McDonalds Z Score

MCD Stock

USD 271.33 1.71 0.63%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out McDonalds Piotroski F Score and McDonalds Valuation analysis. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.

McDonalds Working Capital is projected to decrease significantly based on the last few years of reporting. The past year's Working Capital was at 1.62 Billion. McDonalds Consolidated Income is projected to increase significantly based on the last few years of reporting. The past year's Consolidated Income was at 6.18 Billion. The current year Cost of Revenue is expected to grow to about 10.6 B, whereas Operating Expenses is forecasted to decline to about 3.6 B.

McDonalds Z Score Analysis

McDonalds' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

	2020	2021	2022	2023 (projected)
Consolidated Income	4.73 B	7.55 B	6.18 B	6.44 B
Direct Expenses	7.25 B	8.31 B	7.63 B	10.71 B

Consolidated Income Direct Expenses

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

Current McDonalds Z Score

4.4

Most of McDonalds' fundamental indicators, such as Z Score, 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.

First Factor

1.2 * (

Working Capital

Total Assets )

Second Factor

1.4 * (

Retained Earnings

Total Assets )

Thrid Factor

3.3 * (

EBITAD

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

Total Assets )

McDonalds Z Score 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 Ford stock properly, considering its historical fundamentals such as Z Score. 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.

Click cells to compare fundamentals

To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.

Competition

Predict McDonalds

Based on the company's disclosures, McDonalds has a Z Score of 4.4. This is 36.22% higher than that of the Hotels, Restaurants & Leisure sector and 4.56% lower than that of the Consumer Discretionary industry. The z score for all United States stocks is 49.54% higher than that of the company.

McDonalds Z Score 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 Z Score 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 z score 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 Institutional Holders

Institutional Holdings refers to the ownership stake in McDonalds that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of McDonalds' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing McDonalds' value.

	Last Transaction	Type	Shares	Value
Vanguard Group Inc	2022-12-31	Common Shares	68.2 M	18 B
State Street Corp	2022-12-31	Common Shares	34 M	9 B
Wellington Management Group Llp	2022-12-31	Common Shares	16.1 M	4.2 B
Wells Fargo Company	2022-12-31	Common Shares	7.9 M	2.1 B
Ubs Group Ag	2022-12-31	Common Shares	5.4 M	1.4 B
Ubs Asset Management Americas Inc	2022-12-31	Common Shares	3.3 M	857.2 M
Swiss National Bank	2022-12-31	Common Shares	3 M	788 M
Sumitomo Mitsui Trust Holdings Inc	2022-12-31	Common Shares	2.5 M	647.9 M
Td Asset Management Inc	2022-12-31	Common Shares	1.6 M	420.5 M
Two Sigma Advisers Lp	2022-12-31	Common Shares	1.6 M	414.6 M
Us Bancorp	2022-12-31	Common Shares	1.2 M	311.7 M

McDonalds Fundamentals

	Return On Asset	0.12 %
	Profit Margin	0.27 %
	Operating Margin	0.45 %
	Current Valuation	245.53 B
	Shares Outstanding	731.5 M
	Shares Owned by Insiders	0.17 %
	Shares Owned by Institutions	70.85 %
	Number of Shares Shorted	6.29 M
	Price to Earning	39.39 X
	Price to Sales	8.55 X
	Revenue	23.18 B
	Gross Profit	13.21 B
	EBITDA	9.4 B
	Net Income	6.18 B
	Cash and Equivalents	2.58 B
	Cash per Share	3.86 X
	Total Debt	35.9 B
	Debt to Equity	4.35 %
	Current Ratio	1.65 X
	Book Value Per Share	(8.22) X
	Cash Flow from Operations	7.39 B
	Short Ratio	2.31 X
	Earnings Per Share	8.38 X
	Price to Earnings To Growth	3.34 X
	Target Price	294.85
	Number of Employees	100 K
	Beta	0.62
	Market Capitalization	198.48 B
	Total Asset	50.44 B
	Retained Earnings	52.53 B
	Working Capital	6.69 B
	Current Asset	9.64 B
	Current Liabilities	2.95 B
	Z Score	4.4
	Annual Yield	0.0226 %
	Five Year Return	2.30 %
	Net Asset	50.44 B
	Last Dividend Paid	5.66

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.

McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally. McDonalds Corporation was founded in 1940 and is headquartered in Chicago, Illinois. McDonalds Corp operates under Restaurants classification in the United States and is traded on New York Stock Exchange. It employs 100000 people.

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 markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to McDonalds' public news can be used to forecast risks associated with 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 equiteis 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

19.9

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 Valuation 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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 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.

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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	Accounts Payable	Total Assets	Current Assets	Cash and Equivalents	Total Debt	Debt Current	Deferred Revenue	Shareholders Equity	Total Liabilities	Current Liabilities	Tax Liabilities
Accounts Payable		-0.06	-0.25	-0.23	-0.11	-0.3	0.08	0.11	-0.11	-0.36	-0.14
Total Assets	-0.06		0.3	0.25	0.86	0.64	0.86	-0.58	0.86	0.72	0.63
Current Assets	-0.25	0.3		0.97	0.17	0.12	0.24	-0.04	0.17	0.17	0.01
Cash and Equivalents	-0.23	0.25	0.97		0.06	0.04	0.12	0.12	0.05	0.08	-0.12
Total Debt	-0.11	0.86	0.17	0.06		0.71	0.77	-0.91	1.0	0.64	0.88
Debt Current	-0.3	0.64	0.12	0.04	0.71		0.47	-0.62	0.71	0.89	0.77
Deferred Revenue	0.08	0.86	0.24	0.12	0.77	0.47		-0.58	0.77	0.54	0.52
Shareholders Equity	0.11	-0.58	-0.04	0.12	-0.91	-0.62	-0.58		-0.91	-0.45	-0.9
Total Liabilities	-0.11	0.86	0.17	0.05	1.0	0.71	0.77	-0.91		0.64	0.89
Current Liabilities	-0.36	0.72	0.17	0.08	0.64	0.89	0.54	-0.45	0.64		0.63
Tax Liabilities	-0.14	0.63	0.01	-0.12	0.88	0.77	0.52	-0.9	0.89	0.63

McDonalds Z Score

McDonalds Z Score Analysis

Current McDonalds Z Score

McDonalds Z Score Driver Correlations

McDonalds Z Score Peer Comparison

McDonalds Current Valuation Drivers

McDonalds ESG Sustainability

McDonalds Institutional Holders

McDonalds Fundamentals

About McDonalds Fundamental Analysis

McDonalds Investors Sentiment

McDonalds Implied Volatility

Becoming a Better Investor with Macroaxis

Build Optimal Portfolios

Align your risk with return expectations

Complementary Tools for McDonalds Stock analysis

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