Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

McDonald’s Corp., FCFE 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
Net noncash charges 1,251,100 1,853,900 1,142,100 1,746,800 1,798,200
Changes in working capital items (108,000) (644,600) 454,200 (212,100) 298,500
Cash provided by operations 9,611,900 7,386,700 9,141,500 6,265,200 8,122,100
Capital expenditures (2,357,400) (1,899,200) (2,040,000) (1,640,800) (2,393,700)
Net short-term borrowings 212,800 25,500 15,100 (893,100) 799,200
Long-term financing issuances 5,221,100 3,374,500 1,154,400 5,543,000 4,499,000
Long-term financing repayments (2,441,100) (2,202,400) (2,240,000) (2,411,700) (2,061,900)
Free cash flow to equity (FCFE) 10,247,300 6,685,100 6,031,000 6,862,600 8,964,700

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
FCFE Free cash flow to equity is the cash flow available to McDonald’s Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. McDonald’s Corp. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

McDonald’s Corp., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 716,619,686
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 10,247,300
FCFE per share 14.30
Current share price (P) 296.10
Valuation Ratio
P/FCFE 20.71
Benchmarks
P/FCFE, Competitors1
Airbnb Inc. 22.94
Booking Holdings Inc. 20.87
Chipotle Mexican Grill Inc. 0.07
Starbucks Corp. 32.30
P/FCFE, Sector
Consumer Services 21.17
P/FCFE, Industry
Consumer Discretionary 43.14

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

McDonald’s Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 722,051,488 731,496,951 743,584,718 745,572,145 745,446,655
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 10,247,300 6,685,100 6,031,000 6,862,600 8,964,700
FCFE per share3 14.19 9.14 8.11 9.20 12.03
Share price1, 4 295.92 263.68 245.03 211.32 210.10
Valuation Ratio
P/FCFE5 20.85 28.85 30.21 22.96 17.47
Benchmarks
P/FCFE, Competitors6
Airbnb Inc. 25.72 24.76 54.32 99.90
Booking Holdings Inc. 15.89 11.52 69.03 37.59 15.41
Chipotle Mexican Grill Inc. 58.77 52.59 51.88 149.64 59.04
Starbucks Corp. 29.75 34.82 45.80 20.79 20.35
P/FCFE, Sector
Consumer Services 22.99 23.78 42.78 32.80 18.62
P/FCFE, Industry
Consumer Discretionary 30.84 36.19 82.92 32.04 28.99

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,247,300,000 ÷ 722,051,488 = 14.19

4 Closing price as at the filing date of McDonald’s Corp. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 295.92 ÷ 14.19 = 20.85

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. McDonald’s Corp. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.