I recommend waiting for a better discount before investing in McDonald’s Corporation (MCD).

After closing at $257.01 in the most recent trading day, McDonald’s Corporation (NYSE: MCD) closed at 255.40, down -0.63%. In other words, the price has decreased by $-1.61 from its previous closing price. On the day, 2128705 shares were traded. MCD reached its highest trading level at $256.49 during the session, while it also had its lowest trading level at $252.78.

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Our goal is to gain a better understanding of MCD by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 99.78 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 94.70. For the most recent quarter (mrq), Quick Ratio is recorded 1.40 and its Current Ratio is at 1.40.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Bernstein on September 08, 2022, initiated with a Mkt Perform rating and assigned the stock a target price of $267.

On July 27, 2022, Truist reiterated its Buy rating and also lowered its target price recommendation from $273 to $276.

RBC Capital Mkts reiterated its Outperform rating for the stock on July 27, 2022, while the target price for the stock was revised from $292 to $305.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Aug 01 when Borden Ian Frederick sold 5,320 shares for $265.00 per share. The transaction valued at 1,409,800 led to the insider holds 7,131 shares of the business.

HERNANDEZ ENRIQUE JR sold 4,500 shares of MCD for $1,188,090 on Jul 29. The Non-Exec Chairman of the Board now owns 0 shares after completing the transaction at $264.02 per share. On Jul 27, another insider, Hoovel Catherine A., who serves as the SVP – Corporate Controller of the company, sold 2,371 shares for $255.62 each. As a result, the insider received 606,075 and left with 1,184 shares of the company.

Valuation Measures:

As of this moment, McDonald’s’s Price-to-Earnings (P/E) ratio for their current fiscal year is 31.47, and their Forward P/E ratio for the next fiscal year is 24.11. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 4.39. For the stock, the TTM Price-to-Sale (P/S) ratio is 7.92.

Stock Price History:

Over the past 52 weeks, MCD has reached a high of $271.15, while it has fallen to a 52-week low of $217.68. The 50-Day Moving Average of the stock is 258.29, while the 200-Day Moving Average is calculated to be 252.05.

Shares Statistics:

The stock has traded on average 2.39M shares per day over the past 3-months and 2.71M shares per day over the last 10 days, according to various share statistics. A total of 737.50M shares are outstanding, with a floating share count of 734.48M. Insiders hold about 0.17% of the company’s shares, while institutions hold 69.80% stake in the company. Shares short for MCD as of Jul 14, 2022 were 6.1M with a Short Ratio of 2.37, compared to 6.91M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.82% and a Short% of Float of 0.83%.

Dividends & Splits

In the trailing 12 months, MCD’s forward annual dividend rate was 5.08, compared to 5.52 this year. Against a Trailing Annual Dividend Yield of 1.98%, it implies a Forward Annual Dividend Yield of 2.10%. The stock’s 5-year Average Dividend Yield is 2.31. The current Payout Ratio is 66.40% for MCD, which recently paid a dividend on Sep 15, 2022 with an ex-dividend date of Aug 30, 2022. Stock splits for the company last occurred on Mar 07, 1999 when the company split stock in a 2:1 ratio.

Earnings Estimates

Its stock is currently analyzed by 28 different market analysts. On average, analysts expect EPS of $2.6 for the current quarter, with a high estimate of $2.75 and a low estimate of $2.49, while EPS last year was $2.76. The consensus estimate for the next quarter is $2.42, with high estimates of $2.55 and low estimates of $2.29.

Analysts are recommending an EPS of between $10.5 and $9.62 for the fiscal current year, implying an average EPS of $9.88. EPS for the following year is $10.61, with 32 analysts recommending between $11.58 and $10.25.

Revenue Estimates

23 analysts predict $5.74B in revenue for the current quarter. It ranges from a high estimate of $5.92B to a low estimate of $5.45B. As of the current estimate, McDonald’s Corporation’s year-ago sales were $6.03B, an estimated decrease of -4.90% from the year-ago figure. For the next quarter, 23 analysts are estimating revenue of $5.6B, a decrease of -6.80% less than the figure of $-4.90% in the same quarter last year. There is a high estimate of $5.78B for the next quarter, whereas the lowest estimate is $5.34B.

A total of 28 analysts have provided revenue estimates for MCD’s current fiscal year. The highest revenue estimate was $23.51B, while the lowest revenue estimate was $21.35B, resulting in an average revenue estimate of $22.72B. In the same quarter a year ago, actual revenue was $23.22B, down -2.20% from the average estimate. Based on 29 analysts’ estimates, the company’s revenue will be $23.52B in the next fiscal year. The high estimate is $24.71B and the low estimate is $22.69B. The average revenue growth estimate for next year is up 3.50% from the average revenue estimate for this year.