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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.20
MCD's Cash to Debt is ranked lower than
55% of the 310 Companies
in the Global Restaurants industry.

( Industry Median: 0.73 vs. MCD: 0.20 )
MCD' s 10-Year Cash to Debt Range
Min: 0.03   Max: 0.47
Current: 0.2

0.03
0.47
Equity to Asset 0.44
MCD's Equity to Asset is ranked higher than
59% of the 306 Companies
in the Global Restaurants industry.

( Industry Median: 0.49 vs. MCD: 0.44 )
MCD' s 10-Year Equity to Asset Range
Min: 0.41   Max: 0.54
Current: 0.44

0.41
0.54
Interest Coverage 16.79
MCD's Interest Coverage is ranked higher than
65% of the 199 Companies
in the Global Restaurants industry.

( Industry Median: 16.79 vs. MCD: 16.79 )
MCD' s 10-Year Interest Coverage Range
Min: 5.65   Max: 17.31
Current: 16.79

5.65
17.31
F-Score: 5
Z-Score: 6.11
M-Score: -2.71
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 31.18
MCD's Operating margin (%) is ranked higher than
95% of the 258 Companies
in the Global Restaurants industry.

( Industry Median: 7.58 vs. MCD: 31.18 )
MCD' s 10-Year Operating margin (%) Range
Min: 13.72   Max: 31.58
Current: 31.18

13.72
31.58
Net-margin (%) 19.87
MCD's Net-margin (%) is ranked higher than
96% of the 258 Companies
in the Global Restaurants industry.

( Industry Median: 4.83 vs. MCD: 19.87 )
MCD' s 10-Year Net-margin (%) Range
Min: 5.8   Max: 20.55
Current: 19.87

5.8
20.55
ROE (%) 34.89
MCD's ROE (%) is ranked higher than
95% of the 252 Companies
in the Global Restaurants industry.

( Industry Median: 10.84 vs. MCD: 34.89 )
MCD' s 10-Year ROE (%) Range
Min: 8.69   Max: 38.24
Current: 34.89

8.69
38.24
ROA (%) 15.25
MCD's ROA (%) is ranked higher than
96% of the 259 Companies
in the Global Restaurants industry.

( Industry Median: 5.08 vs. MCD: 15.25 )
MCD' s 10-Year ROA (%) Range
Min: 3.73   Max: 16.68
Current: 15.25

3.73
16.68
ROC (Joel Greenblatt) (%) 34.04
MCD's ROC (Joel Greenblatt) (%) is ranked higher than
79% of the 257 Companies
in the Global Restaurants industry.

( Industry Median: 19.63 vs. MCD: 34.04 )
MCD' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 11.37   Max: 37.35
Current: 34.04

11.37
37.35
Revenue Growth (%) 7.80
MCD's Revenue Growth (%) is ranked higher than
79% of the 241 Companies
in the Global Restaurants industry.

( Industry Median: 5.80 vs. MCD: 7.80 )
MCD' s 10-Year Revenue Growth (%) Range
Min: 5.8   Max: 11
Current: 7.8

5.8
11
EBITDA Growth (%) 8.30
MCD's EBITDA Growth (%) is ranked higher than
73% of the 206 Companies
in the Global Restaurants industry.

( Industry Median: 6.30 vs. MCD: 8.30 )
MCD' s 10-Year EBITDA Growth (%) Range
Min: -7.2   Max: 23.5
Current: 8.3

-7.2
23.5
EPS Growth (%) 6.60
MCD's EPS Growth (%) is ranked higher than
67% of the 161 Companies
in the Global Restaurants industry.

