McDonald's Corporation Stock Price and Value Analysis

Should you buy McDonald's Corporation stock? (NYSE:MCD). Let's see how it does in our automated value investing analysis system.

MCD Free Cash Flow Trend

Free Cash Flow trendline for MCD
Free Cash Flow trendline for McDonald's Corporation

Based on historical returns, we believe that McDonald's Corporation can grow its free cash at a rate of about 3%. That's positive!

AdvantagesDisadvantages
  • This company has a high dividend yield.
  • This company has stable growth.
  • This company is a well-established bedrock.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the MCD Numbers

MCD Price
(McDonald's Corporation stock price per share)
$207.37
[?] MCD Fair Price
(based on intrinsic value)
$43.63
[?] MCD Safety Price (based on a variable margin of safety) $37.09
[?] PE Ratio versus Sector 136% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 53% higher than other Restaurants stocks
[?] Cash Yield 4.07%
[?] Free Cash Flow Jitter 12%
[?] Dividend Yield 3%
Shares Shorted 5,131,064

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 5,131,064 shares shorted. With 744,983,143 shares available for purchase and an average trading volume over the past 10 trading days of 3,514,585, it would take at least 1.46 days for all of the short holders to cover their shorts.

Is McDonald's Corporation Stock on Sale?

We believe that McDonald's Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

McDonald's Corporation looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MCD Stock?

Does McDonald's Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.