset Management, Llc	2024-06-30	5.5 M
Ameriprise Financial Inc	2024-06-30	4.8 M
Vanguard Group Inc	2024-09-30	69.6 M
Blackrock Inc	2024-06-30	50.2 M

Note, although McDonalds' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

McDonalds' market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 212.13 B.

Market Cap

183.41 Billion

McDonalds' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.16	0.09
Return On Capital Employed	0.24	0.15
Return On Assets	0.15	0.09
Return On Equity	(1.80)	(1.71)

The company has Net Profit Margin of 0.32 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.47 %, which entails that for every 100 dollars of revenue, it generated $0.47 of operating income.

Determining McDonalds' profitability involves analyzing its financial statements and using various financial metrics to determine if McDonalds is a good buy. For example, gross profit margin measures McDonalds' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of McDonalds' profitability and make more informed investment decisions.

McDonalds' Earnings Breakdown by Geography

Please note, the presentation of McDonalds' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, McDonalds' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of McDonalds' management manipulating its earnings.

Evaluate McDonalds' management efficiency

McDonalds has Return on Asset of 0.1363 % which means that on every $100 spent on assets, it made $0.1363 of profit. This is way below average. McDonalds' management efficiency ratios could be used to measure how well McDonalds manages its routine affairs as well as how well it operates its assets and liabilities. As of November 30, 2024, Return On Tangible Assets is expected to decline to 0.09. In addition to that, Return On Capital Employed is expected to decline to 0.15. At present, McDonalds' Total Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 10.5 B, whereas Non Current Assets Total are forecasted to decline to about 25.5 B.

	Last Reported	Projected for Next Year
Book Value Per Share	(6.47)	(6.14)
Tangible Book Value Per Share	(10.64)	(10.11)
Enterprise Value Over EBITDA	19.01	9.77
Price Book Value Ratio	(45.86)	(43.56)
Enterprise Value Multiple	19.01	9.77
Price Fair Value	(45.86)	(43.56)
Enterprise Value	216.2 B	227 B

McDonalds showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.

Dividend Yield

0.024

Forward Dividend Yield

0.024

Forward Dividend Rate

7.08

Beta

0.735

Basic technical analysis of McDonalds Stock

As of the 30th of November, McDonalds secures the mean deviation of 0.7121, and Risk Adjusted Performance of 0.0465. Concerning fundamental indicators, the technical analysis model lets you check available technical drivers of McDonalds, as well as the relationship between them. Please verify McDonalds coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if McDonalds is priced favorably, providing market reflects its recent price of 296.01 per share. Given that McDonalds has jensen alpha of (0.01), we recommend you to check McDonalds's last-minute market performance to make sure the company can sustain itself next year.

McDonalds' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific McDonalds insiders, such as employees or executives, is commonly permitted as long as it does not rely on McDonalds' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases McDonalds insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Tiffanie Boyd over a week ago Disposition of 1054 shares by Tiffanie Boyd of McDonalds subject to Rule 16b-3
		Thompson Donald over a year ago Exercise or conversion by Thompson Donald of 41800 shares of McDonalds subject to Rule 16b-3

McDonalds' Outstanding Corporate Bonds

McDonalds issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. McDonalds uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most McDonalds bonds can be classified according to their maturity, which is the date when McDonalds has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	MCDONALDS P 6375 Corp Bond US580135BY65	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	MCDONALDS P MEDIUM Corp Bond US58013MEC47	View
	MCDONALDS P MEDIUM Corp Bond US58013MEH34	View
	MCDONALDS P MEDIUM Corp Bond US58013MEF77	View
	MCDONALDS PORATION MTN Corp Bond US58013MFN92	View
	US58013MFL37 Corp Bond US58013MFL37	View
	MCDONALDS PORATION MTN Corp Bond US58013MFM10	View

View All McDonalds Corporate Bonds

Understand McDonalds' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing McDonalds' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0465
	Market Risk Adjusted Performance	0.1133
	Mean Deviation	0.7121
	Semi Deviation	1.29
	Downside Deviation	1.42
	Coefficient Of Variation	1752.47
	Standard Deviation	1.07
	Variance	1.15
	Information Ratio	(0.07)
	Jensen Alpha	(0.01)
	Total Risk Alpha	(0.13)
	Sortino Ratio	(0.05)
	Treynor Ratio	0.1033
	Maximum Drawdown	6.7
	Value At Risk	(1.18)
	Potential Upside	1.46
	Downside Variance	2.01
	Semi Variance	1.66
	Expected Short fall	(0.65)
	Skewness	(2.00)
	Kurtosis	8.02

	Risk Adjusted Performance	0.0465
	Market Risk Adjusted Performance	0.1133
	Mean Deviation	0.7121
	Semi Deviation	1.29
	Downside Deviation	1.42
	Coefficient Of Variation	1752.47
	Standard Deviation	1.07
	Variance	1.15
	Information Ratio	(0.07)
	Jensen Alpha	(0.01)
	Total Risk Alpha	(0.13)
	Sortino Ratio	(0.05)
	Treynor Ratio	0.1033
	Maximum Drawdown	6.7
	Value At Risk	(1.18)
	Potential Upside	1.46
	Downside Variance	2.01
	Semi Variance	1.66
	Expected Short fall	(0.65)
	Skewness	(2.00)
	Kurtosis	8.02

Consider McDonalds' intraday indicators

McDonalds intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of McDonalds stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	16890.75
	Daily Balance Of Power	0.3069
	Rate Of Daily Change	1.0
	Day Median Price	295.53
	Day Typical Price	295.69
	Price Action Indicator	0.94
	Period Momentum Indicator	0.93
	Relative Strength Index	50.87

McDonalds Corporate Filings

F4	26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
10Q	7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F3	29th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify

McDonalds time-series forecasting models is one of many McDonalds' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary McDonalds' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

McDonalds Stock media impact

Far too much social signal, news, headlines, and media speculation about McDonalds that are available to investors today. That information is available publicly through McDonalds media outlets and privately through word of mouth or via McDonalds internal channels. However, regardless of the origin, that massive amount of McDonalds data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of McDonalds news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of McDonalds relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to McDonalds' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive McDonalds alpha.

McDonalds Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards McDonalds can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

McDonalds Historical Investor Sentiment

Investor biases related to McDonalds' public news can be used to forecast risks associated with an investment in McDonalds. The trend in average sentiment can be used to explain how an investor holding McDonalds can time the market purely based on public headlines and social activities around McDonalds. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

McDonalds' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for McDonalds and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average McDonalds news discussions. The higher the estimate score, the more favorable the investor's outlook on McDonalds.

McDonalds Maximum Pain Price across 2024-12-06 Option Contracts

McDonalds' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of McDonalds close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of McDonalds' options.

McDonalds Corporate Directors

Richard Lenny	Independent Director	Profile
Margaret Georgiadis	Independent Director	Profile
John Rogers	Independent Director	Profile
Sheila Penrose	Independent Director	Profile

When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports: