Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Microsoft Excel

Historical Valuation Ratios (Summary)

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

Microsoft Excel
Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Price to earnings (P/E) 25.23 23.23 26.39 31.34 31.22 34.24 31.53 25.65 24.15 25.57 25.43 33.98 33.31 32.26 31.84 23.20 25.99
Price to operating profit (P/OP) 18.35 16.94 19.22 22.47 20.58 22.04 20.38 17.56 17.59 18.44 18.19 22.17 21.51 21.26 20.65 15.53 17.27
Price to sales (P/S) 8.38 7.74 8.72 9.20 8.32 8.70 8.13 7.68 7.85 8.27 8.07 8.94 8.20 8.26 7.89 6.46 7.43
Price to book value (P/BV)

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

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. P/E ratio decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 not reaching Q2 2023 level.
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. P/OP ratio decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 not reaching Q2 2023 level.
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. P/S ratio decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 not reaching Q2 2023 level.

Price to Earnings (P/E)

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

Microsoft Excel
Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 722,051,488 725,342,030 728,763,452 730,093,896 731,496,951 732,423,892 735,717,271 739,546,930 743,584,718 747,245,427 746,798,875 746,174,284 745,572,145 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377
Selected Financial Data (US$)
Net income (in thousands) 2,039,000 2,317,100 2,310,400 1,802,300 1,903,400 1,981,600 1,188,000 1,104,400 1,638,800 2,149,900 2,219,300 1,537,200 1,377,200 1,762,600 483,800 1,106,900 1,572,200 1,607,900 1,516,900 1,328,400
Earnings per share (EPS)2 11.73 11.49 10.97 9.42 8.44 8.07 8.27 9.62 10.15 9.75 9.23 6.92 6.34 6.61 6.41 7.81 8.08 0.00 0.00 0.00
Share price1, 3 295.92 266.85 289.62 295.16 263.68 276.41 260.64 246.64 245.03 249.24 234.83 235.04 211.32 213.22 204.12 181.12 210.10 188.66 214.08 198.03
Valuation Ratio
P/E ratio4 25.23 23.23 26.39 31.34 31.22 34.24 31.53 25.65 24.15 25.57 25.43 33.98 33.31 32.26 31.84 23.20 25.99
Benchmarks
P/E Ratio, Competitors5
Airbnb Inc. 20.59 14.19 39.65 40.05 44.53 36.29 59.77 96.17
Booking Holdings Inc. 31.09 18.68 22.74 23.90 29.87 28.26 50.57 164.32 86.68 261.79 206.85 136.53 1,696.44 51.91 28.20 17.38 14.16
Carnival Corp. & plc 3.22 11.04 10.23 11.03 12.02
Chipotle Mexican Grill Inc. 58.48 44.26 47.35 54.41 49.37 50.59 55.45 61.34 67.03 69.94 87.74 102.78 122.20 147.85 126.19 72.72 67.72
Starbucks Corp. 29.09 30.66 36.91 37.77 34.26 23.05 19.34 25.86 30.95 52.55 137.44 185.40 118.26 65.20 27.12 27.92 27.63 32.57 31.03 27.53

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2023 Calculation
EPS = (Net incomeQ4 2023 + Net incomeQ3 2023 + Net incomeQ2 2023 + Net incomeQ1 2023) ÷ No. shares of common stock outstanding
= (2,039,000,000 + 2,317,100,000 + 2,310,400,000 + 1,802,300,000) ÷ 722,051,488 = 11.73

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

4 Q4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 295.92 ÷ 11.73 = 25.23

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. P/E ratio decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 not reaching Q2 2023 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 722,051,488 725,342,030 728,763,452 730,093,896 731,496,951 732,423,892 735,717,271 739,546,930 743,584,718 747,245,427 746,798,875 746,174,284 745,572,145 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377
Selected Financial Data (US$)
Operating income (in thousands) 2,801,900 3,208,300 3,104,100 2,532,400 2,582,700 2,763,900 1,711,800 2,312,600 2,397,100 2,986,500 2,691,100 2,281,300 2,142,900 2,526,400 961,100 1,693,600 2,292,600 2,409,300 2,273,900 2,094,000
Operating profit per share2 16.13 15.75 15.07 13.14 12.81 12.54 12.79 14.05 13.93 13.52 12.91 10.60 9.82 10.03 9.89 11.66 12.17 0.00 0.00 0.00
Share price1, 3 295.92 266.85 289.62 295.16 263.68 276.41 260.64 246.64 245.03 249.24 234.83 235.04 211.32 213.22 204.12 181.12 210.10 188.66 214.08 198.03
Valuation Ratio
P/OP ratio4 18.35 16.94 19.22 22.47 20.58 22.04 20.38 17.56 17.59 18.44 18.19 22.17 21.51 21.26 20.65 15.53 17.27
Benchmarks
P/OP Ratio, Competitors5
Airbnb Inc. 65.01 34.45 46.61 45.09 46.78 35.98 57.78 88.47 232.24
Booking Holdings Inc. 22.85 15.07 16.75 17.88 17.91 14.98 19.34 28.66 40.46 66.89 104.35 26.09 13.19 12.89
Carnival Corp. & plc 10.57 41.11 2.77 10.08 9.36 10.15 11.30
Chipotle Mexican Grill Inc. 46.13 34.75 36.84 41.99 38.25 40.02 45.28 50.34 54.38 65.08 81.53 109.80 149.82 129.22 115.19 60.78 53.42
Starbucks Corp. 20.44 21.64 25.87 26.73 24.35 19.58 16.72 22.12 26.68 37.64 77.96 98.18 70.29 41.82 23.50 24.29 24.39 29.28 24.32 22.04

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2023 Calculation
Operating profit per share = (Operating incomeQ4 2023 + Operating incomeQ3 2023 + Operating incomeQ2 2023 + Operating incomeQ1 2023) ÷ No. shares of common stock outstanding
= (2,801,900,000 + 3,208,300,000 + 3,104,100,000 + 2,532,400,000) ÷ 722,051,488 = 16.13

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

4 Q4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 295.92 ÷ 16.13 = 18.35

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. P/OP ratio decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 not reaching Q2 2023 level.

