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MCD logo MCD
Upturn stock ratingUpturn stock rating
MCD logo

McDonald’s Corporation (MCD)

Upturn stock ratingUpturn stock rating
$292.17
Last Close (24-hour delay)
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

06/30/2025: MCD (2-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

ratingratingratingratingrating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

36 Analysts rated it

These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.

Year Target Price $328.04

Year Target Price $328.04

Analyst’s Price TargetsFor last 52 week
$328.04Target price
Low$237.93
Current$292.17
high$324.48

Analysis of Past Performance

Type Stock
Historic Profit 14.29%
Avg. Invested days 54
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 208.91B USD
Price to earnings Ratio 25.76
1Y Target Price 328.04
Price to earnings Ratio 25.76
1Y Target Price 328.04
Volume (30-day avg) 36
Beta 0.56
52 Weeks Range 237.93 - 324.48
Updated Date 06/30/2025
52 Weeks Range 237.93 - 324.48
Updated Date 06/30/2025
Dividends yield (FY) 2.43%
Basic EPS (TTM) 11.34

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 31.75%
Operating Margin (TTM) 44.58%

Management Effectiveness

Return on Assets (TTM) 13.42%
Return on Equity (TTM) -

Valuation

Trailing PE 25.76
Forward PE 23.75
Enterprise Value 259992791556
Price to Sales(TTM) 8.13
Enterprise Value 259992791556
Price to Sales(TTM) 8.13
Enterprise Value to Revenue 10.11
Enterprise Value to EBITDA 18.73
Shares Outstanding 715033024
Shares Floating 713881524
Shares Outstanding 715033024
Shares Floating 713881524
Percent Insiders 0.22
Percent Institutions 75.86

Analyst Ratings

Rating 5
Target Price 328.04
Buy 6
Strong Buy 15
Buy 6
Strong Buy 15
Hold 15
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

McDonald’s Corporation

stock logo

Company Overview

overview logo History and Background

McDonald's Corporation was founded in 1940 by Richard and Maurice McDonald as a restaurant. Ray Kroc joined the company as a franchise agent in 1954 and subsequently purchased it in 1961. It has evolved into the world's largest restaurant chain by revenue.

business area logo Core Business Areas

  • Franchising: McDonald's primarily operates under a franchising model, granting licenses to franchisees to operate restaurants under the McDonald's brand. They collect royalties and fees from these franchisees.
  • Company-Operated Restaurants: McDonald's also owns and operates restaurants directly, generating revenue through food and beverage sales.
  • Real Estate: McDonaldu2019s derives revenue and profit from owning or leasing properties that are then subleased to franchisees.

leadership logo Leadership and Structure

McDonald's has a CEO (currently Chris Kempczinski) who leads a team of executives responsible for various functions, including operations, finance, and marketing. The company has a hierarchical structure with regional and divisional management overseeing restaurant operations.

Top Products and Market Share

overview logo Key Offerings

  • Big Mac: The Big Mac is a signature hamburger, popular worldwide. Competitors include similar offerings from Burger King (Whopper) and Wendy's (Dave's Single). Market share data is difficult to isolate to a single product.
  • McDonald's Fries: McDonald's french fries are a globally recognized side dish. Competitors include fries from Burger King, Wendy's, and other fast-food chains. Market share data is difficult to isolate to a single product.
  • Happy Meal: The Happy Meal is a meal targeted at children, often including a toy. Competitors include kids' meals from Burger King and Wendy's. Market share data is difficult to isolate to a single product.
  • Coffee: McDonald's McCafe offers a variety of coffee drinks. Competitors include Starbucks (SBUX) and Dunkin' (DNKN). Market share data is difficult to isolate to a single product.

Market Dynamics

industry overview logo Industry Overview

The quick-service restaurant (QSR) industry is highly competitive, characterized by changing consumer preferences, technological advancements (e.g., mobile ordering), and increasing health consciousness.

Positioning

McDonald's is the largest QSR chain globally. Its competitive advantages include brand recognition, extensive global footprint, strong supply chain, and economies of scale.

Total Addressable Market (TAM)

The global fast-food market is projected to reach several hundred billion dollars. McDonald's aims to capture a significant portion through menu innovation, digital strategies, and expansion.

Upturn SWOT Analysis

Strengths

  • Global Brand Recognition
  • Extensive Franchise Network
  • Strong Supply Chain
  • Economies of Scale
  • Real Estate Portfolio

Weaknesses

  • Perception of Unhealthy Food
  • Dependence on Franchisees
  • Menu Complexity
  • Negative Publicity (e.g., worker wages)

Opportunities

  • Menu Innovation (Healthier Options)
  • Digitalization (Mobile Ordering, Delivery)
  • Expansion in Emerging Markets
  • Partnerships (e.g., with delivery services)
  • Technology Investment

Threats

  • Changing Consumer Preferences
  • Increased Competition
  • Rising Labor Costs
  • Food Safety Concerns
  • Economic Downturns

Competitors and Market Share

competitor logo Key Competitors

  • YUM
  • QSR
  • WEN

Competitive Landscape

McDonald's benefits from scale and brand recognition, but faces competition from companies like Yum! Brands, Restaurant Brands International, and Wendy's. It needs to address changing consumer preferences for healthier and more convenient food options.

Major Acquisitions

Dynamic Yield

  • Year: 2019
  • Acquisition Price (USD millions): 300
  • Strategic Rationale: Personalization technology to enhance customer experience and drive-thru efficiency.

Growth Trajectory and Initiatives

Historical Growth: McDonald's has grown steadily over the past decades, driven by global expansion and menu innovation.

Future Projections: Analysts generally project continued moderate growth for McDonald's, driven by international expansion and digital initiatives.

Recent Initiatives: Recent initiatives include investment in technology (e.g., mobile ordering, AI drive-thru), menu innovation (e.g., plant-based options), and remodeling restaurants.

Summary

McDonald's is a strong, established company with a dominant position in the QSR industry. Its global brand recognition and extensive franchise network are key strengths. However, it needs to address changing consumer preferences and competition by focusing on menu innovation, digital strategies, and operational efficiency.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company SEC Filings (e.g., 10-K reports)
  • Market Research Reports (e.g., IBISWorld, Statista)
  • Analyst Reports (e.g., from brokerage firms)
  • Company Press Releases
  • Publicly Available Financial Data (e.g., Yahoo Finance)

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Financial data and market conditions are subject to change. Consult with a qualified financial advisor before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About McDonald’s Corporation

Exchange NYSE
Headquaters Chicago, IL, United States
IPO Launch date 1965-04-21
Chairman President, & CEO Mr. Christopher J. Kempczinski
Sector Consumer Cyclical
Industry Restaurants
Full time employees 150000
Full time employees 150000

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.