| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 208.00 | -21 |
| Intrinsic value (DCF) | 132.81 | -50 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 95.80 | -64 |
McDonald's Corporation (MDO.DE) is the world's leading global foodservice retailer, operating and franchising McDonald's restaurants across the United States and internationally. With a presence in over 100 countries and more than 40,000 locations as of December 2021, McDonald's serves a diverse menu featuring hamburgers, chicken products, breakfast items, beverages, and desserts. The company's business model relies heavily on franchising, with approximately 93% of its restaurants operated by independent franchisees, ensuring scalability and local market adaptation. McDonald's is a dominant player in the fast-food industry, leveraging its strong brand recognition, efficient supply chain, and digital transformation initiatives like mobile ordering and delivery partnerships. Headquartered in Chicago, Illinois, McDonald's continues to innovate with menu diversification, sustainability efforts, and technology-driven customer experiences, reinforcing its position in the Consumer Cyclical sector.
McDonald's presents a compelling investment case due to its resilient business model, strong cash flow generation, and global brand dominance. The company's extensive franchise network provides stable revenue streams with high margins, while its focus on digital innovation and menu expansion supports long-term growth. However, risks include exposure to inflationary pressures, labor costs, and geopolitical uncertainties in international markets. With a market capitalization of approximately €198 billion, a beta of 0.567 indicating lower volatility, and a solid dividend yield, McDonald's remains a defensive play in the Consumer Cyclical sector. Investors should monitor execution risks in digital transformation and competitive pressures from emerging fast-casual chains.
McDonald's maintains a competitive advantage through its unparalleled global scale, brand equity, and franchise-driven operating model. Its supply chain efficiency and standardized processes ensure consistent quality and cost control, while localized menu adaptations cater to regional tastes. The company's investments in digital platforms (e.g., mobile app, kiosks) and delivery partnerships enhance convenience and customer retention. However, McDonald's faces intensifying competition from fast-casual chains offering healthier options (e.g., Chipotle) and tech-savvy rivals leveraging digital engagement. While McDonald's outperforms peers in operating margins (approx. 45%), its growth relies on mature markets, whereas competitors like Yum! Brands benefit from faster expansion in emerging economies. The company's pricing power and marketing prowess solidify its leadership, but evolving consumer preferences toward sustainability and health-conscious dining pose long-term challenges.