McDonald’s Corp. (NYSE:MCD)

Price to Earnings (P/E) Ratio

The P/E ratio data begins from March 31, 2020, showing a value of 33.31, which slightly increases to 33.98 by June 30, 2020. Thereafter, it declines noticeably to 25.43 in September 2020 and remains relatively stable around 24 to 26 through the end of 2021. A subsequent increase is observed reaching 34.24 by December 31, 2022. Following this peak, the ratio trends downward again, falling to the low twenties by mid-2024. The final values stabilize slightly higher at approximately 26 to 27 through the first half of 2025. Overall, the P/E ratio displays cyclical fluctuations, with a general mild downward tendency after late 2022.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio starts at 21.51 in March 2020, ascending to 22.17 in June 2020, then declining sharply to 18.19 by September 2020. It remains fairly steady in the range of 17 to 20 throughout 2021 and 2022, with a notable peak of 22.47 in September 2022. From late 2022 through early 2024, the ratio decreases again, hitting lows around 16.33 in June 2024. It slightly recovers toward the end of the period, reaching around 18 to 19 by mid-2025. This ratio therefore exhibits moderate volatility with a tendency to decline after late 2022.

Price to Sales (P/S) Ratio

The P/S ratio registers an initial value of 8.20 at the beginning of the observation period and increases to 8.94 by June 2020. It then decreases somewhat to near 7.7 by mid-2021, followed by a resurgence peaking at 9.20 in September 2022. After this peak, the ratio decreases to about 7.51 by mid-2024 but rebounds again slightly, fluctuating between 8.4 and 8.7 into mid-2025. The data indicate periodic fluctuations with no consistent upward or downward trend, but a notable peak occurred in the latter half of 2022.

Price to Book Value (P/BV) Ratio

No data was available for the P/BV ratio during the observed periods, thus no analysis is possible.

The share price demonstrated an overall upward trend from March 2020 through June 2025, beginning at $181.12 in March 2020 and reaching a peak near $312 in mid-2025. Notwithstanding this general growth, some periods experienced price volatility, including declines observed in the late 2022 and early 2024 quarters. Following those dips, the share price rebounded strongly, indicating resilience and positive market sentiment over the longer term.

Earnings per share (EPS) data, which begins in March 2021, displayed consistent growth initially, from $6.34 to a high of approximately $11.93 in late 2023. After reaching this peak, EPS stabilized somewhat, fluctuating around $11.40 to $11.76 through the most recent quarters. This stabilization suggests maturity in earnings growth despite maintaining strong profitability levels.

The price-to-earnings (P/E) ratio initially decreased from around 33.31 in early 2021 to approximately 24.15 by the end of that year, reflecting a catch-up effect where earnings increased faster than the share price. Subsequently, the P/E ratio rose again, peaking near 34.24 in late 2022, before declining toward the mid-20s range in the following years. This fluctuation indicates shifting market valuation relative to earnings, alternating between periods of perceived overvaluation and more conservative valuing as earnings growth steadied.

Overall, the financial data reflects strong earnings improvement followed by a phase of earnings stability, with the share price generally appreciating but accompanied by some volatility. The P/E ratio movements suggest dynamic market assessments of value, influenced by company performance and broader investor sentiment throughout the analyzed periods.

The data reveals several key trends and fluctuations in the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the examined periods.

Share Price

The share price generally exhibits an upward trajectory from March 2020 through June 2025, starting at $181.12 and reaching a peak above $311 in mid-2025. Despite this overall increase, the share price experiences periods of volatility. Notably, there are dips in late 2020 and again in late 2023, with fluctuations evident in sequential quarters. The increases tend to be followed by temporary corrections, indicating a dynamic market response possibly influenced by broader economic conditions or company-specific events.