( Industry Median: 7.70 vs. MCD: 6.60 )
MCD' s 10-Year EPS Growth (%) Range
Min: -17.9   Max: 37.9
Current: 6.6

-17.9
37.9
» MCD's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

MCD Guru Trades in Q2 2013

Joel Greenblatt 2,836 sh (New)
Louis Moore Bacon 20,000 sh (New)
John Hussman 3,500 sh (+66.67%)
Bill Nygren 1,559,000 sh (+62.57%)
Jim Simons 6,354,900 sh (+37.61%)
Jim Chanos 147,190 sh (+21.54%)
Ken Fisher 5,226,188 sh (+0.43%)
Ruane Cunniff 72,286 sh (+0.28%)
Wintergreen Fund 104,334 sh (unchged)
Bill Gates 9,872,500 sh (unchged)
Tom Russo 5,185 sh (unchged)
David Winters 130,930 sh (unchged)
Stanley Druckenmiller Sold Out
Meridian Funds Sold Out
Steven Cohen Sold Out
Tom Gayner 189,462 sh (-0.21%)
Bill Frels 19,471 sh (-1.05%)
Jeremy Grantham 7,773,519 sh (-1.53%)
Jeff Auxier 19,704 sh (-2.11%)
Manning & Napier Advisors, Inc 294,988 sh (-3.25%)
Robert Olstein 42,000 sh (-4.55%)
James Barrow 4,700 sh (-6%)
Diamond Hill Capital 1,402,617 sh (-9.67%)
Pioneer Investments 648,645 sh (-10.73%)
Dodge & Cox 66,578 sh (-14.07%)
Meryl Witmer 787,272 sh (-21.67%)
Murray Stahl 2,841 sh (-21.97%)
» More
Q3 2013

MCD Guru Trades in Q3 2013

Steven Cohen 106,708 sh (New)
Murray Stahl 9,954 sh (+250.37%)
Joel Greenblatt 8,869 sh (+212.73%)
Ruane Cunniff 137,256 sh (+89.88%)
John Hussman 5,000 sh (+42.86%)
Bill Nygren 2,059,000 sh (+32.07%)
Jim Simons 7,462,400 sh (+17.43%)
Bill Frels 19,817 sh (+1.78%)
Ken Fisher 5,308,180 sh (+1.57%)
Jeff Auxier 19,704 sh (unchged)
Bill Gates 9,872,500 sh (unchged)
Robert Olstein 42,000 sh (unchged)
David Winters Sold Out
Louis Moore Bacon Sold Out
Wintergreen Fund Sold Out
Jeremy Grantham 7,762,911 sh (-0.14%)
Dodge & Cox 65,878 sh (-1.05%)
Pioneer Investments 639,028 sh (-1.48%)
Tom Gayner 185,113 sh (-2.3%)
Manning & Napier Advisors, Inc 284,468 sh (-3.57%)
Diamond Hill Capital 1,315,249 sh (-6.23%)
James Barrow 4,200 sh (-10.64%)
Tom Russo 4,091 sh (-21.1%)
Jim Chanos 111,790 sh (-24.05%)
» More
Q4 2013

MCD Guru Trades in Q4 2013

First Pacific Advisors 43,500 sh (New)
Paul Tudor Jones 5,026 sh (New)
John Hussman 205,000 sh (+4000%)
Joel Greenblatt 52,880 sh (+496.23%)
Bill Gates 10,872,500 sh (+10.13%)
Diamond Hill Capital 1,364,544 sh (+3.75%)
Bill Nygren 2,089,000 sh (+1.46%)
Jim Simons 7,570,700 sh (+1.45%)
Jeff Auxier 19,704 sh (unchged)
James Barrow 4,200 sh (unchged)
Ruane Cunniff 137,256 sh (unchged)
Jim Chanos Sold Out
Tom Gayner 184,700 sh (-0.22%)
Bill Frels 19,646 sh (-0.86%)
Ken Fisher 5,228,236 sh (-1.51%)
Manning & Napier Advisors, Inc 276,363 sh (-2.85%)
Tom Russo 3,960 sh (-3.2%)
Dodge & Cox 63,678 sh (-3.34%)
Robert Olstein 38,000 sh (-9.52%)
Pioneer Investments 560,024 sh (-12.36%)
Murray Stahl 7,954 sh (-20.09%)
Jeremy Grantham 5,860,005 sh (-24.51%)
Steven Cohen 23,916 sh (-77.59%)
» More
Q1 2014

