Mcdonald’s Corporation Stock Intrinsic Value – NatWest Group plc reduces stake in McDonald’s by 23.5% in fourth quarter, according to report
March 26, 2024
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MCDONALD’S ($NYSE:MCD): McDonald’s Corporation is a leading global fast food company known for its iconic golden arches and famous menu items such as the Big Mac and french fries.
However, recent reports show that one of McDonald’s major shareholders, NatWest Group plc, has reduced its stake in the company by 23.5% in the fourth quarter of the year. This news comes from HoldingsChannel.com, a website that tracks insider buying and selling activity in publicly traded companies. NatWest Group plc, formerly known as Royal Bank of Scotland Group, is a multinational financial services company headquartered in Edinburgh, Scotland. The company’s decision to decrease its ownership in McDonald’s is significant given its large stake in the fast food giant. This move could indicate a change in investment strategy for NatWest or potentially reflect a lack of confidence in McDonald’s performance. The reduction in stake also raises questions about McDonald’s current financial standing and future prospects. In recent years, the company has faced challenges such as declining sales and changing consumer preferences towards healthier food options. This has led to McDonald’s implementing new strategies, such as introducing plant-based options and investing in digital technology to improve customer experience. Despite these challenges, McDonald’s has shown resilience and has continued to be a profitable company. However, with McDonald’s actively working to adapt to changing consumer trends and improve its financial performance, it will be interesting to see how this development affects the fast food giant in the long term. In conclusion, NatWest Group plc’s recent reduction in stake in McDonald’s Corporation has caught the attention of investors and industry analysts. As one of the major shareholders in the company, this move could have implications for McDonald’s stock value and future growth. Only time will tell how this decision will impact McDonald’s and its position in the highly competitive fast food market.
Analysis – Mcdonald’s Corporation Stock Intrinsic Value
As a financial analyst at GoodWhale, my team and I have conducted a thorough analysis of the welfare of MCDONALD’S CORPORATION. We have taken into account various factors such as its financial performance, market trends, and competitive landscape. Based on our analysis, we have determined that MCDONALD’S CORPORATION is in a stable financial position. Its revenue has consistently increased over the years, and its profitability ratios are strong compared to its industry peers. This indicates that the company is generating healthy profits and managing its resources efficiently. In terms of market trends, MCDONALD’S CORPORATION has a strong presence in the fast-food industry and has successfully expanded globally. It has also adapted to changing consumer preferences by introducing healthier menu options and investing in digital technology to improve customer experience. Furthermore, our proprietary Valuation Line indicates that the intrinsic value of MCDONALD’S CORPORATION share is currently around $287.0. This valuation is based on the company’s financials, growth prospects, and market conditions. It serves as a benchmark for determining if a stock is undervalued or overvalued. At the current market price of $278.6, MCDONALD’S CORPORATION stock is trading at a slight discount to its intrinsic value. This means that it is currently undervalued by 2.9%, making it an attractive investment opportunity. With its stock currently undervalued, it presents an opportunity for investors to purchase shares at a discounted price. However, as with any investment, it is essential to conduct further research and consider one’s own financial goals before making any investment decisions. 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
NatWest Group plc has decreased its ownership of McDonald’s Co. by 23.5% in the fourth quarter, according to recent reports. This move suggests that the company is reducing its stake in McDonald’s, which may be a result of their analysis of the fast food giant’s performance and future prospects. This shows that NatWest Group plc may not have a positive outlook on the company’s potential for growth and profitability. It will be interesting to see if other investors follow suit and reduce their own stakes in McDonald’s, as this could potentially impact the company’s stock performance in the future.
