McDonald's Corp's fundamentals are relatively healthy, and its growth potential is high.Its valuation is considered fairly valued, ranking 9 out of 124 in the Hotels & Entertainment Services industry.Institutional ownership is very high.Over the past month, multiple analysts have rated it as Buy, with the highest price target at 337.25.In the medium term, the stock price is expected to remain stable.Despite an average stock market performance over the past month, the company shows strong fundamentals and technicals.The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.
Media Coverage
McDonald's Corporation, commonly referred to as McDonald's, is an American multinational fast food chain. As of 2024, it ranks as the second largest globally by the number of locations, only behind the Chinese chain Mixue Ice Cream & Tea.
Founded in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, McDonald's began as a hamburger stand and quickly moved to franchise the concept. The iconic Golden Arches logo was introduced in 1953. In 1955, businessman Ray Kroc became a franchise agent for McDonald's and purchased the company in 1961. Since then, the chain has extended its reach internationally. Today, McDonald's boasts over 50,000 restaurant locations worldwide, with approximately a quarter of them situated in the U.S.
In addition to food sales, McDonald's earns revenue by owning 70% of its restaurant buildings and 45% of the underlying land. As of 2018, McDonald's was the world's second-largest private employer with 1.7 million employees, following Walmart, most of whom are employed at franchise locations.
Among McDonald's bestselling licensed items are its French fries and Big Mac hamburgers, while the menu also features cheeseburgers, chicken, fish, fruit, and salads. The company has faced criticism regarding food nutrition, animal welfare, and low wages for workers.
The current financial score of McDonald's Corp is 8.86, ranking 14 out of 124 in the Hotels & Entertainment Services industry. Its financial status is stable, and its operating efficiency is high. Its latest quarterly revenue reached 7.08B, representing a year-over-year increase of 2.98%, while its net profit experienced a year-over-year increase of 1.02%.
Key Metrics
The current valuation score of McDonald's Corp is 6.25, ranking 96 out of 124 in the Hotels & Entertainment Services industry. Its current P/E ratio is 26.79, which is 23.63% below the recent high of 33.12 and 21.39% above the recent low of 21.06.
The current earnings forecast score of McDonald's Corp is 7.18, ranking 72 out of 124 in the Hotels & Entertainment Services industry. The average price target is 340.00, with a high of 371.00 and a low of 260.00.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The current price momentum score of McDonald's Corp is 9.32, ranking 4 out of 124 in the Hotels & Entertainment Services industry. Currently, the stock price is trading between the resistance level at 322.50 and the support level at 303.43, making it suitable for range-bound swing trading.
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The current institutional shareholding score of McDonald's Corp is 7.00, ranking 52 out of 124 in the Hotels & Entertainment Services industry. The latest institutional shareholding proportion is 74.96%, representing a quarter-over-quarter increase of 0.01%. The largest institutional shareholder is The Vanguard, holding a total of 71.32M shares, representing 10.01% of shares outstanding, with 2.15% increase in holdings.
The U.S. Dollar Index is currently in a neutral state, which has a neutral effect on the Hotels & Entertainment Services domestic-focused industry. The Dollar Index (DXY) measures the value of the U.S. dollar against a basket of major currencies, including the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc. The current risk assessment score of McDonald's Corp is 9.95, ranking 1 out of 124 in the Hotels & Entertainment Services industry. The company's beta value is 0.53. This indicates that the stock tends to underperform the index during upward trending markets but experiences smaller declines during downward trending markets.
