Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Beginner level

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Historical Valuation Ratios (Summary)

McDonald’s Corp., historical price multiples (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Price to earnings (P/E) 32.26 31.84 23.20 25.99 24.21 27.57 25.73 23.66 25.89 22.11 24.17 24.95 23.56 24.71 24.61 22.55 19.62 21.33 23.67 23.56
Price to operating profit (P/OP) 21.26 20.65 15.53 17.27 16.19 18.51 17.23 15.89 15.03 12.52 13.39 13.56 14.29 14.88 14.70 13.65 12.04 13.37 15.20 14.94
Price to sales (P/S) 8.26 7.89 6.46 7.43 6.80 7.81 7.25 6.67 6.36 5.59 5.81 5.68 5.70 5.19 4.82 4.29 3.70 4.02 4.52 4.20
Price to book value (P/BV) 157.74 29.67 15.06 12.42 8.90 8.13

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. McDonald’s Corp.’s P/E ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. McDonald’s Corp.’s P/OP ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. McDonald’s Corp.’s P/S ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return.

Price to Earnings (P/E)

McDonald’s Corp., historical P/E calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377 765,317,332 770,910,250 775,800,409 785,177,398 794,497,880 797,185,588 809,996,613 815,070,168 818,993,182 830,443,627 853,361,988 877,857,531 901,607,888 918,229,823 941,810,237 958,514,890
Selected Financial Data (US$)
Net income (in thousands) 1,762,600  483,800  1,106,900  1,572,200  1,607,900  1,516,900  1,328,400  1,415,300  1,637,300  1,496,300  1,375,400  698,700  1,883,700  1,395,100  1,214,800  1,193,400  1,275,400  1,092,900  1,124,800  1,206,200  1,309,200  1,202,400  811,500 
Earnings per share (EPS)2 6.61 6.41 7.81 8.08 7.79 7.77 7.70 7.74 6.76 7.03 6.82 6.54 7.13 6.27 5.86 5.72 5.66 5.55 5.52 5.02 0.00 0.00 0.00
Share price1, 3 213.22 204.12 181.12 210.10 188.66 214.08 198.03 183.17 174.88 155.41 164.77 163.06 168.10 154.92 144.24 129.05 111.04 118.30 130.58 118.37 112.40 99.80 96.78
Valuation Ratio
P/E ratio4 32.26 31.84 23.20 25.99 24.21 27.57 25.73 23.66 25.89 22.11 24.17 24.95 23.56 24.71 24.61 22.55 19.62 21.33 23.67 23.56
Benchmarks
P/E Ratio, Competitors5
Booking Holdings Inc. 51.91 28.20 17.38 14.16 17.84 18.63 18.08 21.46 31.00 33.54 42.21 39.30 22.48 42.67 42.38 37.59 37.17 25.31 23.99 24.03
Starbucks Corp. 65.20 27.12 27.92 27.63 32.57 31.03 27.53 18.71 15.53 18.27 18.22 28.08 27.28 29.60 27.93 28.81 31.78 33.26 35.19 32.88

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q3 2020 Calculation
EPS = (Net incomeQ3 2020 + Net incomeQ2 2020 + Net incomeQ1 2020 + Net incomeQ4 2019) ÷ No. shares of common stock outstanding
= (1,762,600,000 + 483,800,000 + 1,106,900,000 + 1,572,200,000) ÷ 745,110,988 = 6.61

3 Closing price as at the filing date of McDonald’s Corp.’s Quarterly or Annual Report.

4 Q3 2020 Calculation
P/E ratio = Share price ÷ EPS
= 213.22 ÷ 6.61 = 32.26

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. McDonald’s Corp.’s P/E ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Price to Operating Profit (P/OP)

McDonald’s Corp., historical P/OP calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377 765,317,332 770,910,250 775,800,409 785,177,398 794,497,880 797,185,588 809,996,613 815,070,168 818,993,182 830,443,627 853,361,988 877,857,531 901,607,888 918,229,823 941,810,237 958,514,890
Selected Financial Data (US$)
Operating income (in thousands) 2,526,400  961,100  1,693,600  2,292,600  2,409,300  2,273,900  2,094,000  1,999,500  2,417,700  2,262,300  2,143,100  2,144,200  3,079,400  2,295,100  2,034,000  1,969,000  2,137,300  1,857,900  1,780,300  1,880,400  2,030,300  1,849,300  1,385,500 
Operating profit per share2 10.03 9.89 11.66 12.17 11.65 11.57 11.49 11.53 11.63 12.41 12.31 12.02 11.76 10.41 9.81 9.46 9.22 8.85 8.59 7.93 0.00 0.00 0.00
Share price1, 3 213.22 204.12 181.12 210.10 188.66 214.08 198.03 183.17 174.88 155.41 164.77 163.06 168.10 154.92 144.24 129.05 111.04 118.30 130.58 118.37 112.40 99.80 96.78
Valuation Ratio
P/OP ratio4 21.26 20.65 15.53 17.27 16.19 18.51 17.23 15.89 15.03 12.52 13.39 13.56 14.29 14.88 14.70 13.65 12.04 13.37 15.20 14.94
Benchmarks
P/OP Ratio, Competitors5
Booking Holdings Inc. 104.35 26.09 13.19 12.89 14.57 14.91 14.55 16.06 16.72 18.30 22.33 20.27 18.49 32.71 32.25 27.61 26.33 19.60 18.43 18.81
Starbucks Corp. 41.82 23.50 24.29 24.39 29.28 24.32 22.04 21.78 17.90 20.28 19.39 19.59 18.21 20.29 18.95 19.46 21.68 22.08 23.14 25.18

