AllAnalyst Report
logoMorningstarApril 01, 2021

McDonald's Corporation: Stimulus and Soft Comps Should Push a Return to Growth in 2020; We Maintain Our FVE for McDonald's

Symbols
MCD
Sector(s)
Consumer Cyclical
Rating
Current Price
$233.08
Fair Value
Economic Moat
Stewardship
Summary

McDonald’s Corporation is the largest restaurant owner-operator in the world, with 2020 systemwide sales of $93 billion across 39,000 stores and 119 countries. McDonald’s revolutionized the restaurant industry with a cheap and fast core menu, building its impressive footprint through partnerships with independent restaurant franchisees. The firm earns 57% of its revenue from franchise royalty fees and lease payments, with the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed. McDonald’s owns 55% of the real estate and 80% of the buildings in its franchise system, offering it substantial leverage in maintaining quality standards and consistency across markets.

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