Mcdonalds Stock Buy Hold or Sell Recommendation
| MCD Stock | USD 252.00 0.54 0.21% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding McDonalds is 'Cautious 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.
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
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
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 | |
| On 17th of June 2024 McDonalds paid $ 1.67 per share dividend to its current shareholders | |
| Latest headline from investors.com: These Signs Show Which Stocks Are Having A Hidden Rally, Says Mark Minervini |
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 | -0.12 | Value At Risk | -1.77 | Potential Upside | 2.20 | Standard Deviation | 1.16 |
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 Canada | 2024-03-31 | 7.6 M | Bank Of New York Mellon Corp | 2024-03-31 | 6.1 M | Legal & General Group Plc | 2024-03-31 | 5.9 M | T. Rowe Price Associates, Inc. | 2024-03-31 | 5.9 M | Ubs Group Ag | 2024-03-31 | 5.6 M | Gallagher Fiduciary Advisors, Llc | 2024-03-31 | 5.5 M | Nuveen Asset Management, Llc | 2024-03-31 | 5.5 M | Capital Research Global Investors | 2024-03-31 | 5.5 M | Charles Schwab Investment Management Inc | 2024-03-31 | 5.5 M | Vanguard Group Inc | 2024-03-31 | 69.1 M | Blackrock Inc | 2024-03-31 | 50.8 M |
McDonalds Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 128.8M | (68.6M) | (62.2M) | 5.6M | 16.7M | 17.5M | |
| Change In Cash | 32.5M | 2.6B | 1.3B | (2.1B) | 2.0B | 2.1B | |
| Free Cash Flow | 5.7B | 4.6B | 7.1B | 5.5B | 7.3B | 7.6B | |
| Depreciation | 1.6B | 1.8B | 1.9B | 1.9B | 381.7M | 362.6M | |
| Dividends Paid | 3.6B | 3.8B | 3.9B | 4.2B | 4.5B | 4.8B | |
| Capital Expenditures | 2.4B | 1.6B | 2.0B | 1.9B | 2.4B | 2.2B | |
| Net Income | 6.0B | 4.7B | 7.5B | 6.2B | 8.5B | 8.9B | |
| End Period Cash Flow | 898.5M | 3.4B | 4.7B | 2.6B | 4.6B | 4.8B | |
| Other Non Cash Items | (79M) | (103.4M) | (436.9M) | 162.3M | 1.4B | 1.4B | |
| Change To Netincome | 180.3M | (4.6M) | (720.3M) | (16.7M) | (15.0M) | (14.3M) | |
| Investments | (3.1B) | (1.5B) | (2.2B) | (2.7B) | (3.4B) | (3.2B) | |
| Net Borrowings | 3.2B | 2.2B | (1.1B) | 1.2B | 1.4B | 2.2B |
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 Dow Jones | -0.18 | |
β | Beta against Dow Jones | 0.83 | |
σ | Overall volatility | 1.19 | |
Ir | Information ratio | -0.16 |
McDonalds Volatility Alert
McDonalds exhibits very low volatility with skewness of 0.38 and kurtosis of 0.25. 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 |
| Fundamentals | McDonalds | Peer Average |
| Return On Asset | 0.14 | -0.14 |
| Profit Margin | 0.33 % | (1.27) % |
| Operating Margin | 0.44 % | (5.51) % |
| Current Valuation | 231.33 B | 16.62 B |
| Shares Outstanding | 720.68 M | 571.82 M |
| Shares Owned By Insiders | 0.17 % | 10.09 % |
| Shares Owned By Institutions | 71.95 % | 39.21 % |
| Number Of Shares Shorted | 9.82 M | 4.71 M |
| Price To Earning | 39.39 X | 28.72 X |
| Price To Sales | 7.56 X | 11.42 X |
| Revenue | 25.49 B | 9.43 B |
| Gross Profit | 13.21 B | 27.38 B |
| EBITDA | 12.13 B | 3.9 B |
| Net Income | 8.47 B | 570.98 M |
| Cash And Equivalents | 2.58 B | 2.7 B |
| Cash Per Share | 3.86 X | 5.01 X |
| Total Debt | 50.21 B | 5.32 B |
| Debt To Equity | 4.35 % | 48.70 % |
| Current Ratio | 1.65 X | 2.16 X |
| Book Value Per Share | (6.71) X | 1.93 K |
| Cash Flow From Operations | 9.61 B | 971.22 M |
| Short Ratio | 2.37 X | 4.00 X |
| Earnings Per Share | 11.69 X | 3.12 X |
| Price To Earnings To Growth | 1.93 X | 4.89 X |
| Target Price | 305.63 | |
| Number Of Employees | 100 K | 18.84 K |
| Beta | 0.71 | -0.15 |
| Market Capitalization | 182.6 B | 19.03 B |
| Total Asset | 56.15 B | 29.47 B |
| Retained Earnings | 63.48 B | 9.33 B |
| Working Capital | 1.13 B | 1.48 B |
| Current Asset | 9.64 B | 9.34 B |
| Current Liabilities | 2.95 B | 7.9 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.
| Accumulation Distribution | 43828.15 | |||
| Daily Balance Of Power | 0.1641 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 252.4 | |||
| Day Typical Price | 252.26 | |||
| Price Action Indicator | (0.12) | |||
| Period Momentum Indicator | 0.54 |
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) | Gross Profit | 12.6B | 13.2B | 14.2B | 8.7B | Total Revenue | 23.2B | 23.2B | 25.5B | 18.3B |
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.Did You Try This Idea?
Run Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 37 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 Office Supplies 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 CEOs Directory module to screen CEOs from public companies around the world.
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 11.69 | 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.