MCD Guru Trades in Q1 2014

HOTCHKIS & WILEY 1,508,899 sh (New)
Caxton Associates 100,000 sh (New)
Steven Cohen 360,156 sh (+1405.92%)
Joel Greenblatt 143,942 sh (+172.2%)
Paul Tudor Jones 10,228 sh (+103.5%)
Bill Nygren 2,389,000 sh (+14.36%)
Jim Simons 8,521,387 sh (+12.56%)
Bill Frels 21,293 sh (+8.38%)
Manning & Napier Advisors, Inc 285,987 sh (+3.48%)
Ruane Cunniff 137,319 sh (+0.05%)
Bill Gates 10,872,500 sh (unchged)
James Barrow 4,200 sh (unchged)
First Pacific Advisors 43,500 sh (unchged)
Tom Russo 3,960 sh (unchged)
Jeff Auxier 19,704 sh (unchged)
Robert Olstein 38,000 sh (unchged)
Pioneer Investments 558,017 sh (-0.36%)
Tom Gayner 181,000 sh (-2%)
Ken Fisher 5,118,180 sh (-2.11%)
Dodge & Cox 60,419 sh (-5.12%)
Murray Stahl 7,013 sh (-11.83%)
Diamond Hill Capital 1,115,686 sh (-18.24%)
Jeremy Grantham 3,951,363 sh (-32.57%)
John Hussman 105,000 sh (-48.78%)
» More
» Details

Insider Trades

Latest Guru Trades with MCD

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2014-03-31 Reduce -48.78%0.68%$93.02 - $98.78 $ 101.046%105000
Joel Greenblatt 2014-03-31 Add 172.2%0.13%$93.02 - $98.78 $ 101.046%143942
John Hussman 2013-12-31 Add 4000%1.37%$93.27 - $98.92 $ 101.045%205000
Joel Greenblatt 2013-12-31 Add 496.23%0.1%$93.27 - $98.92 $ 101.045%52880
Ruane Cunniff 2013-09-30 Add 89.88%0.04%$94.36 - $101.58 $ 101.044%137256
Joel Greenblatt 2013-09-30 Add 212.73%0.02%$94.36 - $101.58 $ 101.044%8869
John Hussman 2013-09-30 Add 42.86%0.01%$94.36 - $101.58 $ 101.044%5000
Meridian Funds 2013-06-30 Sold Out 0.02%$96.42 - $103.59 $ 101.041%0
John Hussman 2013-06-30 Add 66.67%0.01%$96.42 - $103.59 $ 101.041%3500
Joel Greenblatt 2013-06-30 New Buy0.01%$96.42 - $103.59 $ 101.041%2836
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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Bill & Melinda Gates Foundation Trust has reported its fourth quarter portfolio. The foundation portfolio usually invests in blue chips that are traded at reasonable prices.  It buys McDonald's, Exxon Mobil, Caterpillar Inc, Wal-Mart etc, sells Procter & Gamble Co, Air Products & Chemicals Inc, Toyota Motor Corp, Diamond Foods, Inc. during the 3-months ended 12/31/2013, according to the most recent filings of his investment company, Bill & Melinda Gates Foundation Trust. As of 12/31/2013, Bill & Melinda Gates Foundation Trust owns 18 stocks with a total value of $20.1 billion. These are the details of the buys and sells. Read more...
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Bill Nygren's Oakmark Fund's Second Quarter Portfolio Increases
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Ratios

vs
industry
vs
history
P/E(ttm) 18.20
MCD's P/E(ttm) is ranked higher than
87% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 31.10 vs. MCD: 18.20 )
MCD' s 10-Year P/E(ttm) Range
Min: 13.39   Max: 32.97
Current: 18.2

