How to Buy Mcdonalds Stock
Mcdonalds Corp
Mcdonalds is a restaurant company located in Illinois, United States, which is part of the Consumer Cyclical sector, and is traded under the ticker MCD on the NYSE exchange.
Mcdonalds stock last closed at $276.88, up 0.47% from the previous day, and has decreased 5.57% in one year. It has underperformed other stocks in the Restaurants industry by 0.37 percentage points. Mcdonalds stock is currently +12.68% from its 52-week low of $245.73, and -8.44% from its 52-week high of $302.39.
As of Apr 23, 2024, there are 722.05M shares of MCD outstanding. The market cap of MCD is $199.92B. In the past 24 hours, 3.22M MCD shares were traded.
How to Buy Mcdonalds Stock
Not sure how to invest in Mcdonalds stock? Here's how.
- Decide where to buy Mcdonalds stock: You need to decide on an online brokerage, but don't worry - we've tested dozens of stock brokerages and apps to help you figure out where to buy Mcdonalds stock.
- Sign up for your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've selected.
- Deposit money your investment account: Choose your payment method and add your details.
- Analyze Mcdonalds stock: The Mcdonalds ticker symbol is MCD. Is Mcdonalds stock a good investment? Should you buy shares of MCD? How do MCD's underlying business fundamentals look? Do top analysts think Mcdonalds is a good buy? Why has MCD's stock price moved recently? (Hint: Our stock analysis website can help you decide if MCD is a good stock to buy).
- Place your MCD trade: Decide if you will purchase MCD shares at the current market price or use a limit order to purchase MCD stock at a given price.
- Get the latest scoop on your MCD investment: Create a watchlist to the latest updates on your new investment in Mcdonalds shares.
Step 1: Decide where to buy Mcdonalds stock
You will need an online brokerage account in order to access the NYSE market and buy MCD stock.
Our recommended brokerage: eToro
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Open eToro AccountStep 2: Sign up for your brokerage account
Now that you've picked the best brokerage, the next step is to fill out some personal information so you can buy MCD stock today.
How to Create a New Brokerage Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Provide your personal info to create your new brokerage account.
- Send your application by hitting the "Create Account" button. Get started with eToro today
Step 3: Deposit money your investment account
Now that you've created your account on apps for stocks, you need to deposit funds:
Check out the walkthrough below to see the process of depositing money into your new brokerage account.
Step 4: Analyze Mcdonalds stock
Once you have decided on the best place to buy Mcdonalds stock, it's critical to analyze their stock before you buy, so you actually wrap your head around the risk and upside.
Mcdonalds Metrics
MCD Overview
WallStreetZen was designed to help part-time investors do more in-depth fundamental analysis quickly.
You can view all of the due diligence checks on MCD's stock page.
Is MCD stock properly valued?
Analysts use many financial metrics, analyses, models, and charts to gauge MCD's fair value.
Using relative valuations methods:
- MCD could be undervalued based on its P/E ratio of 23.81x, relative to Restaurants industry P/E ratio of 45.77x
- MCD may be overvalued based on its PEG ratio of 3.39x
You can access additional valuation research on MCD's stock here.
How do MCD Financials look?
Signs that MCD is financially healthy:
- MCD profit margin has gone up from 26.6% to 33.2% in the past year.
- MCD earnings of $11.88B is not sufficient to cover its interest payments.
- There are more short-term assets than short-term liabilities on the MCD balance sheet.
Signs that MCD is not financially healthy:
- There are more long-term liabilities than short-term assets on the MCD balance sheet.
- Total MCD debt is still negative.
- MCD's operating cash flow of $9.61B allows it to safely service it's debt of $53.09B.
- MCD debt to equity ratio of -12.93 is negative.
Is it a good time to buy Mcdonalds stock, according to analysts?
Out of 18 Equities analysts who track MCD, the consensus analyst rating on Mcdonalds is a Strong Buy
It's important to note that analyst forecasts are not stock recommendations, nor are they financial advice.
Latest MCD Analyst Forecasts
David Palmer, a top 16% analyst from Evercore ISI Group maintains MCD with a buy rating and maintains their MCD price target from $330.00 to $330.00, on Mar 27, 2024.
David Tarantino, a top 5% analyst from Baird reiterates MCD with a buy rating and maintains their MCD price target from $315.00 to $315.00, on Feb 6, 2024.
Joshua Long, a top 3% analyst from Stephens & Co. reiterates MCD with a strong buy rating and maintains their MCD price target from $320.00 to $320.00, on Feb 6, 2024.
Stephens & Co.'s Joshua Long reiterated their Strong Buy rating on Mcdonalds (NYSE: MCD). The analyst also maintained a $320 price target.
Long left their price target on Mcdonald's unchanged after seeing the company's Q4 and FY 2023 earnings report, released on 2024/02/05.
The analyst said that although Q4's top line was "softer than expected," they nevertheless remain "encouraged by the general strength of the company's global business."
The print revealed positive traffic in all segments, Long detailed.
