Mcdonald’s Corporation Stock Fair Value – Concurrent Investment Advisors LLC Increases McDonald’s Holdings by 8.1% in Third Quarter
November 8, 2024
🌥️Trending News
MCDONALD’S CORPORATION ($NYSE:MCD), a global fast food giant, has been making headlines recently as Concurrent Investment Advisors LLC announced an increase in its holdings in the company by 8.1% during the third quarter. The company is known for its iconic golden arches and its diverse menu of burgers, fries, and other fast food items. Concurrent Investment Advisors LLC is a California-based investment management firm that primarily focuses on value-oriented investing. With their increased holdings in McDonald’s, it is clear that they see potential in the company’s stock. The closure of restaurants and limited operations have impacted the company’s sales and profits.
However, McDonald’s has been quick to adapt to the changing market conditions by introducing new safety measures, offering delivery and takeout options, and launching new menu items. Despite these challenges, McDonald’s has remained resilient, with its third-quarter earnings beating analysts’ expectations. This performance has been attributed to strong sales in the United States and continued growth in international markets. The company has been investing heavily in technology, such as self-order kiosks and mobile ordering, to improve customer experience and drive sales.
Additionally, McDonald’s has been expanding its delivery options and introducing plant-based alternatives to cater to changing consumer preferences. With its strong brand, global presence, and strategic investments, McDonald’s is well-positioned for continued growth and success in the future.
Analysis – Mcdonald’s Corporation Stock Fair Value
As a team at GoodWhale, we have thoroughly examined MCDONALD’S CORPORATION‘s fundamentals to determine the fair value of its stock. We have taken into account various aspects such as the company’s financial performance, competitive landscape, and industry trends. After careful analysis, we have calculated the fair value of MCDONALD’S CORPORATION’s share to be around $287.0. This valuation is based on our proprietary Valuation Line, which takes into consideration multiple factors to determine the fair price of a stock. Currently, MCDONALD’S CORPORATION’s stock is trading at $297.17, which means it is overvalued by 3.6% according to our calculations. This suggests that investors may be paying more for the stock than its fair value. While overvaluation may seem like a negative factor, it is important to note that stock prices can fluctuate and may not always reflect the true value of a company. It is also worth mentioning that MCDONALD’S CORPORATION has a strong brand and a history of consistent growth, which could justify a slightly higher stock price. Overall, our analysis suggests that MCDONALD’S CORPORATION’s stock is currently trading at a fair price, with a potential for slight overvaluation. As with any investment, it is important for individuals to conduct their own research and make informed decisions based on their risk tolerance and investment objectives. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mcdonald’s Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 25.49k | 8.47k | 33.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mcdonald’s Corporation. More…
| Operations | Investing | Financing |
| 9.61k | -3.18k | -4.37k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mcdonald’s Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 56.15k | 60.85k | -6.72 |
Key Ratios Snapshot
Some of the financial key ratios for Mcdonald’s Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | 17.4% | 46.6% |
| FCF Margin | ROE | ROA |
| 28.5% | -153.0% | 13.2% |
Peers
McDonald’s Corp is the world’s largest restaurant chain by revenue, serving over 69 million customers daily in over 100 countries across 37,855 outlets as of 2018. The company was founded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they introduced the Speedee Service System, a precursor to the modern fast-food restaurant. The company rapidly expanded worldwide in the 1960s, opening restaurants in Europe, Asia, and Africa. By the early 1980s, McDonald’s had become the largest restaurant chain in the world.
Today, McDonald’s competes with major fast-food chains such as Domino’s Pizza Inc, Starbucks Corp, and The Wendy’s Co. While McDonald’s still dominates the industry, its competitors have been steadily gaining market share in recent years.
– Domino’s Pizza Inc ($NYSE:DPZ)
Domino’s Pizza Inc is a publicly traded company with a market capitalization of $11.45 billion as of 2022. The company has a return on equity of -11.44%. Domino’s Pizza is a pizza restaurant chain that operates in more than 70 countries. The company was founded in 1960 and is headquartered in Ann Arbor, Michigan.
– Starbucks Corp ($NASDAQ:SBUX)
Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of early 2019, the company operates over 30,000 locations worldwide. The company’s market capitalization is 100.42B as of early 2019. The company’s return on equity is -52.08%. Starbucks Corporation is a publicly traded company, with its common stock listed on the Nasdaq Global Select Market under the symbol “SBUX”.
Starbucks is the world’s largest coffeehouse chain, as well as the second largest restaurant chain after McDonald’s, with over 30,000 stores in more than 70 countries. The company sells coffee, tea, pastries, and snacks. Starbucks offers a variety of hot and cold beverages, including whole-bean coffee, microground instant coffee, espresso, teas, and juices. The company also offers food items, such as breakfast sandwiches, salads, soups, pasta, paninis, pastries, and snacks.
– The Wendy’s Co ($NASDAQ:WEN)
The Wendy’s Company is an American holding company for the fast-food chain Wendy’s. As of December 31, 2019, Wendy’s was the world’s third-largest hamburger fast-food chain with 6,711 locations, following Burger King and McDonald’s. Only about 60 percent of its restaurants are owned and operated by Wendy’s franchisees, with the remaining owned and operated by the company.
The Wendy’s Company has a market capitalization of $4.28 billion as of 2022. The company’s return on equity is 61.14%. Wendy’s is the world’s third-largest hamburger fast-food chain with 6,711 locations. The company operates in the United States and Canada.
Summary
Concurrent Investment Advisors LLC increased their stake in McDonald’s Co. by 8.1% during the third quarter. This move reflects a positive outlook on the company’s future performance and potential for growth. Other investors may also be attracted to McDonald’s due to its strong financial performance and stable market position in the fast food industry.
However, potential risks such as competition and changing consumer preferences should also be considered in any analysis of McDonald’s as an investment opportunity. Overall, McDonald’s remains a popular choice for investors due to its solid brand reputation and consistent profitability.
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