McDonald's Corporation operates and franchises McDonald's hamburger-focused restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company was founded in 1940 and is based in Oak Brook, Illinois.
MCD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mcdonalds Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mcdonalds Corp ranked in the 19th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Mcdonalds Corp, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 6.32 -- which is good for besting 72.06% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Mcdonalds Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 14.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Mcdonalds Corp? See BBW, CARS, MCFT, VAC, and BJRI.
Wells Fargo thinks McDonald's (MCD) pulled the right levers with the Travis Scott meal and Spicy Nuggets menu addition helping to drive traffic. "MCD's Sept promotions have done quite well (relative to recent months sales and expectations), with the Travis Scott Meal helping the brand connect with an audience that’s...
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