The company's fundamentals are relatively healthy. Its valuation is considered fairly valued,and institutional recognition is very high. Over the past 30 days, multiple analysts have rated the company as a Buy. Despite an average stock market performance, 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.
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 company's current financial score is 7.74, which is higher than the Hotels & Entertainment Services industry's average of 7.31. Its financial status is stable, and its operating efficiency is average. Its latest quarterly revenue reached 5.96B, representing a year-over-year decrease of 3.45%, while its net profit experienced a year-over-year decrease of 3.16%.
The company’s current valuation score is 1.20, which is lower than the Hotels & Entertainment Services industry's average of 2.42. Its current P/E ratio is 26.55, which is 3.46% below the recent high of 27.47 and 5.27% above the recent low of 25.15.
The company’s current earnings forecast score is 7.26, which is lower than the Hotels & Entertainment Services industry's average of 7.55. The average price target for McDonald's Corp is 340.00, with a high of 373.00 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 company’s current price momentum score is 8.97, which is higher than the Hotels & Entertainment Services industry's average of 7.78. Sideways: Currently, the stock price is trading between the resistance level at 319.36 and the support level at 300.93, making it suitable for range-bound swing trading.
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The company’s current institutional recognition score is 7.00, which is lower than the Hotels & Entertainment Services industry's average of 7.45. The latest institutional shareholding proportion is 76.16%, representing a quarter-over-quarter decrease of 0.29%. The largest institutional shareholder is The Vanguard, holding a total of 71.01M shares, representing 9.95% of shares outstanding, with 2.08% 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 company’s current risk assessment score is 6.64, which is higher than the Hotels & Entertainment Services industry's average of 4.22. The company's beta value is 0.49. This indicates that the stock tends to underperform the index during upward trending markets but experiences smaller declines during downward trending markets.