13.39
32.97
P/B 6.10
MCD's P/B is ranked lower than
53% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 3.29 vs. MCD: 6.10 )
MCD' s 10-Year P/B Range
Min: 2.43   Max: 7.27
Current: 6.1

2.43
7.27
P/S 3.60
MCD's P/S is ranked lower than
58% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 1.21 vs. MCD: 3.60 )
MCD' s 10-Year P/S Range
Min: 1.79   Max: 3.93
Current: 3.6

1.79
3.93
PFCF 22.10
MCD's PFCF is ranked higher than
80% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 63.85 vs. MCD: 22.10 )
MCD' s 10-Year PFCF Range
Min: 14.54   Max: 35.63
Current: 22.1

14.54
35.63
EV-to-EBIT 12.70
MCD's EV-to-EBIT is ranked higher than
83% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 21.16 vs. MCD: 12.70 )
MCD' s 10-Year EV-to-EBIT Range
Min: 10.5   Max: 20.9
Current: 12.7

10.5
20.9
PEG 2.00
MCD's PEG is ranked higher than
87% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 9999.00 vs. MCD: 2.00 )
MCD' s 10-Year PEG Range
Min: 0.85   Max: 68.22
Current: 2

0.85
68.22
Shiller P/E 19.70
MCD's Shiller P/E is ranked higher than
95% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 9999.00 vs. MCD: 19.70 )
MCD' s 10-Year Shiller P/E Range
Min: 17.92   Max: 34.12
Current: 19.7

17.92
34.12

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.20
MCD's Dividend Yield is ranked higher than
80% of the 210 Companies
in the Global Restaurants industry.

( Industry Median: 1.31 vs. MCD: 3.20 )
MCD' s 10-Year Dividend Yield Range
Min: 1.39   Max: 4.95
Current: 3.2

1.39
4.95
Dividend Payout 0.57
MCD's Dividend Payout is ranked higher than
85% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 9999.00 vs. MCD: 0.57 )
MCD' s 10-Year Dividend Payout Range
Min: 0.12   Max: 4.08
Current: 0.57

0.12
4.08
Dividend growth (3y) 11.30
MCD's Dividend growth (3y) is ranked higher than
76% of the 122 Companies
in the Global Restaurants industry.

( Industry Median: 7.40 vs. MCD: 11.30 )
MCD' s 10-Year Dividend growth (3y) Range
Min: 7.2   Max: 41.8
Current: 11.3

7.2
41.8
Yield on cost (5-Year) 5.49
MCD's Yield on cost (5-Year) is ranked higher than
87% of the 210 Companies
in the Global Restaurants industry.

( Industry Median: 1.43 vs. MCD: 5.49 )
MCD' s 10-Year Yield on cost (5-Year) Range
Min: 2.38   Max: 8.49
Current: 5.49

2.38
8.49
Share Buyback Rate 2.30
MCD's Share Buyback Rate is ranked higher than
90% of the 204 Companies
in the Global Restaurants industry.

( Industry Median: -0.20 vs. MCD: 2.30 )
MCD' s 10-Year Share Buyback Rate Range
Min: 4   Max: -0.4
Current: 2.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 7.50
MCD's Price/Tangible Book is ranked higher than
56% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 5.15 vs. MCD: 7.50 )
MCD' s 10-Year Price/Tangible Book Range
Min: 2.03   Max: 8.73
Current: 7.5

2.03
8.73
Price/DCF (Projected) 1.60
MCD's Price/DCF (Projected) is ranked higher than
88% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 9999.00 vs. MCD: 1.60 )
MCD' s 10-Year Price/DCF (Projected) Range
Min: 1.22   Max: 4.52
Current: 1.6

