McDonalds Corp Revenue vs. Profit Margin

MCD
 Stock
  

USD 275.00  1.73  0.63%   

For McDonalds Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of McDonalds Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well McDonalds Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between McDonalds Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of McDonalds Corp over time as well as its relative position and ranking within its peers. Additionally, see Correlation Analysis.
  
As of November 27, 2022, Price to Sales Ratio is expected to decline to 7.64. In addition to that, Return on Sales is expected to decline to 0.44. McDonalds Corp Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 37,726.

McDonalds Corp Revenues

26.29 Billion

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
Return On Equity
-100 K
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.

McDonalds Corp Profit Margin vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining McDonalds Corp's current stock value. Our valuation model uses many indicators to compare McDonalds Corp value to that of its competitors to determine the firm's financial worth.
McDonalds Corp is rated top company in revenue category among related companies. It is considered to be number one stock in profit margin category among related companies . The ratio of Revenue to Profit Margin for McDonalds Corp is about  915,420,928 . McDonalds Corp Revenues is projected to decrease significantly based on the last few years of reporting. The past year's Revenues was at 23.22 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value McDonalds Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for McDonalds Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the McDonalds Corp's earnings, one of the primary drivers of an investment's value.

McDonalds Revenue vs. Competition

McDonalds Corp is rated top company in revenue category among related companies. Market size based on revenue of Restaurants industry is now estimated at about 46.54 Billion. McDonalds Corp totals roughly 23.27 Billion in revenue claiming about 50% of equities listed under Restaurants industry.

McDonalds Profit Margin vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
McDonalds Corp 
Revenue 
 = 
Money Received 
Discounts and Returns 
23.27 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
McDonalds Corp 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
25.42 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

McDonalds Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in McDonalds Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, McDonalds Corp will eventually generate negative long term returns. The profitability progress is the general direction of McDonalds Corp's change in net profit over the period of time. It can combine multiple indicators of McDonalds Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-2.6 B-2.8 B
Consolidated Income7.5 B7.1 B
Net Income7.5 B6.2 B
Net Income Common Stock7.5 B7.1 B
Operating Income10.1 B8.8 B
Income Tax Expense1.6 B1.8 B
Net Income Per Employee37.7 K40.7 K

McDonalds Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on McDonalds Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of McDonalds Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the McDonalds Corp's important profitability drivers and their relationship over time.

Use McDonalds Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if McDonalds Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in McDonalds Corp will appreciate offsetting losses from the drop in the long position's value.

McDonalds Corp Pair Trading

McDonalds Corp Pair Trading Analysis

The ability to find closely correlated positions to McDonalds Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace McDonalds Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back McDonalds Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling McDonalds Corp to buy it.
The correlation of McDonalds Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as McDonalds Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if McDonalds Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for McDonalds Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your McDonalds Corp position

In addition to having McDonalds Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Music and Video
Music and Video Theme
Companies specializing in music, video and movie production and distribution. The Music and Video theme has 1 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Music and Video Theme or any other thematic opportunities.
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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.

Complementary Tools for McDonalds Stock analysis

When running McDonalds Corp price analysis, check to measure McDonalds Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds Corp is operating at the current time. Most of McDonalds Corp's value examination focuses on studying past and present price action to predict the probability of McDonalds Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds Corp's price. Additionally, you may evaluate how the addition of McDonalds Corp to your portfolios can decrease your overall portfolio volatility.
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To fully project McDonalds Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of McDonalds Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include McDonalds Corp's income statement, its balance sheet, and the statement of cash flows.
Potential McDonalds Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although McDonalds Corp investors may work on each financial statement separately, they are all related. The changes in McDonalds Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on McDonalds Corp'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.