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q3 2020 Calculation
Operating profit per share = (Operating incomeQ3 2020 + Operating incomeQ2 2020 + Operating incomeQ1 2020 + Operating incomeQ4 2019) ÷ No. shares of common stock outstanding
= (2,526,400,000 + 961,100,000 + 1,693,600,000 + 2,292,600,000) ÷ 745,110,988 = 10.03

3 Closing price as at the filing date of McDonald’s Corp.’s Quarterly or Annual Report.

4 Q3 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 213.22 ÷ 10.03 = 21.26

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. McDonald’s Corp.’s P/OP ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Price to Sales (P/S)

McDonald’s Corp., historical P/S calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377 765,317,332 770,910,250 775,800,409 785,177,398 794,497,880 797,185,588 809,996,613 815,070,168 818,993,182 830,443,627 853,361,988 877,857,531 901,607,888 918,229,823 941,810,237 958,514,890
Selected Financial Data (US$)
Revenues (in thousands) 5,418,100  3,761,500  4,714,400  5,349,000  5,430,600  5,341,300  4,955,600  5,163,000  5,369,400  5,353,900  5,138,900  5,340,200  5,754,600  6,049,700  5,675,900  6,028,900  6,424,100  6,265,000  5,903,900  6,341,300  6,615,100  6,497,700  5,958,900 
Sales per share2 25.83 25.88 28.02 28.27 27.74 27.43 27.30 27.47 27.50 27.83 28.38 28.72 29.49 29.85 29.93 30.06 30.03 29.44 28.89 28.19 0.00 0.00 0.00
Share price1, 3 213.22 204.12 181.12 210.10 188.66 214.08 198.03 183.17 174.88 155.41 164.77 163.06 168.10 154.92 144.24 129.05 111.04 118.30 130.58 118.37 112.40 99.80 96.78
Valuation Ratio
P/S ratio4 8.26 7.89 6.46 7.43 6.80 7.81 7.25 6.67 6.36 5.59 5.81 5.68 5.70 5.19 4.82 4.29 3.70 4.02 4.52 4.20
Benchmarks
P/S Ratio, Competitors5
Booking Holdings Inc. 8.14 6.35 4.07 4.57 5.18 5.25 5.21 5.91 6.14 6.73 7.98 7.25 6.56 8.75 8.53 7.47 7.03 6.85 6.53 6.65
Starbucks Corp. 3.63 3.45 3.86 3.75 4.44 3.68 3.30 3.42 2.93 3.42 3.51 3.62 3.53 3.99 3.71 3.81 4.13 4.19 4.39 4.73

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q3 2020 Calculation
Sales per share = (RevenuesQ3 2020 + RevenuesQ2 2020 + RevenuesQ1 2020 + RevenuesQ4 2019) ÷ No. shares of common stock outstanding
= (5,418,100,000 + 3,761,500,000 + 4,714,400,000 + 5,349,000,000) ÷ 745,110,988 = 25.83

3 Closing price as at the filing date of McDonald’s Corp.’s Quarterly or Annual Report.

4 Q3 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 213.22 ÷ 25.83 = 8.26

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. McDonald’s Corp.’s P/S ratio increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Price to Book Value (P/BV)

McDonald’s Corp., historical P/BV calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377 765,317,332 770,910,250 775,800,409 785,177,398 794,497,880 797,185,588 809,996,613 815,070,168 818,993,182 830,443,627 853,361,988 877,857,531 901,607,888 918,229,823 941,810,237 958,514,890
Selected Financial Data (US$)
Shareholders’ equity (deficit) (in thousands) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900) (6,258,400) (6,792,600) (5,851,000) (4,718,800) (3,268,000) (3,477,600) (2,000,600) (2,030,800) (2,204,300) (1,624,100) 640,000  3,863,000  7,087,900  8,309,800  10,560,900  11,403,300 
Book value per share (BVPS)2 -11.37 -12.72 -12.50 -11.01 -11.42 -8.97 -8.58 -8.18 -8.81 -7.54 -6.01 -4.11 -4.36 -2.47 -2.49 -2.69 -1.96 0.75 4.40 7.86 9.05 11.21 11.90
Share price1, 3 213.22 204.12 181.12 210.10 188.66 214.08 198.03 183.17 174.88 155.41 164.77 163.06 168.10 154.92 144.24 129.05 111.04 118.30 130.58 118.37 112.40 99.80 96.78
Valuation Ratio
P/BV ratio4 157.74 29.67 15.06 12.42 8.90 8.13
Benchmarks
P/BV Ratio, Competitors5
Booking Holdings Inc. 14.74 17.94 15.43 11.61 13.01 14.59 10.87 9.77 8.71 8.80 9.89 8.17 6.23 8.67 8.69 8.17 7.45 7.25 6.87 6.97 7.66 8.01 7.29
Starbucks Corp. 72.30 17.71 17.03 13.88 14.86 13.52 15.63 13.88 13.79 14.83 16.60 14.48 15.59 14.48 12.64 11.47

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q3 2020 Calculation
BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -8,472,100,000 ÷ 745,110,988 = -11.37

3 Closing price as at the filing date of McDonald’s Corp.’s Quarterly or Annual Report.

4 Q3 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 213.22 ÷ -11.37 =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return.