These numbers can be found on the 8-K report the company files with the SEC. For the fourth quarter, global comparable sales increased 2.7%, including positive comparable sales in the International Lead, High Growth, and Foundational segments. Consolidated revenues decreased 5% due to the impact of refranchising. Lastly, consolidated operating income increased 5% and 7% in constant currencies. Overall, the short term fundamentals look well and the company itself is such a well known brand that it will take more than a simple shift to really upset the foundations.
Now, taking a look at the chart using the monthly time frame, we can see that price was sideways for quite awhile, but has not taken off back to the upside, which is a great sign. Despite the slight changes going on, people certainly have faith that the company will continue to perform and keep a hold of their global dominance. The chart looks great, but the chart alone is not enough to determine the direction of the company. Be sure to use all the data point you find together to help formulate the most well rounded opinion.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include McDonalds income statement, its balance sheet, and the statement of cash flows. Potential McDonalds investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although McDonalds investors may use each financial statement separately, they are all related. The changes in McDonalds's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on McDonalds's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of McDonalds
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of McDonalds performance into the future periods or doing a reasonable stock valuation. The intrinsic value of McDonalds shares is the value that is considered the true value of the share. If
the intrinsic value of McDonalds is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares McDonalds. Please read more on our
fundamental analysis page.
How effective is McDonalds in utilizing its assets?
McDonalds reports assets on its Balance Sheet. It represents the amount of McDonalds resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, McDonalds aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Restaurants & Leisure space. To get a better handle on how balance sheet or income statements item affect McDonalds volatility, please check the breakdown of all its
fundamentals.
Are McDonalds Earnings Expected to grow?
The
future earnings power of McDonalds involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of McDonalds factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. McDonalds
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of McDonalds
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of McDonalds earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. McDonalds dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. McDonalds one year expected dividend income is about USD4.11 per share.
The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 4.64, whereas
Dividends Paid is projected to grow to (4.3
B).
Investing in dividend-paying stocks, such as McDonalds is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in McDonalds must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for McDonalds. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
McDonalds Gross Profit
McDonalds Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing McDonalds previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show McDonalds Gross Profit growth over the last 10 years. Please check McDonalds'
gross profit and other
fundamental indicators for more details.
Is McDonalds valued correctly by the market?
Risks
For a full list of risks, head on over to the 10-K report as that will give you the risks and the details associated. For now, here are a couple to keep in mind while you’re completing your research. First, the company has to continue to maintain their brand image, which is doing well know. If that begins to slip, people will go to a competitor no problem. Secondly, the problem with health here in American is a real issue and the company has to find a way to keep people from attaching the company name with negative press.
Conclusion
The conclusion is that McDonalds is certainly here to stay for the near term and it would take a major change to have the company begin to fall. Since there are many different companies in this space, compare them all to see which one is providing the best value. If at the end you still have questions, reach out to an investing professional and they can help direct you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of McDonalds. Please refer to our
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