McDonalds Stock Buy Hold or Sell Recommendation

Stocks . USA . 
Stock . McDonalds
MCD Stock  USD 271.33  1.71  0.63%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding McDonalds is 'Strong Buy'. Macroaxis provides McDonalds buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MCD positions. The advice algorithm takes into account all of McDonalds' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from McDonalds' buy-and-hold perspective. Check out McDonalds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.We conduct extensive research on individual companies such as McDonalds and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards McDonalds.

Execute McDonalds Buy or Sell Advice

The McDonalds recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on McDonalds. Macroaxis does not own or have any residual interests in McDonalds or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute McDonalds' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell McDonaldsBuy McDonalds
Strong Buy

Volatility

Very steady
Details

Hype Condition

Low key
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Current Valuation

Overvalued
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Odds of Distress

Low
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Economic Sensitivity

Follows the market closely
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Analyst Consensus

Buy
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Financial Strenth (F Score)

Healthy
Details

Financial Leverage

Not Rated
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Reporting Quality (M-Score)

Unlikely Manipulator
Details
For the selected time horizon McDonalds has a Risk Adjusted Performance of 0.0426, Jensen Alpha of 0.0483, Total Risk Alpha of 0.0604, Sortino Ratio of 0.0575 and Treynor Ratio of 0.0621
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 8.55 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.

McDonalds Trading Alerts and Improvement Suggestions

About 71.0% of the company shares are owned by institutional investors
On 15th of March 2023 McDonalds paid $ 1.52 per share dividend to its current shareholders
Latest headline from au.finance.yahoo.com: Man shares fast food secrets he learned from college club Dominos will not be happy with me

McDonalds Returns Distribution Density

The distribution of McDonalds' historical returns is an attempt to chart the uncertainty of McDonalds' future price movements. The chart of the probability distribution of McDonalds stock daily returns describes the distribution of returns around its average expected value. We use McDonalds price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of McDonalds returns is essential to provide solid investment advice for McDonalds.
Mean Return0.0449Value At Risk-1.3
Potential Upside1.85Standard Deviation1.02
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of McDonalds historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

McDonalds Stock 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.
Last TransactionTypeSharesValue
Vanguard Group Inc2022-12-31Common Shares68.2 M18 B
State Street Corp2022-12-31Common Shares34 M9 B
Wellington Management Group Llp2022-12-31Common Shares16.1 M4.2 B
Wells Fargo Company2022-12-31Common Shares7.9 M2.1 B
Ubs Group Ag2022-12-31Common Shares5.4 M1.4 B
Ubs Asset Management Americas Inc2022-12-31Common Shares3.3 M857.2 M
Swiss National Bank2022-12-31Common Shares3 M788 M
Sumitomo Mitsui Trust Holdings Inc2022-12-31Common Shares2.5 M647.9 M
Td Asset Management Inc2022-12-31Common Shares1.6 M420.5 M
Two Sigma Advisers Lp2022-12-31Common Shares1.6 M414.6 M
Us Bancorp2022-12-31Common Shares1.2 M311.7 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 Cash Flow Accounts

201820192020202120222023 (projected)
Capital Expenditure(2.58 B)(2.24 B)(1.61 B)(1.93 B)(1.86 B)(2.01 B)
Depreciation Amortization and Accretion1.48 B1.62 B1.75 B1.87 B1.87 B1.92 B
Net Cash Flow or Change in Cash and Cash Equivalents(1.6 B)32.5 M2.55 B1.26 B(2.13 B)(2.18 B)
Net Cash Flow Business Acquisitions and Disposals429.1 M(200.1 M)10.2 M(178 M)(361.1 M)(370.6 M)
Issuance Purchase of Equity Shares(4.8 B)(4.63 B)(612.3 M)(559.8 M)(3.65 B)(3.94 B)
Issuance Repayment of Debt Securities2.13 B3.24 B2.24 B(1.07 B)1.2 B1.6 B
Payment of Dividends and Other Cash Distributions(3.26 B)(3.58 B)(3.75 B)(3.92 B)(4.17 B)(4.5 B)
Net Cash Flow from Financing(5.95 B)(4.99 B)(2.25 B)(5.6 B)(6.58 B)(7.1 B)
Net Cash Flow from Investing(2.46 B)(3.07 B)(1.55 B)(2.17 B)(2.68 B)(2.89 B)
Net Cash Flow from Operations6.97 B8.12 B6.27 B9.14 B7.39 B7.93 B
Effect of Exchange Rate Changes on Cash(159.8 M)(23.7 M)80.2 M(120.1 M)(253.8 M)(260.48 M)
Share Based Compensation125.1 M109.6 M92.4 M139.2 M166.7 M155.48 M
Backtest McDonalds

