McDonald's (McDonald's) Risk Assessment

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What is McDonald's Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of McDonald's is: Low Risk: Strong fundamentals, worth long-term holding.

Competitive Comparison of McDonald's's Risk Assessment

For the Restaurants subindustry, McDonald's's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

McDonald's's Risk Assessment Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, McDonald's's Risk Assessment distribution charts can be found below:

* The bar in red indicates where McDonald's's Risk Assessment falls into.

McDonald's (NYSE:MCD) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

McDonald's Risk Assessment Related Terms

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McDonald's (McDonald's) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » McDonald's Corp (NYSE:MCD) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

MCD:Mexico 1MCD:Italy MDOd:UK 0R16:UK MDO0:Germany MDO:Germany MDO:Germany MDO:Germany MDO:Germany MCDS:Canada MCDC34:Brazil MCD:Austria MCD:Argentina

Address

110 North Carpenter Street, Chicago, IL, USA, 60607

Website

https://www.investor.mcdonalds.com

McDonald's is the largest restaurant owner-operator in the world, with 2022 system sales of $116 billion across more than 40,000 stores and 115 markets. McDonald's pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.

Executives

Heidi B Capozzi	officer: EVP - Chief People Officer	C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Joseph M. Erlinger	officer: President, McDonald's USA	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Marion K. Gross	officer: EVP-Chief Supply Chain Officer	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Christopher J Kempczinski	director, officer: President and CEO	THREE LAKES DRIVE, NORTHFIELD IL 60093
Brian S Rice	officer: EVP-Global Chief Info. Officer	7000 CARDINAL PLACE, DUBLIN OH 43017
Edith Morgan Flatley	officer: EVP - Global CMO	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Ian Frederick Borden	officer: EVP & CFO	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Enrique Jr Hernandez	director, other: Non-Exec Chairman of the Board	INTER-CON SECURITY SYSTEMS, INC., 210 SOUTH DELACEY AVENUE, PASADENA CA 91105
Desiree Ralls-morrison	officer: EVP, Chief Legal Off. and Sec.	C/O BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752
Manuel Jm Steijaert	officer: EVP - Chief Customer Officer	110 NORTH CARPENTER STREET, CHICAGO IL 60607
Jo Sempels	officer: President, IDL	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Catherine A. Hoovel	officer: SVP - Corporate Controller	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Catherine M. Engelbert	director	110 NORTH CARPENTER STREET, CHICAGO IL 60607
Rogers John W Jr	director	ARIEL CAPITAL MANAGEMENT, INC., 200 EAST RANDOLPH DRIVE, SUITE 2900, CHICAGO IL 60601
Jennifer L Taubert	director	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933