A Deep Look Into McDonald’s Stock

A Deep Look Into McDonald’s Stock

What Is McDonald’s?

  • McDonald’s is the most well-known food chain in the world. The company was founded as a barbecue restaurant in California, United States in 1940 by brothers Richard & Maurine McDonald. Eight years later it was transformed to selling hamburgers as we know it today.
  • McDonald’s is the world’s largest fast-food restaurant chain, serving over 69 million customers daily in over 100 countries in 40,000 outlets. McDonald’s food menu includes hamburgers, cheeseburgers, French fries, chicken, fish, fruit & salads.
  • McDonald’s is also a real estate company through its ownership of around 70% of restaurant buildings & 45% of the underlying land. The McDonald’s corporation revenue comes from the rent, royalties & fees paid by the franchises & by selling foods through their restaurant chain. McDonald’s is the 2nd largest employer with 1.7 million employees all over the world.

Financial Performance

  • In 2023 McDonald’s reported $25.5 billion in revenue. If you look at revenue over the past couple of years you can see that it has been increasing. In 2020 the reported revenue for the business was $19.2 billion & within the last 4 years, revenue has increased by $6.3 billion.
  • The net profit figure has been increased from $4.7 billion to $8.4 billion. When we look into the free cash flow figure we can see that free cash flow has increased from $4.6 billion to $7.2 billion within the last couple of years.
  • When we look deep into the balance sheet of the company it is not somewhat in good shape. As the latest financial report in 2023 total assets of the company stand at $56.146 billion. However, the total liabilities are higher than the assets figure. The total liabilities of the company is $60.85 billion. It is not a good sign. As you can see the equity figure is negative at $4.7 billion.

MCD Stocks

  • MCD stock currently trades around $275 per share with a total market cap of $197 billion. The PE ratio is over 23 & they pay a $6.68 dividend per share with a dividend yield standing at 2.44%. 

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