Investment 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].

A Quarter Pounder with cheese, fries and a drink arranged at a McDonald's restaurant in El Sobrante, California, on Oct. 23, 2024.In the wake of last month's E. coli outbreak tied to McDonald's slivered onions, the fast food giant said it will invest over $100 million to boost restaurant sales and speed up the recovery at impacted franchisees.Of that total, $65 million will be invested into supporting owners who have lost business, targeting those in the hardest-hit states. Approximately $35 million will be ...

McDonald's Corporation (MCD) is currently trading at a discount compared with its industry peers. With a forward 12-month price/earnings ratio of 23.91X, the stock is priced below the industry average of 26.29X and the broader Retail-Wholesale sector’s 24.4X.P/E (F12M) Image Source: Zacks Investment Research In the past three months, MCD has delivered 8.2% growth, underperforming the industry’s 8.5% rally and the S&P 500’s 8.3% rise. The company's stock performance also lagged major industry players. Chipot ...

Although we don’t recommend trying to time the market, timing frequently matters when it comes to buying stocks. And right now, it appears that Yum! Brands Inc. NYSE: YUM may be a better stock to buy than McDonald’s Corp. NYSE: MCD. While McDonald’s is a brand unto itself, Yum! Brands is the parent company of KFC, Taco Bell, Pizza Hut, and Habit Burger Grill restaurant chains.  Yum! Brands TodayYUMYum! Brands$136.62 -0.59 (-0.43%) 52-Week Range$123.70▼$143.20Dividend Yield1.96%P/E Ratio25.54Price Target$14 ...

