About McDonald's Corp
McDonald's Corp (MCD) is a Consumer Cyclical company in the Retail-Eating Places industry with a market capitalisation of $176.7B. The stock trades at 20.18x trailing earnings and yields 2.99%.
- Sector
- Consumer Cyclical
- Industry
- Retail-Eating Places
- Market cap
- $176.7B
- P/E ratio
- 20.18
- EPS (TTM)
- $11.95
- Revenue (TTM)
- $26.9B
- Free cash flow
- $7.2B
- Profit margin
- 31.9%
- Dividend yield
- 2.99%
- Shares outstanding
- 707.6M
Financial health: Fair6/10
5 strengths, 3 concerns. Weakest points: net debt vs cash flow, current ratio, return on equity.
- Debt to equity: -22.72 (Strong, benchmark < 0.5) — Debt of -22.72x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 5.6y (Concern, benchmark < 4 years) — Net debt of $39.9B is 5.6x annual free cash flow — about 6 years of cash flow to repay.
- Current ratio: 0.95 (Concern, benchmark > 1.5) — Short-term assets cover only 0.95x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: -478.1% (Concern, benchmark > 15%) — Earns -478.1% on shareholder equity, well short of the > 15% mark.
- Gross margin: 57.4% (Strong, benchmark > 40%) — Keeps 57.4% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 31.9% (Strong, benchmark > 10%) — Turns 31.9% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $7.2B (Strong, benchmark positive) — Generated $7.2B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 3.7% (Watch, benchmark > 10%) — Revenue changed 3.7% year on year, short of the > 10% mark.
- Earnings growth: 4.1% (Watch, benchmark > 10%) — Earnings changed 4.1% year on year, short of the > 10% mark.
- Payout ratio: 59.7% (Strong, benchmark < 60%) — Pays out 59.7% of earnings as dividends, leaving room to keep paying.