Looking ahead, the analyst characterized Mcdonald's as "favorably positioned to gain market share given the company's ability to leverage menu innovation, a strong digital offering, and added convenience layers via delivery and digital platforms."
Management's FY 2024 guidance "is achievable," Long predicted, although 2H weighted.
Earnings Report
Mcdonalds reported:
For Q4 2023:
- EPS of $2.95, which beat the Zacks Consensus Estimate of $2.81 and, by 13.9%, Q4 2022's $2.59.
- Revenue of $6.4B, which missed the Zacks Consensus Estimate of $6.5B but beat Q4 2022's $5.93B by 7.9%.
For FY 2023:
- EPS of $11.94, up 18.2% from FY 2022's $10.10.
- Revenue of $25.49B, up 10% from FY 2022's $ 23.18B.
In the earnings call, CFO Ian Borden guided for FY 2024:
- "2024 comp sales growth will continue to moderate as we return to a more normalized level of growth with expectations closer to historical averages of between 3% and 4% in our U.S. and IOM segments."
- "With expectations of moderating sales growth and ongoing inflationary headwinds, we expect our company-operated margin percent will remain pressured in the near term and we expect the FY 2024 company-operated margin percent will be relatively in line with 2023."
- "We expect 2024 G&A [General & Administrative expenses] as a percentage of system-wide sales to be about 2.2%, which reflects elevated investments in technology, digital and global business services or GBS."
- "We anticipate an operating margin of mid to high 40% in 2024, driven primarily by top-line growth and franchise margin performance.
- "Regarding capital expenditures, we plan to spend between $2.5B and $2.7B this year, more than half of which will be dedicated to new unit openings across our U.S. and IOM segments.
- "We anticipate about 4% unit growth, driven by more than 1,600 net restaurant additions in 2024.
- "We expect to generate strong cash flow in 2024 with free cash flow conversion in the 90% range."
President & CEO Chris Kempczinski commented: “Our global comparable sales growth of 9% for the year is a testament to the tremendous dedication of the entire McDonald’s System.
"Strong execution of our Accelerating the Arches strategy has driven over 30% comparable sales growth since 2019 as our talented crew members, and the industry’s best franchisees and suppliers have demonstrated proven agility with a relentless focus on the customer.
"By evolving the way we work across the System, we remain confident in the resilience of our business amid macro challenges that will persist in 2024."
Christopher Carril, a top 27% analyst from RBC Capital maintains MCD with a buy rating and lowers their MCD price target from $340.00 to $335.00, on Feb 6, 2024.
Jeffrey A. Bernstein, a top 7% analyst from Barclays maintains MCD with a strong buy rating and lowers their MCD price target from $343.00 to $340.00, on Feb 6, 2024.
You can dive deeper into what analysts are forecasting on the Mcdonalds stock forecast page.
MCD Trading Indicators
MCD Performance Metrics
Last year, MCD earnings were $8.47B. In the last five year, MCD's earnings have gone up by 8.85% per year. This was slower than the Restaurants industry average of 15.87%.
Last year, MCD revenue was $25.49B. During the last five year, MCD's revenue has grown by 3.7% per year. This was slower than the Restaurants industry average of 8.78%.
Dive into MCD's earnings and revenue performance here.
Latest Insiders Trades at MCD
Over the last 12 months, insiders at MCD have sold more shares than they have bought.
Joseph M. Erlinger, President McDonalds USA of MCD, was the latest MCD insider to sell. They sold $303,750.72 worth of MCD stock on Apr 23, 2024.
Research more about who owns MCD stock here.
Does MCD provide a stable income stream?
Mcdonalds pays a dividend of 2.3%, compared to the Restaurants industry's average dividend yield of 2.79%. If you owned $1,000 of MCD stock, you would have received $23.04 in the past 12 months.
Mcdonalds dividend payments have consistently grown over the past decade and have remained stable.
Dig into more data about Mcdonalds dividend yield and history here.
What do other traders have to say about MCD?
One of the primary reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to find out what other community members have to say.
Step 5: Place your MCD trade
You have two main order types:
- Market order: A market order is an order to buy or sell a security at the best price on the market.
Market orders are usually the easiest way to buy. - Limit order: A limit order enables you to buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at an exact price, place a limit order.
Hit the Open Trade button and your broker will execute the order.
If you need additional help with buying stocks on eToro, click the helpful video below:
Step 6: Get the latest scoop on your MCD investment
Now that you own some shares in MCD, you'll want to stay up-to-date on your new investment.
Start a watchlist to get notified of the latest news about your MCD stock.
MCD Feed
How to Buy Stock in Mcdonalds
To reiterate, here are the 6 steps to buy Mcdonalds stock:
- Decide where to buy Mcdonalds stock
- Sign up for your brokerage account
- Deposit money your investment account
- Analyze Mcdonalds stock
- Place your MCD trade
- Get the latest scoop on your MCD investment
If you require a online brokerage, eToro is our favorite venue.
Get Started with eToro TodayIf you want to get updates on your new investment in Mcdonalds, click the button below.
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