{"id":15121,"date":"2022-09-12T12:56:00","date_gmt":"2022-09-12T12:56:00","guid":{"rendered":"https:\/\/valutico.com\/how-fast-can-the-fast-food-giant-mcdonalds-still-grow\/"},"modified":"2023-11-26T09:58:59","modified_gmt":"2023-11-26T09:58:59","slug":"how-fast-can-the-fast-food-giant-mcdonalds-still-grow","status":"publish","type":"post","link":"https:\/\/valutico.com\/fr\/how-fast-can-the-fast-food-giant-mcdonalds-still-grow\/","title":{"rendered":"How fast can the fast food giant McDonald\u2019s still grow?"},"content":{"rendered":"<h1><span style=\"font-weight: 400;\">How fast can the fast food giant McDonald\u2019s still grow?<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Weekly Valuation &#8211; Valutico | <\/span><span style=\"font-weight: 400;\">2 <\/span><span style=\"font-weight: 400;\">September 2022<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"lazyload alignnone wp-image-21704 size-large\" src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-1024x683.jpg\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271024%27%20height%3D%27683%27%20viewBox%3D%270%200%201024%20683%27%3E%3Crect%20width%3D%271024%27%20height%3D%27683%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-200x133.jpg 200w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-300x200.jpg 300w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-400x267.jpg 400w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-600x400.jpg 600w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-768x512.jpg 768w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-800x533.jpg 800w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-1024x683.jpg 1024w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-1200x800.jpg 1200w, https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Mcdonalds-1536x1024.jpg 1536w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2>About McDonald&rsquo;s<\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">McDonald&rsquo;s reported strong business growth in the second quarter (end of July), but earned significantly less due to high expenses and the withdrawal from its Russian operations. Profit fell by 46% to USD 1.2 billion, although the company was able to increase its sales by 9.7% in all regions ( excluding Russia).<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>How is McDonald&rsquo;s performing?<\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Due to the withdrawal from business in Russia as a result of the Ukraine war, McDonald\u2019s was forced to bear an extraordinary charge of USD 1.2 billion. Another burden is rising costs and high inflation, as a resu<\/span>lt revenue fell by three percent to USD 5.7 billion. However, looking at sales figures excluding the Russian operation, McDonald\u2019s did an extraordinary job as they exceeded expectations with revenue growth of 9.7%.<\/p>\n<p><span style=\"font-weight: 400;\">McDonald\u2019s was also in the media recently due to their partnership with Beyond Meat, which expired in July. This partnership had the aim of testing a plant-based alternative for the product range of the fast food restaurant. This was an important step as the competition, such as the likes of Burger King, is already offering all their burgers as plant based versions in certain markets. However, this field test with Beyond Meat patties did not have the expected success in the US. The companies therefore ended their alliance for now, which led to a sharp fall in the share price of Beyond Meat.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This year McDonald\u2019s will pay out a dividend of USD 5.52. At the current share price of approximately USD 260, the dividend yield is 2.10% (as of September 2022). McDonald\u2019s has increased its dividend payo<\/span>ut every year since 1976, when the company first started paying dividends. Last year in September 2021, McDonald&rsquo;s announced a 7%, or 9 cents, increase from the previous quarter (USD 1.29). The share has been listed on the stock exchange since 1965.<\/p>\n<p>&nbsp;<\/p>\n<h2>Valutico Analysis<\/h2>\n<p><img decoding=\"async\" class=\"lazyload alignright wp-image-11923\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27500%27%20height%3D%27384%27%20viewBox%3D%270%200%20500%20384%27%3E%3Crect%20width%3D%27500%27%20height%3D%27384%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/Copy-of-Weekly-Valuation-Editable-Scale.pptx-e1663333993766-600x461.png\" alt=\"Graph illustrating that McDonald's Corporation is fairly valued with a Market Cap of $193 Billion and a valuation range of $160 - $225 Billion\" width=\"500\" height=\"384\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The current market cap is USD 193 billion. Our DCF WAC<\/span><span style=\"font-weight: 400;\">C analysis (WACC = 5.1%) calculates a 20% higher value of USD 225 billion. Comparing McDonald<\/span><span style=\"font-weight: 400;\">\u2019s <\/span><span style=\"font-weight: 400;\">with its peers (Domino\u2019s, Papa John\u2019s, Starbucks, Yum! Brands), results in a slightly lower valuation range of USD 160 to USD 180 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Given the above, we conclude that McDonald\u2019s is currently fairly valued with a valu<\/span>ation range of USD 160 &#8211; USD 225 billion.<\/p>\n<p><strong><a href=\"https:\/\/valutico.com\/companies\/mcdonald-s-corporation-2accca50-8049-4cfa-bb45-5402769f41df\/evaluations\/4ulrDqTUOWzTHQ3LrAmwtYZKQtFdryhjLf9030uddrlZvnNZx9XstzXe-OQh-mRjIJ5LB5tm-y2LO_h45ANdGQ\/share\">Click here for the detailed valuation<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2>Valuation Football Field<\/h2>\n<p><img decoding=\"async\" class=\"lazyload wp-image-11905 alignnone\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27895%27%20height%3D%27814%27%20viewBox%3D%270%200%20895%20814%27%3E%3Crect%20width%3D%27895%27%20height%3D%27814%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/McDonalds-Valuation-Overview.png\" alt=\"\" width=\"895\" height=\"814\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>Calculating the WACC<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload alignleft wp-image-11916 size-large\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271024%27%20height%3D%27387%27%20viewBox%3D%270%200%201024%20387%27%3E%3Crect%20width%3D%271024%27%20height%3D%27387%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/valutico.com\/wp-content\/uploads\/2022\/09\/McDonalds-valuation-1024x387.png\" alt=\"Discount Rates Chart, open the detailed valuation to access\" width=\"1024\" height=\"387\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How fast can the fast food giant McDonald\u2019s still grow? [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":21704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"footnotes":""},"categories":[35],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How fast can the fast food giant McDonald\u2019s still grow? - Valutico<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/valutico.com\/how-fast-can-the-fast-food-giant-mcdonalds-still-grow\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How fast can the fast food giant McDonald\u2019s still grow? - Valutico\" \/>\n<meta property=\"og:description\" content=\"How fast can the fast food giant McDonald\u2019s still grow? 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