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Morningstar

McDonald's Corp MCD Stock Quote

Morningstar Rating
| Rating as of

NYSE: MCD

Last close prices updated as of Feb 03, 2023, 7:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 264.23
  • Sector Consumer Cyclical
  • Industry Restaurants
  • Investment Style Large Blend
  • Day Range 261.35  –  265.22
  • Year Range 217.68  –  281.67
  • Market Cap 193.5284 Bil
  • Volume / Avg 3.0 Mil /  2.9 Mil
  • Price / Sales 8.45
  • Price / Book —
  • Forward Div Yield 2.30%
  • Trailing Div Yield 2.72%

Morningstar‘s Stock Analysis MCD

Valuation
Currency in —
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Is it the right time to buy or sell?
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1-Star Price

INVESTOR

5-Star Price

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Economic Moat

INVESTOR

Capital Allocation

INVESTOR

McDonald's Margin Compression Sinks Shares After Q4 Results, but Long-Term Narrative Intact

Sean Dunlop Equity Analyst

Analyst Note

| Sean Dunlop |

Wide-moat McDonald's long-term road map is intact, but fourth-quarter results and 2023 guidance suggest a protracted recovery to prepandemic profitability. Diluted earnings per share of $2.59 aligned closely with our $2.60 forecast as strong guest traffic offset softer-than-expected margins. The 14.6% U.S. restaurant margin and 17.4% international operated markets margin were 40 and 160 basis points shy of our forecasts, with management's guidance for midteens European inflation in 2023 adding a degree of near-term earnings risk that we'd underestimated. We now project slightly softer earnings growth in 2023, with a full recovery to prepandemic restaurant margins likely stretching out five or six years (2027) as the firm prices at or below inflation to defend guest traffic gains. We expect to lower our $247 fair value estimate by a low-single-digit percentage, roughly consistent with the market's reaction to earnings.

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Key Statistics MCD

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Company Profile MCD

Business Description

McDonald’s is the largest restaurant owner-operator in the world, with 2022 system sales of $116 billion across more than 40,000 stores and more than 100 markets. McDonald’s pioneered the franchise model, building its impressive footprint through partnerships with independent restaurant franchisees around the world. The firm earns more than 60% of its revenue from franchise royalty fees and lease payments, with the lion share of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets. McDonald’s owned 55% of the real estate and 80% of the buildings in its franchise system as of the end of 2021, offering it leverage in maintaining quality standards and consistency.

Contact
110 North Carpenter Street
Chicago, IL, 60607
Sector Consumer Cyclical
Industry Restaurants
Employees 200,000

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FAQs for McDonald's Corp Stock

Yes. MCD has a forward dividend yield of 2.30%. See MCD’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

MCD’s market cap is 193.53 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

MCD’s stock style is Large Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

MCD’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare MCD’s historical performance against its industry peers and the overall market.