McDonalds Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to McDonalds or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that McDonalds' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a McDonalds stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite		0.048271
β
Beta against NYSE Composite0.56
σ
Overall volatility		1.04
Ir
Information ratio 0.06

McDonalds Volatility Alert

McDonalds has relatively low volatility with skewness of 0.09 and kurtosis of 0.5. However, we advise all investors to independently investigate McDonalds to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure McDonalds' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact McDonalds' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

McDonalds Implied Volatility

McDonalds' implied volatility exposes the market's sentiment of McDonalds stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McDonalds' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that McDonalds stock will not fluctuate a lot when McDonalds' options are near their expiration.

McDonalds Fundamentals Vs Peers

Comparing McDonalds' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze McDonalds' direct or indirect competition across all of the common fundamentals between McDonalds and the related equities. This way, we can detect undervalued stocks with similar characteristics as McDonalds or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of McDonalds' fundamental indicators could also be used in its relative valuation, which is a method of valuing McDonalds by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare McDonalds to competition
FundamentalsMcDonaldsPeer Average
Return On Asset0.12 %(0.14) %
Profit Margin0.27 %(1.27) %
Operating Margin0.45 %(5.51) %
Current Valuation245.53 B16.62 B
Shares Outstanding731.5 M571.82 M
Shares Owned by Insiders0.17 %10.09 %
Shares Owned by Institutions70.85 %39.21 %
Number of Shares Shorted6.29 M4.71 M
Price to Earning39.39 X28.72 X
Price to Sales8.55 X11.42 X
Revenue23.18 B9.43 B
Gross Profit13.21 B27.38 B
EBITDA9.4 B3.9 B
Net Income6.18 B570.98 M
Cash and Equivalents2.58 B2.7 B
Cash per Share3.86 X5.01 X
Total Debt35.9 B5.32 B
Debt to Equity4.35 %48.70 %
Current Ratio1.65 X2.16 X
Book Value Per Share(8.22) X1.93 K
Cash Flow from Operations7.39 B971.22 M
Short Ratio2.31 X4.00 X
Earnings Per Share8.38 X3.12 X
Price to Earnings To Growth3.34 X4.89 X
Target Price294.85
Number of Employees100 K18.84 K
Beta0.62-0.15
Market Capitalization198.48 B19.03 B
Total Asset50.44 B29.47 B
Retained Earnings52.53 B9.33 B
Working Capital6.69 B1.48 B
Current Asset9.64 B9.34 B
Current Liabilities2.95 B7.9 B
   Acquisition by Lloyd Dean of 124 shares of McDonalds Corp subject to Rule 16b-3 [view details]

About McDonalds Buy or Sell Advice

When is the right time to buy or sell McDonalds? Buying financial instruments such as McDonalds Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 (projected)
Receivables1.87 B2.12 B1.82 B
Inventories55.6 M52 M74.57 M

Use Investing Ideas to Build Portfolios

In addition to having McDonalds in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Emerging Markets
Emerging Markets Theme
Fund or Etfs that invest in markets of developing countries. The Emerging Markets theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets Theme or any other thematic opportunities.
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Check out McDonalds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide. Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running McDonalds price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.
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Is McDonalds' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.186
Dividend Share
5.66
Earnings Share
8.38
Revenue Per Share
31.477
Quarterly Revenue Growth
(0.014) 
The market value of McDonalds is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds' value that differs from its market value or its book value, called intrinsic value, which is McDonalds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds' market value can be influenced by many factors that don't directly affect McDonalds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Altman
Z Score
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Piotroski
F Score
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Beneish
M Score
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Financial
Analysis
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Buy or Sell
Advice
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Earnings
Projections
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Please note, there is a significant difference between McDonalds' value and its price as these two are different measures arrived at by different means. Investors typically determine McDonalds value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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