MCD operates a proven business model with a well diversifed global structure. The company is a strong established Dividend Champion and raised dividends over a period of 36 consecutive years with a double-digit long-term growth rate. Morningstar estimates the fair value of the company at $94.0, an upside potential of 7.64% compared to the previous close price of $87.33.
We like the strong brand and consumer focus of McDonald's. The huge cash flow of $7.1 billion allows the company to pay $2.6 billion dividends and to repurchase $3.0 billion own shares as of fiscal year 2011. Roughly $2.7 billion were used for CAPEX.
Here is a short biography of the stock:
McDonald's (NYSE:MCD) has a market capitalization of $87.44 billion. The company employs 420,000 people, generates revenue of $27,006.00 million and has a net income of $5,503.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,766.70 million. The EBITDA margin is 36.16 percent (operating margin 31.58 percent and net profit margin 20.38 percent).
Financial Analysis: The total debt represents 37.89 percent of the company’s assets and the total debt in relation to the equity amounts to 86.87 percent. Due to the financial situation, a return on equity of 37.92 percent was realized. Twelve trailing months earnings per share reached a value of $5.31. Last fiscal year, the company paid $2.53 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.33, P/S ratio 3.26 and P/B ratio 6.20. Dividend Yield: 3.53 percent. The beta ratio is 0.41.
|Long-Term Stock History Chart Of McDonald's (Click to enlarge)|
|Long-Term Dividends History of McDonald's (MCD) (Click to enlarge)|
|Long-Term Dividend Yield History of McDonald's (NYSE: MCD) (Click to enlarge)|
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