McDonalds Stock Performance

Stocks . USA . 
Stock . McDonalds
MCD Stock  USD 284.54  3.89  1.35%   
McDonalds has a performance score of 12 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.4949, which conveys possible diversification benefits within a given portfolio. Let's try to break down what McDonalds's beta means in this case. As returns on the market increase, McDonalds returns are expected to increase less than the market. However, during the bear market, the loss on holding McDonalds will be expected to be smaller as well. Although it is important to respect McDonalds price patterns, it is better to be realistic regarding the information on the equity's historical price patterns. The approach to estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing McDonalds technical indicators, you can currently evaluate if the expected return of 0.12% will be sustainable into the future. McDonalds presently secures a risk of 0.72%. Please verify McDonalds coefficient of variation, maximum drawdown, skewness, as well as the relationship between the total risk alpha and downside variance to decide if McDonalds will be following its current price movements.
  

McDonalds Performance

12 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in McDonalds are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal fundamental indicators, McDonalds may actually be approaching a critical reversion point that can send shares even higher in July 2023. ...more

Structure and Payout Changes

Forward Dividend Yield
0.0211
Payout Ratio
0.5684
Last Split Factor
2:1
Forward Dividend Rate
6.08
Dividend Date
2023-06-20
 
McDonalds dividend paid on 15th of March 202303/15/2023
1
Financial Statements03/29/2023
2
EPS Estimate03/31/2023
3
Exercise or conversion by Thompson Donald of 41800 shares of...04/10/2023
4
EPS Reported04/25/2023
5
The rocky, wacky origin story of CNN in book form06/01/2023
6
Thugs dressed as Spiderman, Ali G and nun attack Asda staff ...06/02/2023
7
Families are flooding US border following Title 42s end beca...06/05/2023
Begin Period Cash Flow4.7 B
Total Cashflows From Investing Activities-2.7 B

McDonalds Relative Risk vs. Return Landscape

If you would invest  26,393  in McDonalds on March 8, 2023 and sell it today you would earn a total of  2,061  from holding McDonalds or generate 7.81% return on investment over 90 days. McDonalds is generating 0.122% of daily returns assuming volatility of 0.7227% on return distribution over 90 days investment horizon. In other words, 6% of stocks are less volatile than McDonalds, and above 98% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon McDonalds is expected to generate 0.78 times more return on investment than the market. However, the company is 1.29 times less risky than the market. It trades about 0.17 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.0 per unit of risk.

McDonalds Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for McDonalds' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as McDonalds, and traders can use it to determine the average amount a McDonalds' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1688

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Estimated Market Risk

 0.72
  actual daily
 6 
94% of assets are more volatile
66

Expected Return

 0.12
  actual daily
 2 
98% of assets have higher returns
22

Risk-Adjusted Return

 0.17
  actual daily
 12 
88% of assets perform better
1212
Based on monthly moving average McDonalds is performing at about 12% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of McDonalds by adding it to a well-diversified portfolio.

McDonalds Fundamentals Growth

McDonalds Stock prices reflect investors' perceptions of the future prospects and financial health of McDonalds, and McDonalds fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on McDonalds Stock performance.
Return On Asset0.13 %
Profit Margin0.29 %
Operating Margin0.45 %
Current Valuation245.53 B
Shares Outstanding730.09 M
Price to Earning39.39 X
Price to Sales8.55 X
Revenue23.18 B
Gross Profit13.21 B
EBITDA10.36 B
Net Income6.18 B
Cash and Equivalents2.58 B
Cash per Share3.86 X
Total Debt35.9 B
Debt to Equity4.35 %
Current Ratio1.65 X
Book Value Per Share(7.91) X
Cash Flow from Operations7.39 B
Earnings Per Share9.36 X
Market Capitalization210.58 B
Total Asset50.44 B
Retained Earnings59.54 B
Working Capital1.62 B
Current Asset9.64 B
Current Liabilities2.95 B

About McDonalds Performance

To evaluate McDonalds Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when McDonalds generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare McDonalds Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand McDonalds market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents McDonalds's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2023
Effect of Exchange Rate Changes on Cash-253.8 M-260.5 M
Return on Investment 30.20  28.50 
Return on Average Assets 0.12  0.12 
Return on Average Equity(0.99) (1.02) 
Return on Invested Capital 0.10  0.12 
Return on Sales 0.39  0.42 

Things to note about McDonalds performance evaluation

Checking the ongoing alerts about McDonalds for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for McDonalds help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
McDonalds is unlikely to experience financial distress in the next 2 years
About 71.0% of the company shares are owned by institutional investors
Latest headline from nypost.com: Families are flooding US border following Title 42s end because Bidens rules dont apply to them
Evaluating McDonalds' performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate McDonalds' stock performance include:
  • Analyzing McDonalds' financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether McDonalds' stock is overvalued or undervalued compared to its peers.
  • Examining McDonalds' industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating McDonalds' management team can have a significant impact on its success or failure. Reviewing the track record and experience of McDonalds' management team can help you assess the company's leadership.
  • Pay attention to analyst opinions and ratings of McDonalds' stock. These opinions can provide insight into McDonalds' potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating McDonalds' stock performance is not an exact science, and many factors can impact McDonalds' stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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
0.655
Dividend Share
5.8
Earnings Share
9.36
Revenue Per Share
31.919
Quarterly Revenue Growth
0.041
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.
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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 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.
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