Operating Profit per Share

Operating profit per share data begins from March 2021 and shows a consistent upward trend throughout the periods. Starting at $9.82, it increases steadily, reaching $16.73 by June 2025. This growth marks a significant enhancement in profitability per share, suggesting improving operational efficiency or higher income generation capacity. The increments are relatively stable, with no sharp declines, indicating a positive trend in the company’s operational performance.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio demonstrates volatility but tends to fluctuate within a mid-to-high range, roughly between 16 and 22 over the periods. Early in the series, the ratio peaks around 22.47, reflecting possibly high market expectations or subdued operational profits relative to price. Later, a decrease to values near 16 is seen, coinciding with periods of increased operating profit per share, implying a potential revaluation or improved profit performance relative to stock price. The ratio does not show a clear long-term decreasing or increasing trend but maintains moderate oscillations possibly reflecting changing investor sentiment or market dynamics.

Overall, the company’s financial indicators display a robust improvement in operating profit per share, which aligns with a generally positive movement in share price. The P/OP ratio's fluctuations might indicate market adjustments responding to profitability changes and valuation considerations. The data suggests sustained operational growth accompanied by a carefully balanced market valuation over the observed timeframe.

Share Price Trend

The share price generally exhibited an upward trend from March 2020 to June 2025, rising from approximately 181.12 US$ to a peak near 311.92 US$ in June 2025. Some fluctuations were observed, notably a decline between December 2022 and September 2023, where the price dropped from 263.68 US$ to 266.85 US$, before recovering again towards mid-2024.

Sales Per Share Development

Sales per share values are available starting from March 31, 2021. From this date onward, a steady increase in sales per share is evident, increasing from 25.76 US$ to a peak level of 36.52 US$ by June 2025. This demonstrates consistent growth in sales generation on a per-share basis without significant downward adjustments in any quarter.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio showed variability across the quarters. Initially recorded at 8.2 in March 2021, it experienced moderate fluctuation ranging mostly between 7.5 and 9.2 over the observed period. The ratio peaked at 9.2 in June 2023, indicating that share prices were higher relative to sales at that time. A lower P/S ratio around 7.5 occurred in mid-2024, suggesting more favorable pricing relative to sales. Towards the end of the series, the ratio stabilized near 8.4.

Correlation Insights

There is a general correlation between increasing sales per share and rising share prices, suggesting positive market response to improving sales performance. However, the P/S ratio's fluctuations indicate that market valuation relative to sales changed due to external factors such as investor sentiment, market conditions, or company earnings expectations.

Share Price Trends

The share price exhibited a generally upward trend over the observed period. Beginning at $181.12 in March 2020, it showed steady increases punctuated by occasional fluctuations. The price reached a peak exceeding $310 in early 2025, reflecting a strong recovery and growth from the initial value. Notably, the share price increased significantly between mid-2021 and early 2022, with some volatility observed in late 2022 and 2023, before continuing its upward trajectory into 2025.

Book Value Per Share (BVPS) Trends

The BVPS started from a negative value of -$12.5 in March 2020 and showed gradual improvement over the years, becoming less negative. This reduction in negative book value suggests a strengthening of the company's equity position. Although there were some minor fluctuations and occasional reversals in the trend, the overall direction was toward less negative values, reaching approximately -$3.87 by mid-2025.

Price-to-Book Value (P/BV) Ratio

The dataset lacks explicit values for the P/BV ratio; however, given the trends in share price and book value per share, the P/BV ratio can be inferred to be elevated due to the negative BVPS combined with rising share prices. This implies that the market valuation is significantly higher relative to the book value, reflecting investor confidence or expectations of future profitability despite negative book equity figures.

Overall Analysis

The financial data portrays a company with increasing market valuation as evidenced by the rising share price. Concurrently, improvements in the book value per share, although still negative, indicate progress in underlying net asset value. The combination suggests that market participants value future earnings and growth prospects highly, outweighing the negative book equity. The absence of P/BV ratio data prevents precise calculations, but implied elevated ratios point toward a premium valuation. Monitoring the continued improvement in book value alongside share price movements will be critical to assess sustainable financial health.