McDonalds Competitors

MCD Stock  USD 298.97  4.31  1.46%   
McDonalds competes with Chipotle Mexican, Yum Brands, Wendys, and Papa Johns; as well as few others. The company runs under Hotels, Restaurants & Leisure sector within Consumer Discretionary industry. Analyzing McDonalds competition allows you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Investors sometimes prefer comparable analysis of McDonalds to its intrinsic valuation because they are able to contrast its competitors on a relative basis. Check out McDonalds Correlation with its peers.
For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.
You can use the Comparative Equity Analysis module to analyze the advantages of investing in your portfolio's related equities across multiple sectors and thematic ideas. Please use the input box below to enter symbols for particular investments you would like to analyze. With the equity comparison module, you can estimate the relative effect of McDonalds competition on your existing holdings.
  
As of November 11, 2024, Return On Tangible Assets is expected to decline to 0.09. In addition to that, Return On Capital Employed is expected to decline to 0.15. At present, McDonalds' Total Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 10.5 B, whereas Non Current Assets Total are forecasted to decline to about 25.5 B.
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Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of McDonalds' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
298.46299.58300.70
Details
Intrinsic
Valuation
LowRealHigh
298.01299.13300.25
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Naive
Forecast
LowNextHigh
300.41301.53302.65
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35 Analysts
Consensus
LowTargetHigh
273.24300.26333.29
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McDonalds Competition Correlation Matrix

Typically, diversification allows investors to combine positions across different asset classes to reduce overall portfolio risk. Correlation between McDonalds and its competitors represents the degree of relationship between the price movements of corresponding stocks. A correlation of about +1.0 implies that the price of McDonalds and its corresponding peer move in tandem. A correlation of -1.0 means that prices move in opposite directions. A correlation of close to zero suggests that the price movements of assets are uncorrelated; in other words, the historical price movement of McDonalds does not affect the price movement of the other competitor.
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High positive correlations   
PZZAWEN
WENCMG
PZZACMG
  
High negative correlations   
WENYUM
YUMCMG
PZZAYUM

Risk-Adjusted Indicators

There is a big difference between McDonalds Stock performing well and McDonalds Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze McDonalds' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Cross Equities Net Income Analysis

Compare McDonalds and related stocks such as Chipotle Mexican Grill, Yum Brands, and The Wendys Net Income Over Time
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Gross Profit MarginPrice Fair Value
Return On Equity
201020112012201320142015201620172018201920202021202220232024
CMG(24 M)214.9 M278 M327.4 M445.4 M475.6 M22.9 M176.3 M176.6 M350.2 M355.8 M653 M899.1 M1.2 B1.3 B
YUM(111 M)1.3 B1.6 B1.1 B1.1 B1.3 B1.6 B1.3 B1.5 B1.3 B904 M1.6 B1.3 B1.6 B1.1 B
WEN(7.8 M)9.9 M3.1 M45.5 M121.4 M161.1 M129.6 M194 M460.1 M136.9 M117.8 M200.4 M177.4 M204.4 M214.7 M
PZZA2.5 M55.7 M61.7 M69 M73.3 M75.7 M103.4 M103.7 M1.6 M4.9 M57.9 M120 M67.8 M82.1 M51.6 M

McDonalds and related stocks such as Chipotle Mexican Grill, Yum Brands, and The Wendys Net Income description

Net income is one of the most important fundamental items in finance. It plays a large role in McDonalds financial statement analysis. It represents the amount of money remaining after all of McDonalds operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

McDonalds Competitive Analysis

The better you understand McDonalds competitors, the better chance you have of utilizing it as a position in your portfolios. From an individual investor's perspective, McDonalds' competitive analysis can cover a whole range of metrics. Some of these will be more critical depending on who you are as an investor and how you react to market volatility. However, if you are locking your investment sandscape to a long-term horizon, comparing the fundamental indicator across McDonalds' competition over several years is one of the best ways to analyze its investment potential.
    
 Better Than Average     
    
 Worse Than Peers    View Performance Chart
MCD CMG YUM WEN PZZA
 1.46 
 298.97 
McDonalds
 1.03 
 58.81 
Chipotle
 0.11 
 137.21 
Yum
 1.76 
 19.54 
Wendys
 0.79 
 55.09 
Papa
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(90 Days Market Risk)
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McDonalds Competition Performance Charts

Five steps to successful analysis of McDonalds Competition

McDonalds' competitive analysis is the process of researching and evaluating its competitive landscape. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by McDonalds in relation to its competition. McDonalds' competition analysis typically involves several steps, including:
  • Identifying the key players in the market: This involves identifying the major competitors of McDonalds in the market, both direct and indirect, as well as new entrants and disruptive technologies.
  • Assessing the strengths and weaknesses of each competitor: This involves evaluating each competitor's strengths and weaknesses in areas such as product offerings, market share, brand recognition, financial performance, and distribution channels.
  • Understanding the competitive environment: This involves evaluating the regulatory environment, economic conditions, and other factors that may impact McDonalds' competitive landscape.
  • Identifying opportunities and threats: This involves using the information gathered during the analysis to identify opportunities and threats to McDonalds, and developing a strategy to address them.
  • Evaluating the competitive landscape: This involves understanding the competitive dynamics of the market, such as pricing, marketing, and distribution strategies, as well as analyzing the competitive advantage of each competitor.
Competitive analysis is an essential tool for businesses to stay ahead of the competition and can be used to inform decision-making and strategy development. By understanding the competitive landscape and staying informed about the activities of competitors, a company can make more informed decisions and improve its overall performance.

Complement your McDonalds position

In addition to having McDonalds in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports:
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
6.68
Earnings Share
11.39
Revenue Per Share
36.01
Quarterly Revenue Growth
0.027
The market value of McDonalds is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds' value that differs from its market value or its book value, called intrinsic value, which is McDonalds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds' market value can be influenced by many factors that don't directly affect McDonalds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McDonalds' value and its price as these two are different measures arrived at by different means. Investors typically determine if McDonalds is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.