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Upturn AI SWOT - About
MCD 
McDonald’s Corporation (MCD)
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Upturn Advisory Summary
04/01/2025: MCD (3-star) is a STRONG-BUY. BUY since 35 days. Profits (1.69%). Updated daily EoD!
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 16.86% | Avg. Invested days 42 | Today’s Advisory Strong Buy |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 223.18B USD | Price to earnings Ratio 27.42 | 1Y Target Price 328.36 |
Price to earnings Ratio 27.42 | 1Y Target Price 328.36 | ||
Volume (30-day avg) 3627883 | Beta 0.71 | 52 Weeks Range 239.28 - 326.32 | Updated Date 03/31/2025 |
52 Weeks Range 239.28 - 326.32 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 2.31% | Basic EPS (TTM) 11.39 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 31.73% | Operating Margin (TTM) 45.08% |
Management Effectiveness
Return on Assets (TTM) 13.31% | Return on Equity (TTM) - |
Valuation
Trailing PE 27.42 | Forward PE 24.94 | Enterprise Value 270266871175 | Price to Sales(TTM) 8.61 |
Enterprise Value 270266871175 | Price to Sales(TTM) 8.61 | ||
Enterprise Value to Revenue 10.43 | Enterprise Value to EBITDA 19.38 | Shares Outstanding 714460992 | Shares Floating 713318001 |
Shares Outstanding 714460992 | Shares Floating 713318001 | ||
Percent Insiders 0.19 | Percent Institutions 74.3 |
Analyst Ratings
Rating 4.03 | Target Price 323.43 | Buy 6 | Strong Buy 16 |
Buy 6 | Strong Buy 16 | ||
Hold 13 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
McDonald’s Corporation
Company Overview
History and Background
McDonald's Corporation was founded in 1940 by Richard and Maurice McDonald in San Bernardino, California. It began as a barbecue restaurant and was later reorganized as a hamburger stand using assembly line principles in 1948. Ray Kroc joined the company as a franchise agent in 1954 and subsequently purchased it from the McDonald brothers in 1961. McDonald's experienced significant growth in the latter half of the 20th century, expanding internationally and evolving its menu to include a wider range of fast food items.
Core Business Areas
- Franchising: McDonald's core business model relies heavily on franchising. The company owns the real estate for many locations and leases them to franchisees, collecting rent and royalties based on sales.
- Company-Operated Restaurants: McDonald's also operates a smaller portion of its restaurants directly. These locations provide revenue directly from food sales and allow the company to test new menu items and operational strategies.
- Supply Chain Management: The company maintains tight control over its supply chain, ensuring quality and consistency across all locations through approved suppliers.
Leadership and Structure
Chris Kempczinski serves as the President and Chief Executive Officer of McDonald's Corporation. The company has a hierarchical structure with regional managers overseeing operations across various geographic areas. The executive team is responsible for setting strategic direction and managing the company's global operations.
Top Products and Market Share
Key Offerings
- Big Mac: The Big Mac is a signature McDonald's hamburger, consisting of two beef patties, special sauce, lettuce, cheese, pickles, and onions on a sesame seed bun. Competitors include similar burger offerings from Burger King (Whopper) and Wendy's (Dave's Single). McDonald's burgers are estimated to account for around 3% of their total global revenue.
- French Fries: McDonald's French Fries are a widely popular side dish, known for their distinctive flavor and texture. Competitors include french fries from Burger King, Wendy's, and other fast-food chains. Fries make up an estimated 15% of total sales in the United States. Market share data unavailable.
- McNuggets: McDonald's Chicken McNuggets are bite-sized pieces of breaded and fried chicken. They are a popular choice for both children and adults. Competitors include chicken nuggets from Burger King and Wendy's. Market share data unavailable.
Market Dynamics
Industry Overview
The fast-food industry is highly competitive and characterized by evolving consumer preferences, increasing health consciousness, and the rise of delivery services. Trends include demand for healthier options, sustainable packaging, and increased use of technology for ordering and payment.
Positioning
McDonald's is a dominant player in the fast-food industry with a strong brand reputation, global presence, and established franchising system. Its competitive advantages include its scale, brand recognition, real estate portfolio, and efficient operations.
Total Addressable Market (TAM)
The global fast-food market is expected to reach over $930 billion by 2027. McDonald's is well-positioned to capture a significant portion of this market, leveraging its brand and global presence.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive global presence
- Established franchising system
- Efficient operations and supply chain
- Valuable real estate portfolio
Weaknesses
- Negative perceptions regarding healthiness of food
- Reliance on franchisee performance
- Vulnerability to changing consumer preferences
- Operational challenges in diverse markets
Opportunities
- Expanding menu with healthier options
- Leveraging technology for ordering and delivery
- Growing presence in emerging markets
- Capitalizing on trends in sustainable packaging
- Enhancing customer experience through digital platforms
Threats
- Intense competition from other fast-food chains
- Rising labor costs and regulatory pressures
- Shifting consumer preferences towards healthier alternatives
- Economic downturns impacting consumer spending
- Supply chain disruptions and commodity price volatility
Competitors and Market Share
Key Competitors
- YUM
- QSR
- WEN
Competitive Landscape
McDonald's maintains its leadership position through its global scale, brand recognition, and real estate portfolio. However, competitors are challenging McDonald's with innovative menu items, digital strategies, and targeted marketing campaigns.
Major Acquisitions
Apprente
- Year: 2019
- Acquisition Price (USD millions): 0
- Strategic Rationale: Acquired to enhance voice-based ordering technology and improve drive-thru efficiency.
Growth Trajectory and Initiatives
Historical Growth: McDonald's has experienced consistent growth over the past several decades, driven by expansion into new markets and innovation in menu offerings. However, growth has slowed in recent years due to market saturation and increased competition.
Future Projections: Analyst estimates project continued growth for McDonald's, driven by international expansion, digital initiatives, and menu innovation. Growth rates are expected to be moderate compared to historical levels.
Recent Initiatives: Recent strategic initiatives include investments in technology for ordering and delivery, menu diversification, and sustainability initiatives.
Summary
McDonald's is a strong global brand with a well-established franchising system and significant real estate holdings. The company is adapting to changing consumer preferences and leveraging technology to enhance customer experience. It faces challenges from increasing competition and health concerns but is positioned to continue its growth trajectory through international expansion and menu innovation.
Similar Companies
- YUM
- QSR
- WEN
- KO
- PEP
Sources and Disclaimers
Data Sources:
- McDonald's Corporation Investor Relations, SEC Filings, Market Research Reports, Industry Analysis
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market data and analyst projections are subject to change and may not be accurate. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About McDonald’s Corporation
Exchange NYSE | Headquaters Chicago, IL, United States | ||
IPO Launch date 1965-04-21 | Chairman President, & CEO Mr. Christopher J. Kempczinski | ||
Sector Consumer Cyclical | Industry Restaurants | Full time employees 150000 | Website https://www.mcdonalds.com |
Full time employees 150000 | Website https://www.mcdonalds.com | ||
McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.
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