Geofencing Technology and Digital Ordering - McDonald's has improved customer satisfaction scores and reduced wait times by using geofencing technology to streamline mobile ordering [1] - The technology notifies restaurant crews when customers are approaching, allowing them to start preparing orders in advance [1] - This initiative is part of the "Ready on Arrival" pilot program, which aims to enhance restaurant execution and customer satisfaction [2][3] - McDonald's CEO Chris Kempczinski emphasized that the program helps with smoother kitchen operations and higher customer satisfaction by reducing wait times [3] Digital Ordering Stations - McDonald's is launching digital ordering stations that offer cashierless checkout options, allowing customers to skip the register [4] - These stations can accept cash and provide change, replacing existing kiosks that required non-card-paying customers to wait in line [4] Digital Engagement and Growth - Consumers engage in digital restaurant-related activities 12.5 days per month, highlighting the importance of digital solutions in the industry [5] - Digital ordering provides a quick meal solution without extensive planning, with user-friendly interfaces making it easy to place orders [5] - McDonald's CFO Ian Borden noted that digital penetration is growing across top markets, evidenced by increased loyalty sales and record mobile app orders [6] - This growth in digital engagement leads to greater customer frequency and increased spending by loyalty customers [6]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents McDonald's financial statements, management's discussion and analysis of performance, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) McDonald's reported Q3 2024 revenues of $6.87 billion and net income of $2.26 billion, with nine-month revenues at $19.53 billion and net income at $6.21 billion Condensed Consolidated Statement of Income (in millions) | Indicator | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$6,873** | **$6,692** | **$19,532** | **$19,088** | | Operating Income | $3,188 | $3,208 | $8,844 | $8,845 | | **Net Income** | **$2,255** | **$2,317** | **$6,207** | **$6,430** | | Diluted EPS | $3.13 | $3.17 | $8.59 | $8.76 | Condensed Consolidated Balance Sheet (in millions) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and equivalents | $1,221 | $4,579 | | **Total Assets** | **$56,172** | **$56,147** | | Long-term debt | $38,990 | $37,153 | | **Total Liabilities** | **$61,349** | **$60,854** | | Total shareholders' equity (deficit) | ($5,177) | ($4,707) | Condensed Consolidated Statement of Cash Flows (9 Months Ended, in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Cash provided by operations** | **$6,816** | **$7,123** | | Cash used for investing activities | ($4,604) | ($2,345) | | Cash used for financing activities | ($5,617) | ($3,788) | | **Cash and equivalents at end of period** | **$1,221** | **$3,496** | - On January 30, 2024, the Company acquired an additional **28% ownership stake** in Grand Foods Holding (China) for **$1.8 billion** in cash, increasing its total equity ownership to **48%**[33](index=33&type=chunk) - As of September 30, 2024, there were **42,819 systemwide restaurants**, of which **40,755 (approximately 95%)** were franchised[25](index=25&type=chunk) [Management's Discussion and Analysis (MD&A)](index=18&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 global comparable sales decline of 1.5%, strategic focus on "Accelerating the Arches," and provides a 2024 financial outlook [Strategic Direction](index=19&type=section&id=Strategic%20Direction) The "Accelerating the Arches" strategy focuses on marketing, core menu, and the 4D's (Digital, Delivery, Drive Thru, Restaurant Development) to drive growth - The "Accelerating the Arches" growth strategy is centered on three pillars: Maximize Marketing, Commit to the Core, and Double Down on the 4D's (Digital, Delivery, Drive Thru, and Restaurant Development)[59](index=59&type=chunk)[60](index=60&type=chunk) - Strategic goals include expanding the McCrispy sandwich to nearly all markets by **2025**, growing **90-day active loyalty users to 250 million by 2027**, and reaching **50,000 total restaurants by the end of 2027**[59](index=59&type=chunk)[60](index=60&type=chunk) [Financial Performance](index=23&type=section&id=Financial%20Performance) Q3 2024 global comparable sales decreased by 1.5%, primarily due to declines in international markets, while consolidated revenues increased by 3% to $6.87 billion Comparable Sales Growth (vs. Prior Year) | Segment | Q3 2024 | 9 Months 2024 | | :--- | :--- | :--- | | U.S. | 0.3% | 0.7% | | International Operated Markets | (2.1)% | (0.3)% | | International Developmental Licensed Markets | (3.5)% | (1.7)% | | **Total** | **(1.5)%** | **(0.2)%** | - Performance in the International Developmental Licensed Markets was negatively impacted by the war in the Middle East and negative comparable sales in China[63](index=63&type=chunk)[68](index=68&type=chunk) - **2024 results included pre-tax charges of $146 million (9 months)** for "Accelerating the Organization" restructuring and **$142 million (9 months)** for transaction costs and impairments related to the sale of the South Korea business and acquisition of the Israel business[73](index=73&type=chunk)[92](index=92&type=chunk) Operating Income by Segment (in millions) | Segment | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | U.S. | $1,493 | $1,478 | $4,400 | $4,268 | | International Operated Markets | $1,602 | $1,585 | $4,459 | $4,295 | | Intl. Dev. Licensed Markets & Corp. | $93 | $146 | ($15) | $282 | | **Total Operating Income** | **$3,188** | **$3,208** | **$8,844** | **$8,845** | [Cash Flows](index=36&type=section&id=Cash%20Flows) Cash provided by operations for the first nine months of 2024 was $6.8 billion, with a significant increase in cash used for investing activities - Cash provided by operations for the first nine months of 2024 was **$6.8 billion**, slightly down from **$7.1 billion in 2023**[100](index=100&type=chunk) - Cash used for investing activities increased by **$2.3 billion** year-over-year, driven by the increased ownership stake in McDonald's China and the acquisition of the business in Israel[100](index=100&type=chunk) [2024 Outlook](index=37&type=section&id=Outlook) The company projects full-year 2024 capital expenditures between $2.5 and $2.7 billion, with over 1,600 net new restaurant openings and strong operating margins - Expects over **1,600 net restaurant additions in 2024**, contributing nearly **2% to systemwide sales growth**[103](index=103&type=chunk) - Full-year 2024 capital expenditures are forecasted to be **$2.5 to $2.7 billion**[103](index=103&type=chunk) - The company anticipates a full-year operating margin in the **mid-to-high 40% range** and a free cash flow conversion rate in the **90% range**[103](index=103&type=chunk) [Market Risk Disclosures](index=39&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes were reported in the company's quantitative and qualitative disclosures about market risk compared to the 2023 Annual Report - There were no material changes to the market risk disclosures from the **2023 Annual Report on Form 10-K**[131](index=131&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, despite ongoing technology and operating model transformations - The CEO and CFO concluded that disclosure controls and procedures were effective as of **September 30, 2024**[132](index=132&type=chunk) - The company is in the process of a multi-year technology and operating model transformation, which involves implementing new systems and modifying internal controls over financial reporting[133](index=133&type=chunk) [Part II. Other Information](index=40&type=section&id=Part%20II.%20Other%20Information) This section details significant risks to the business, including strategic, operational, technological, legal, and macroeconomic factors, and reports on share repurchase activities [Risk Factors](index=40&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company faces strategic, operational, technological, legal, and macroeconomic risks, including competition, supply chain issues, and regulatory complexities - **Strategic Risks:** Include failure to successfully execute business strategies, preserve brand value, and manage intense competition from traditional and non-traditional players[108](index=108&type=chunk)[111](index=111&type=chunk) - **Operational Risks:** Stem from the global scope of business, potential supply chain interruptions, reliance on franchisee success, labor cost and availability, and food safety concerns, including a noted E. coli outbreak investigation in October 2024[113](index=113&type=chunk)[114](index=114&type=chunk)[119](index=119&type=chunk) - **Technology & Legal Risks:** Include IT system failures, cybersecurity breaches, increasing regulatory complexity, and litigation related to employment, franchising, and product claims[120](index=120&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - **Macroeconomic Risks:** Arise from unfavorable economic conditions, currency fluctuations, health pandemics, commodity price volatility, and an increasing focus on environmental and social matters[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Share Repurchases](index=40&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) McDonald's repurchased approximately 1.65 million shares for $444 million in Q3 2024 under its $15 billion share repurchase program Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2024 | 874,297 | $254.87 | | August 2024 | 293,752 | $270.52 | | September 2024 | 485,199 | $291.20 | | **Total** | **1,653,248** | **$268.31** |

McDonald's (MCD) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this world's biggest hamburger chain have returned -3.2%, compared to the Zacks S&P 500 composite's +3.2% change. During this period, the Zacks Retail - Restaurants industry, which McDonald's falls in, has lost 0.3%. The key question now is: What could be the stock's future direction?Althoug ...

McDonald's stock hasn't made for a great investment this year, but could it still be a good buy for the long-term-minded investor?Shares of fast food giant McDonald's (MCD 1.06%) have been falling as the company deals with an outbreak of E. coli at its restaurants. At least 90 people have become ill due to the outbreak -- including one death -- apparently due to contaminated onions served on its burgers. As McDonald's moves to address the issue, investors may not be easily convinced. And when you consider t ...

McDonald's (MCD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earnin ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.McDonald's currently has an average brokerage recommendation ( ...