Price to Sales (P/S)

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

Microsoft Excel
Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 722,051,488 725,342,030 728,763,452 730,093,896 731,496,951 732,423,892 735,717,271 739,546,930 743,584,718 747,245,427 746,798,875 746,174,284 745,572,145 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377
Selected Financial Data (US$)
Revenues (in thousands) 6,406,200 6,692,200 6,497,500 5,897,800 5,926,500 5,872,100 5,718,400 5,665,600 6,009,100 6,201,300 5,887,900 5,124,600 5,313,800 5,418,100 3,761,500 4,714,400 5,349,000 5,430,600 5,341,300 4,955,600
Sales per share2 35.31 34.49 33.20 32.07 31.69 31.76 32.07 32.13 31.23 30.15 29.12 26.29 25.76 25.83 25.88 28.02 28.27 0.00 0.00 0.00
Share price1, 3 295.92 266.85 289.62 295.16 263.68 276.41 260.64 246.64 245.03 249.24 234.83 235.04 211.32 213.22 204.12 181.12 210.10 188.66 214.08 198.03
Valuation Ratio
P/S ratio4 8.38 7.74 8.72 9.20 8.32 8.70 8.13 7.68 7.85 8.27 8.07 8.94 8.20 8.26 7.89 6.46 7.43
Benchmarks
P/S Ratio, Competitors5
Airbnb Inc. 9.95 8.07 10.03 9.33 10.04 7.36 10.11 11.65 16.64
Booking Holdings Inc. 6.24 4.80 5.24 5.29 5.35 4.30 5.33 6.83 9.22 10.85 11.93 16.99 14.73 8.14 6.35 4.07 4.57
Carnival Corp. & plc 0.96 0.89 1.29 0.86 1.18 0.95 1.79 6.51 11.73 44.38 213.24 40.35 3.74 1.36 0.75 0.29 1.59 1.53 1.66 1.93
Chipotle Mexican Grill Inc. 7.28 5.43 5.68 6.25 5.14 4.86 5.15 5.36 5.80 6.91 7.52 6.62 7.26 6.03 5.74 4.33 4.24
Starbucks Corp. 3.34 3.31 3.86 3.81 3.49 3.00 2.72 3.74 4.47 5.48 5.74 5.32 4.67 3.63 3.45 3.86 3.75 4.44 3.68 3.30

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2023 Calculation
Sales per share = (RevenuesQ4 2023 + RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023) ÷ No. shares of common stock outstanding
= (6,406,200,000 + 6,692,200,000 + 6,497,500,000 + 5,897,800,000) ÷ 722,051,488 = 35.31

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

4 Q4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 295.92 ÷ 35.31 = 8.38

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. P/S ratio decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 not reaching Q2 2023 level.

Price to Book Value (P/BV)

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

Microsoft Excel
Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 722,051,488 725,342,030 728,763,452 730,093,896 731,496,951 732,423,892 735,717,271 739,546,930 743,584,718 747,245,427 746,798,875 746,174,284 745,572,145 745,110,988 744,102,514 743,556,182 745,446,655 753,093,326 759,444,174 763,556,377
Selected Financial Data (US$)
Shareholders’ equity (deficit) (in thousands) (4,706,700) (4,854,800) (4,999,100) (5,776,100) (6,003,400) (6,566,200) (6,369,800) (5,990,800) (4,601,000) (5,675,000) (5,808,000) (7,235,500) (7,824,900) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900)
Book value per share (BVPS)2 -6.52 -6.69 -6.86 -7.91 -8.21 -8.97 -8.66 -8.10 -6.19 -7.59 -7.78 -9.70 -10.50 -11.37 -12.72 -12.50 -11.01 -11.42 -8.97 -8.58
Share price1, 3 295.92 266.85 289.62 295.16 263.68 276.41 260.64 246.64 245.03 249.24 234.83 235.04 211.32 213.22 204.12 181.12 210.10 188.66 214.08 198.03
Valuation Ratio
P/BV ratio4
Benchmarks
P/BV Ratio, Competitors5
Airbnb Inc. 12.09 8.49 18.03 15.36 15.16 10.67 14.23 16.27 20.88 28.80 28.30 27.60
Booking Holdings Inc. 89.53 32.84 18.79 19.51 19.54 16.35 18.03 17.84 20.15 20.46 14.74 17.94 15.43 11.61 13.01 14.59 10.87
Carnival Corp. & plc 3.00 2.57 3.85 2.09 2.03 1.09 1.27 2.21 1.84 1.96 1.69 1.69 1.02 0.72 0.61 0.25 1.30 1.24 1.37 1.54
Chipotle Mexican Grill Inc. 23.47 17.95 19.07 22.64 18.74 17.58 19.46 19.67 19.05 21.50 23.66 19.92 21.52 19.43 18.92 14.72 14.09 13.50 14.02 12.66
Starbucks Corp.

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q4 2023 Calculation
BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -4,706,700,000 ÷ 722,051,488 = -6.52

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

4 Q4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 295.92 ÷ -6.52 =

5 Click competitor name to see calculations.