1.22
4.52
Price/Median PS Value 1.20
MCD's Price/Median PS Value is ranked higher than
73% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 1.36 vs. MCD: 1.20 )
MCD' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.71
Current: 1.2

0.4
1.71
Price/Peter Lynch Fair Value 2.00
MCD's Price/Peter Lynch Fair Value is ranked higher than
92% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 9999.00 vs. MCD: 2.00 )
MCD' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.86   Max: 5.2
Current: 2

0.86
5.2
Price/Graham Number 2.50
MCD's Price/Graham Number is ranked higher than
74% of the 326 Companies
in the Global Restaurants industry.

( Industry Median: 4.83 vs. MCD: 2.50 )
MCD' s 10-Year Price/Graham Number Range
Min: 1.23   Max: 3.41
Current: 2.5

1.23
3.41
Earnings Yield (Greenblatt) 7.90
MCD's Earnings Yield (Greenblatt) is ranked higher than
81% of the 286 Companies
in the Global Restaurants industry.

( Industry Median: 5.60 vs. MCD: 7.90 )
MCD' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.8   Max: 9.6
Current: 7.9

4.8
9.6
Forward Rate of Return (Yacktman) 12.46
MCD's Forward Rate of Return (Yacktman) is ranked higher than
76% of the 194 Companies
in the Global Restaurants industry.

( Industry Median: 10.24 vs. MCD: 12.46 )
MCD' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -1.1   Max: 22.9
Current: 12.46

-1.1
22.9

Business Description

Industry: Restaurants » Restaurants
Compare:BH, CMG, DIN, SBUX, IRG » details
Traded in other countries:MDO.Germany
McDonald's Corporation was incorporated in the state of Delaware. The Company franchises and operates McDonald's restaurants in the food service industry. These restaurants serve a varied, yet limited, value-priced menu in more than 100 countries around the world. The Company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers. The Company has quality assurance labs around the world to ensure that its high standards are consistently met. The quality assurance process not only involves ongoing product reviews, but also on-site inspections of suppliers' facilities. McDonald's restaurants offer a considerably uniform menu, although there might be geographic variations. In addition, McDonald's tests new products on an ongoing basis. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Chicken Selects, french fries, premium salads, shakes, McFlurry desserts, sundaes, soft serve cones, pies, cookies, soft drinks, coffee and other beverages. In addition, the restaurants sell a variety of other products during limited-time promotions. McDonald's restaurants in the U.S. and many international markets offer a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches, hotcakes and muffins. Restaurants owned by subsidiaries of the Company regularly serve a large segment of the public. In so doing, disputes arise as to products, service, incidents, advertising, nutritional and other disclosures as well as other matters common to an extensive restaurant business such as that of the Company. The Company considers the trademarks 'McDonald's' and 'The Golden Arches Logo' to be of material importance to its business. McDonald's restaurants compete with international, national, regional and local retailers of food products. Local, state and federal governments have adopted laws and regulations involving various aspects of the restaurant business including, but not limited to, advertising, franchising, health, safety, environment, zoning and employment.
» More Articles for MCD

Headlines

Articles On GuruFocus.com
Wait Before You Write-off McDonald's From Your Potential Investments! Jul 09 2014 
What Would You Pay For This Company: The Golden Arches Jul 02 2014 
Dividend Investors - Should We Stay? Or Cut And Run? Jun 26 2014 
Bonds Look Morbid When Compared To These Dividend Stocks Jun 25 2014 
Investors Are Paying a Big Price for McDonald's Growth Jun 24 2014 
Running an Offense or Defense? Jun 22 2014 
Stay Invested In McDonald's Jun 21 2014 
Dividend Analysis of 3 Restaurant Stocks Jun 20 2014 
Bonds Look Morbid When Compared to These Dividend Stocks Jun 11 2014 
Why Investing New Capital During All-Time Market Highs Doesn’t Scare Me Jun 09 2014 

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