McDonalds Stock Performance

MCD
 Stock
  

USD 275.00  1.73  0.63%   

McDonalds Corp has a performance score of 8 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.6221, which conveys possible diversification benefits within a given portfolio. Let's try to break down what McDonalds's beta means in this case. As returns on the market increase, McDonalds Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding McDonalds Corp will be expected to be smaller as well. Although it is important to respect McDonalds Corp price patterns, it is better to be realistic regarding the information on the equity's historical price patterns. The approach to estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing McDonalds Corp technical indicators, you can currently evaluate if the expected return of 0.15% will be sustainable into the future. McDonalds Corp presently secures a risk of 1.3%. Please verify McDonalds Corp coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if McDonalds Corp will be following its current price movements.
  
McDonalds Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in McDonalds Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, McDonalds Corp may actually be approaching a critical reversion point that can send shares even higher in December 2022. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0221
Payout Ratio
0.58
Last Split Factor
2:1
Forward Annual Dividend Rate
6.08
Dividend Date
2022-12-15
Ex Dividend Date
2022-11-30

McDonalds Price Channel

Quick Ratio1.35
Fifty Two Week Low217.68
Target High Price328.00
Fifty Two Week High281.67
Payout Ratio69.61%
Trailing Annual Dividend Yield2.01%
Target Low Price250.00

McDonalds Corp Relative Risk vs. Return Landscape

If you would invest  25,211  in McDonalds Corp on August 30, 2022 and sell it today you would earn a total of  2,289  from holding McDonalds Corp or generate 9.08% return on investment over 90 days. McDonalds Corp is generating 0.1463% of daily returns assuming volatility of 1.3023% on return distribution over 90 days investment horizon. In other words, 11% of stocks are less volatile than McDonalds, and above 98% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon McDonalds Corp is expected to generate 0.94 times more return on investment than the market. However, the company is 1.06 times less risky than the market. It trades about 0.11 of its potential returns per unit of risk. The DOW is currently generating roughly 0.1 per unit of risk.

McDonalds Corp Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for McDonalds Corp's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as McDonalds Corp, and traders can use it to determine the average amount a McDonalds Corp's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1124

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Estimated Market Risk
 1.3
  actual daily
 
 11 %
of total potential
 
1111
Expected Return
 0.15
  actual daily
 
 2 %
of total potential
 
22
Risk-Adjusted Return
 0.11
  actual daily
 
 8 %
of total potential
 
88
Based on monthly moving average McDonalds Corp is performing at about 8% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of McDonalds Corp by adding it to a well-diversified portfolio.

About McDonalds Corp Performance

To evaluate McDonalds Corp Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when McDonalds Corp generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare McDonalds Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand McDonalds Corp market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents McDonalds's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash-120.1 M-129.6 M
Return on Investment 33.26  30.10 
Return on Average Assets 14.17  15.96 
Return on Average Equity 172.74  186.37 
Return on Invested Capital 0.11  0.13 
Return on Sales 0.44  0.44 

Things to note about McDonalds Corp

Checking the ongoing alerts about McDonalds Corp for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for McDonalds Corp help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

McDonalds Corp Alerts

Equity Alerts and Improvement Suggestions

Additionally, see Correlation Analysis. Note that the McDonalds Corp information on this page should be used as a complementary analysis to other McDonalds Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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Is McDonalds Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds Corp. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.06) 
Market Capitalization
201.4 B
Quarterly Revenue Growth YOY
(0.05) 
Return On Assets
0.13
The market value of McDonalds Corp is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds Corp's value that differs from its market value or its book value, called intrinsic value, which is McDonalds Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds Corp's market value can be influenced by many factors that don't directly affect McDonalds Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McDonalds Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine McDonalds Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.