A rising tide lifts all boats, but sometimes even the strongest vessels face choppy waters. For McDonald’s (NYSE:MCD), December presents a mixed picture—while the company boasts solid revenue of around $26 billion and a forward dividend rate of 7.44%, recent earnings show a net income of $8.2 billion, which is a positive sign. However, with a valuation market value near $299 billion and a valuation real value of about $276 billion, investors should keep a close eye on key indicators like the 50-day moving average at roughly $306 and the analyst target price estimated at $330.1. The stock’s moderate beta of 0.504 suggests less volatility, but with a total risk alpha of -0.16 and a market risk-adjusted performance of -0.12, caution is warranted as the industry navigates uncertain economic currents. McDonald’s is set to release its earnings tomorrow. While many baby boomers remain cautious about the hotels, restaurants, and leisure sectors, it’s worth taking a closer look at McDonald’s as a potential investment. Despite current uncertainties, we maintain a positive outlook, expecting a rebound driven by its strong brand and resilient business model. We'll analyze the key factors that support our optimism and why McDonald’s could be a steady addition to your portfolio, even amid the broader cautious sentiment.
What is the right price you would pay to acquire a share of McDonalds? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with McDonalds this year
Annual and quarterly reports issued by McDonalds are formal
financial statements that are published yearly and quarterly and sent to McDonalds stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as McDonalds often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
McDonalds Gross Profit
McDonalds Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing McDonalds previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show McDonalds Gross Profit growth over the last 10 years. Please check McDonalds'
gross profit and other
fundamental indicators for more details.
Is McDonalds a risky opportunity?
Let's check the volatility. McDonalds is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind McDonalds (USA Stocks:MCD) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a McDonalds stock makes you a part-owner of that company.
McDonalds Current Consensus
Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering McDonalds. The McDonalds consensus assessment is calculated by taking the average estimates from all of the analysts covering McDonalds.
| Strong Buy | 15 | 41.67 |
| Buy | 6 | 16.67 |
| Hold | 15 | 41.67 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
A penny saved is a penny earned, and for McDonald's (NYSE:MCD), December presents a cautious yet promising outlook. The stock is currently trading just above its 50-day moving average at around 305.70, with a 52-week high of 322.66, indicating some room for growth. