Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

McDonald’s Corp., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Add: Income tax expense 2,053,400 1,648,000 1,582,700 1,410,200 1,992,700
Earnings before tax (EBT) 10,522,200 7,825,400 9,127,900 6,140,700 8,018,100
Add: Interest expense, net of capitalized interest 1,360,800 1,207,000 1,185,800 1,218,100 1,121,900
Earnings before interest and tax (EBIT) 11,883,000 9,032,400 10,313,700 7,358,800 9,140,000
Add: Depreciation and amortization 1,978,200 1,870,600 1,868,100 1,751,400 1,617,900
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,861,200 10,903,000 12,181,800 9,110,200 10,757,900

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. McDonald’s Corp. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Enterprise Value to EBITDA Ratio, Current

McDonald’s Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 248,532,593
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,861,200
Valuation Ratio
EV/EBITDA 17.93
Benchmarks
EV/EBITDA, Competitors1
Airbnb Inc. 35.86
Booking Holdings Inc. 25.68
Chipotle Mexican Grill Inc.
Starbucks Corp. 17.35
EV/EBITDA, Sector
Consumer Services 19.40
EV/EBITDA, Industry
Consumer Discretionary 24.67

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

McDonald’s Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 250,010,976 227,522,516 213,114,063 191,545,606 189,897,042
Earnings before interest, tax, depreciation and amortization (EBITDA)2 13,861,200 10,903,000 12,181,800 9,110,200 10,757,900
Valuation Ratio
EV/EBITDA3 18.04 20.87 17.49 21.03 17.65
Benchmarks
EV/EBITDA, Competitors4
Airbnb Inc. 40.65 36.61 338.63
Booking Holdings Inc. 19.60 19.20 45.39 73.17 10.49
Chipotle Mexican Grill Inc. 36.37 29.62 40.00 79.87 34.03
Starbucks Corp. 17.75 19.88 18.77 38.99 17.27
EV/EBITDA, Sector
Consumer Services 20.97 22.11 25.46 59.23 16.04
EV/EBITDA, Industry
Consumer Discretionary 17.94 19.55 21.16 29.01 17.75

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 250,010,976 ÷ 13,861,200 = 18.04

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. McDonald’s Corp. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.