October 08, 2025 a 06:01 pm
MCD: Fundamental Ratio Analysis - McDonald's Corporation
McDonald's Corporation demonstrates a stable financial position with solid fundamentals. The stock has a mix of strengths and areas for improvement, with a good discounted cash flow and return on assets, accompanied by relatively low debt levels. As a well-established company in the consumer cyclical sector, it offers consistent value to investors with strong global brand recognition.
Fundamental Rating
McDonald's continues to maintain a robust overall score reflective of its stable financial structure, though some areas such as return on equity need attention.
| Category | Score | Score Bar |
|---|---|---|
| Discounted Cash Flow | 5 | |
| Return on Equity | 1 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
The historical data reflects McDonald's consistent approach to maintaining its financial strengths over time.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-08 | 3 | 5 | 1 | 5 | 1 | 3 | 1 |
| Previous | 0 | 5 | 1 | 5 | 1 | 3 | 1 |
Analyst Price Targets
Analyst projections suggest a potential price range with the consensus maintaining a positive outlook on the stock.
| High | Low | Median | Consensus |
|---|---|---|---|
| 350 | 315 | 345 | 336.67 |
Analyst Sentiment
The sentiment among analysts is predominantly positive, with a strong inclination towards buying the stock.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 35 | |
| Hold | 25 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
McDonald's Corporation maintains a strong market position with its extensive global reach and consistent brand value. Its financial indicators, while robust in cash flow and asset returns, show potential areas for growth in equity returns. The stock enjoys favorable analyst sentiment, reflected in stable buy recommendations and attractive price targets. Continued focus on improving return on equity could enhance its appeal further to investors. Overall, MCD appears to be a promising investment with enduring brand strength.