McDonalds Profit Margin
| MCD Stock | USD 263.44 2.15 0.81% |
McDonalds fundamentals help investors to digest information that contributes to McDonalds' financial success or failures. It also enables traders to predict the movement of McDonalds Stock. The fundamental analysis module provides a way to measure McDonalds' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to McDonalds stock.
The current year's Profit Margin is expected to grow to 0.27. McDonalds | Profit Margin |
McDonalds Profit Margin Analysis
McDonalds' Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
More About Profit Margin | All Equity Analysis
McDonalds Profit Margin |
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Profit Margin | = | Net Income Revenue | X | 100 |
Current McDonalds Profit Margin | 0.33 % |
Most of McDonalds' fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, McDonalds is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
McDonalds Profit Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for McDonalds is extremely important. It helps to project a fair market value of McDonalds Stock properly, considering its historical fundamentals such as Profit Margin. Since McDonalds' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of McDonalds' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of McDonalds' interrelated accounts and indicators.
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McDonalds Profit Margin Historical Pattern
Today, most investors in McDonalds Stock are looking for potential investment opportunities by analyzing not only static indicators but also various McDonalds' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of McDonalds profit margin as a starting point in their analysis.
McDonalds Profit Margin |
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In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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McDonalds Operating Margin
Operating Margin |
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Based on the latest financial disclosure, McDonalds has a Profit Margin of 0.3306%. This is 86.88% lower than that of the Hotels, Restaurants & Leisure sector and 93.84% lower than that of the Consumer Discretionary industry. The profit margin for all United States stocks is 126.03% lower than that of the firm.
McDonalds Profit Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses McDonalds' direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of McDonalds could also be used in its relative valuation, which is a method of valuing McDonalds by comparing valuation metrics of similar companies.McDonalds is currently under evaluation in profit margin category among related companies.
McDonalds Current Valuation Drivers
We derive many important indicators used in calculating different scores of McDonalds from analyzing McDonalds' financial statements. These drivers represent accounts that assess McDonalds' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of McDonalds' important valuation drivers and their relationship over time.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Net Income Per Employee | 28.21 K | 29.39 K | 23.59 K | 37.73 K | 41.18 K | 44.43 K | |
| Revenue Per Employee | 100.12 K | 102.81 K | 95.78 K | 116.11 K | 154.55 K | 166.75 K | |
| Average Assets | 33.32 B | 46.5 B | 50.96 B | 52.39 B | 49.77 B | 49.25 B | |
| Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 10.28 B | 10.76 B | 9.11 B | 12.18 B | 10.9 B | 11.64 B | |
| Earnings Before Interest Taxes and Depreciation Amortization USD | 10.28 B | 10.76 B | 9.11 B | 12.18 B | 10.9 B | 11.64 B | |
| Earnings before Tax | 7.82 B | 8.02 B | 6.14 B | 9.13 B | 7.83 B | 8.57 B | |
| Average Equity | (5.91 B) | (7.54 B) | (8.76 B) | (5.83 B) | (6.23 B) | (6.4 B) | |
| Enterprise Value | 166.21 B | 193.08 B | 207.49 B | 244.82 B | 237.48 B | 218.23 B | |
| Free Cash Flow | 4.39 B | 5.88 B | 4.65 B | 7.21 B | 5.53 B | 5.71 B | |
| Invested Capital | 57.72 B | 87.87 B | 91.69 B | 91.69 B | 89.85 B | 83.99 B | |
| Invested Capital Average | 57.19 B | 84.86 B | 90.14 B | 90.7 B | 88.62 B | 82.37 B | |
| Market Capitalization | 136.89 B | 148.82 B | 159.89 B | 200.31 B | 193.02 B | 178.53 B | |
| Tangible Asset Value | 30.48 B | 44.83 B | 49.85 B | 51.07 B | 47.54 B | 46.97 B | |
| Working Capital | 1.08 B | (63.1 M) | 62 M | 3.13 B | 1.62 B | 1.66 B |
McDonalds ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, McDonalds' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McDonalds' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
McDonalds Fundamentals
| Return On Asset | 0.14 | |||
| Profit Margin | 0.33 % | |||
| Operating Margin | 0.46 % | |||
| Current Valuation | 239.05 B | |||
| Shares Outstanding | 728.76 M | |||
| Shares Owned by Insiders | 0.20 % | |||
| Shares Owned by Institutions | 70.41 % | |||
| Number of Shares Shorted | 6.95 M | |||
| Price to Earning | 39.39 X | |||
| Price to Sales | 8.55 X | |||
| Revenue | 23.18 B | |||
| Gross Profit | 13.21 B | |||
| EBITDA | 9.74 B | |||
| Net Income | 6.18 B | |||
| Cash and Equivalents | 2.58 B | |||
| Cash per Share | 3.86 X | |||
| Total Debt | 48.7 B | |||
| Debt to Equity | 4.35 % | |||
| Current Ratio | 1.65 X | |||
| Book Value Per Share | (6.86) X | |||
| Cash Flow from Operations | 7.39 B | |||
| Short Ratio | 2.75 X | |||
| Earnings Per Share | 10.86 X | |||
| Price to Earnings To Growth | 3.34 X | |||
| Target Price | 329.36 | |||
| Number of Employees | 100 K | |||
| Beta | 0.64 | |||
| Market Capitalization | 193.55 B | |||
| Total Asset | 50.44 B | |||
| Retained Earnings | 59.54 B | |||
| Working Capital | 1.62 B | |||
| Current Asset | 9.64 B | |||
| Current Liabilities | 2.95 B | |||
| Z Score | 5.17 | |||
| Annual Yield | 0.0231 % | |||
| Five Year Return | 2.30 % | |||
| Net Asset | 50.44 B | |||
| Last Dividend Paid | 5.94 |
About McDonalds Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze McDonalds's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McDonalds using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McDonalds based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for 2023 | ||
| Profit Margin | 0.27 | 0.27 |
McDonalds Investors Sentiment
The influence of McDonalds' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in McDonalds. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
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 is the estimated score. Higher bars for a given day show more participation in the average McDonalds' news discussions. The higher the estimated score, the more favorable is the investor's outlook on McDonalds.
McDonalds Implied Volatility | 37.07 |
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards McDonalds in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, McDonalds' short interest history, or implied volatility extrapolated from McDonalds options trading.
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Check out McDonalds Piotroski F Score and McDonalds Altman Z Score analysis. 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 the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Complementary Tools for McDonalds Stock analysis
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 the 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 0.969 | Dividend Share 5.94 | Earnings Share 10.86 | Revenue Per Share 33.068 | Quarterly Revenue Growth 0.136 |
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.