Fast-Casual Restaurant Stocks Lost Their Sizzle. What Could Bring Them Back.
Fast-casual chains provide fresh food on the go. But these days, they also have to provide value for cost-conscious consumers.
Fiscal Year: January - December
McDonald's Corporation (MCD), listed on the NYSE, has a market capitalization of $. As of Oct 04, 2025, the stock is trading at $300.98 per share, offering investors a clear view of its current market value. McDonald's Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 25.79, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. McDonald's Corporation also offers a dividend yield of 2.36%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that McDonald's Corporation (MCD) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for McDonald's Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for McDonald's Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for McDonald's Corporation is 31.14, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, McDonald's Corporation (MCD) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether McDonald's Corporation (MCD) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of McDonald's Corporation (MCD) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of McDonald's Corporation. To access the full SS Score, consider upgrading your subscription.
McDonald's Corporation is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 25.79. Investors should compare these metrics with industry peers to gauge whether McDonald's Corporation is outperforming or underperforming within its sector.
Fast-casual chains provide fresh food on the go. But these days, they also have to provide value for cost-conscious consumers.
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TD Bank expert predicted McDonald's value proposition would force restaurant rivals to follow suit with their own discounts and promotional offerings.
McDonald's could present itself as a stronger investment compared with its fast-food peers, according to analysts at Citi. The bank raised its price target on the fast food giant to $381 per share fro...
MCD's recovery prospects appear bright in FY2026, thanks to the potentially easier YoY comparisons and the higher comparable sales/traffic from increased emphasis on value combo menus. This is on top ...
Food-forward convenience stores are stealing breakfast customers from fast-food chains. Morning meal traffic to fast-food chains rose 1% in the three months ended in July, while visits to food-forward...
McDonald's remains a safe, defensive dividend stock with global brand strength, appealing to income-focused investors seeking stability and lower volatility. Despite strong Q2 2025 results and impress...
McDonald's has raised its dividend for 48 consecutive years, supported by strong free cash flow and unmatched profitability within the restaurant industry. Q2 2025 delivered solid results, with revenu...
Tech sector gains masked the underperforming stocks in the S&P 500; selective buying and holding is recommended based on company-specific catalysts and sector positioning. Keurig Dr Pepper and Interna...
The ‘Big Money Show' panelists react to the McDonald's CEO warning of a two-tier economy, with some Americans ramping up spending while others are forced to cut back.
The burger giant says workers should all receive a base wage, including tipped servers employed by rivals.
McDonald's CEO Chris Kempczinski warned of a "two-tier economy" as the company reintroduced its Extra Value Meals to draw budget-conscious customers.
CNBC's Kate Rogers reports on news regarding McDonald's.
McDonald's is desperate to reclaim its reputation as a value leader. Its latest tactic: reviving a promo from the 2010s.
McDonald's workers won't see a benefit from the "no tax on tips" change in the Big Beautiful Bill. But the new law points to an "uneven playing field" for restaurants, CEO Chris Kempczinski said.
McDonald's CEO Chris Kempczinski said on Tuesday that while upper-income earners are feeling "quite confident" about the economy, middle and lower-income consumers are "a different story." "What we se...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 7.75B | 16.22% | Est @16.2% |
2026 | 8.84B | 13.96% | Analyst x6 |
2027 | 10.75B | 21.67% | Analyst x2 |
2028 | 10.85B | 0.89% | Analyst x1 |
2029 | 10.98B | 1.20% | Est @1.2% |
2030 | 11.14B | 1.48% | Est @1.5% |
2031 | 11.33B | 1.73% | Est @1.7% |
2032 | 11.55B | 1.91% | Est @1.9% |
2033 | 11.78B | 2.03% | Est @2.0% |
2034 | 12.01B | 1.97% | Est @2.0% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 7.26B | 1.00 | 7.26B |
2024A | 6.67B | 1.00 | 6.67B |
2025E | 7.75B | 1.08 | 7.18B |
2026E | 8.84B | 1.17 | 7.58B |
2027E | 10.75B | 1.26 | 8.54B |
2028E | 10.85B | 1.36 | 7.98B |
2029E | 10.98B | 1.47 | 7.47B |
2030E | 11.14B | 1.59 | 7.02B |
2031E | 11.33B | 1.71 | 6.62B |
2032E | 11.55B | 1.85 | 6.24B |
2033E | 11.78B | 2.00 | 5.90B |
2034E | 12.01B | 2.16 | 5.57B |
Terminal | 224.23B | 2.16 | 103.94B |
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