October 25, 2025 a 01:00 pm
MCD: Fundamental Ratio Analysis - McDonald's Corporation
The McDonald's Corporation stock, with the symbol MCD, offers a stable investment opportunity in the consumer cyclical sector, particularly in the restaurant industry. Despite challenges in the economic environment, McDonald's has proven its resilience with strong brand loyalty and an expansive global presence. However, investors should consider the company's current valuation and market conditions before making investments.
Fundamental Rating
McDonald's holds a fundamental rating of B, indicating its moderately strong financial position but areas with room for improvement.
| Category | Score | Visual |
|---|---|---|
| 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
This historical data highlights the consistency in McDonald's financial scores over the recent period.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-24 | 3 | 5 | 1 | 5 | 1 | 3 | 1 |
| null | 0 | 5 | 1 | 5 | 1 | 3 | 1 |
Analyst Price Targets
Analyst projections for McDonald’s indicate a positive outlook with targeted growth within a defined price range.
| High | Low | Median | Consensus |
|---|---|---|---|
| 362 | 295 | 335 | 332.2 |
Analyst Sentiment
The consensus among analysts reflects general confidence in McDonald’s stock with a majority recommending a buy.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 35 | |
| Hold | 25 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
McDonald’s Corporation remains a key player in the restaurant sector with solid financials and a robust global framework. While the company's valuation metrics indicate a moderately priced stock, strategic investments and brand loyalty could drive future growth. Nevertheless, investors should remain vigilant regarding potential market volatility and shifts in consumer preferences. The analyst consensus suggests strong confidence with a recommended buy, although performance should be monitored alongside economic conditions. Overall, MCD holds promising prospects with moderate risks.