McDonald's(US:MCD) INDUSTRIAL SECURITIES·2024-11-17 03:52Investment Rating - The report maintains an "Overweight" rating for the company [6]. Core Views - The company has seen a positive impact from its $5 meal package, which has increased consumption frequency and order volume among low-income consumers, leading to a return to positive same-store sales growth in the U.S. market [7]. - Despite a negative impact from an E. coli incident in late October, the company has taken proactive measures by suspending cooperation with the contaminated supplier and removing affected products from its offerings [7]. - Revenue projections for 2024, 2025, and 2026 are $25.84 billion, $27.18 billion, and $28.73 billion, reflecting year-on-year growth of 1.4%, 5.2%, and 5.7% respectively [7]. - The net profit for the same years is projected to be $8.36 billion, $8.93 billion, and $9.48 billion, with a slight decline in 2024 followed by growth in subsequent years [7]. - The current stock price corresponds to a price-to-earnings (PE) ratio of 26, 24, and 22 for 2024, 2025, and 2026 respectively [7]. Financial Summary - For Q3 2024, the company reported revenue of $6.87 billion, a year-on-year increase of 2.7%, with same-store sales growth returning to positive territory [7]. - The operating profit for Q3 was $3.19 billion, a slight decrease of 0.6% year-on-year, while net profit was $2.26 billion, down 2.7% year-on-year [7]. - The company declared a dividend of $1.67 per share for the quarter, with total dividends and share buybacks reaching $5.9 billion year-to-date, representing 2.76% of the market capitalization as of November 14, 2024 [7]. - The total number of stores in the U.S. stood at 13,498, with international markets also showing growth [7]. Market Data - As of November 14, 2024, the company's closing price was $298.56, with a total market capitalization of $214 billion [2]. - The company has a total of 7.17 billion shares outstanding and a net asset value of -$5.177 billion [2]. - Total assets are reported at $56.172 billion, with a negative book value per share of -$7.22 [2].