Mcdonalds Stock Buy Hold or Sell Recommendation

MCD Stock  USD 253.70  0.78  0.31%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding McDonalds is 'Strong Hold'. 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.
  
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, we conduct extensive research on individual companies such as McDonalds and provide practical buy, sell, or hold advice based on investors' constraints. McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

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 Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon McDonalds has a Risk Adjusted Performance of (0.11), Jensen Alpha of (0.21), Total Risk Alpha of (0.20) and Treynor Ratio of (0.32)
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 7.56 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

McDonalds generated a negative expected return over the last 90 days
About 72.0% of the company shares are owned by institutional investors
Latest headline from cnbc.com: Cramer says the market cant broaden out due to uncertainty away from tech

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 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 Return
-0.21
Value At Risk
-1.77
Potential Upside
1.54
Standard Deviation
1.12
   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

Shares
Royal Bank Of Canada2024-03-31
7.6 M
Bank Of New York Mellon Corp2024-03-31
6.1 M
Legal & General Group Plc2024-03-31
5.9 M
T. Rowe Price Associates, Inc.2024-03-31
5.9 M
Ubs Group Ag2024-03-31
5.6 M
Gallagher Fiduciary Advisors, Llc2024-03-31
5.5 M
Nuveen Asset Management, Llc2024-03-31
5.5 M
Capital Research Global Investors2024-03-31
5.5 M
Charles Schwab Investment Management Inc2024-03-31
5.5 M
Vanguard Group Inc2024-03-31
69.1 M
Blackrock Inc2024-03-31
50.8 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

201920202021202220232024 (projected)
Change To Inventory128.8M(68.6M)(62.2M)5.6M16.7M17.5M
Change In Cash32.5M2.6B1.3B(2.1B)2.0B2.1B
Free Cash Flow5.7B4.6B7.1B5.5B7.3B7.6B
Depreciation1.6B1.8B1.9B1.9B381.7M362.6M
Dividends Paid3.6B3.8B3.9B4.2B4.5B4.8B
Capital Expenditures2.4B1.6B2.0B1.9B2.4B2.2B
Net Income6.0B4.7B7.5B6.2B8.5B8.9B
End Period Cash Flow898.5M3.4B4.7B2.6B4.6B4.8B
Other Non Cash Items(79M)(103.4M)(436.9M)162.3M1.4B1.4B
Change To Netincome180.3M(4.6M)(720.3M)(16.7M)(15.0M)(14.3M)
Investments(3.1B)(1.5B)(2.2B)(2.7B)(3.4B)(3.2B)
Net Borrowings3.2B2.2B(1.1B)1.2B1.4B2.2B

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
-0.21
β
Beta against NYSE Composite0.68
σ
Overall volatility
1.04
Ir
Information ratio -0.18

McDonalds Volatility Alert

McDonalds exhibits very low volatility with skewness of -0.21 and kurtosis of 1.87. 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 financial instruments 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 Asset0.14-0.14
Profit Margin0.33 %(1.27) %
Operating Margin0.44 %(5.51) %
Current Valuation233.51 B16.62 B
Shares Outstanding720.68 M571.82 M
Shares Owned By Insiders0.17 %10.09 %
Shares Owned By Institutions72.40 %39.21 %
Number Of Shares Shorted7.88 M4.71 M
Price To Earning39.39 X28.72 X
Price To Sales7.56 X11.42 X
Revenue25.49 B9.43 B
Gross Profit13.21 B27.38 B
EBITDA12.13 B3.9 B
Net Income8.47 B570.98 M
Cash And Equivalents2.58 B2.7 B
Cash Per Share3.86 X5.01 X
Total Debt50.21 B5.32 B
Debt To Equity4.35 %48.70 %
Current Ratio1.65 X2.16 X
Book Value Per Share(6.71) X1.93 K
Cash Flow From Operations9.61 B971.22 M
Short Ratio2.20 X4.00 X
Earnings Per Share11.78 X3.12 X
Price To Earnings To Growth1.93 X4.89 X
Target Price292.0
Number Of Employees100 K18.84 K
Beta0.71-0.15
Market Capitalization182.84 B19.03 B
Total Asset56.15 B29.47 B
Retained Earnings63.48 B9.33 B
Working Capital1.13 B1.48 B
Current Asset9.64 B9.34 B
Current Liabilities2.95 B7.9 B
Note: Exercise or conversion by Thompson Donald of 41800 shares of McDonalds subject to Rule 16b-3 [view details]

McDonalds Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as McDonalds . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

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 2024 (projected)
Short and Long Term Debt Total48.6B48.7B50.2B52.7B
Total Assets53.6B50.4B56.1B28.8B

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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Electrical Equipment
Electrical Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electrical Equipment theme has 61 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 Electrical Equipment Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in McDonalds Stock

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:
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.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Hotels, Restaurants & Leisure space 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
0.086
Dividend Share
6.38
Earnings Share
11.78
Revenue Per Share
35.507
Quarterly Revenue Growth
0.046
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.
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 if McDonalds is a good investment 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.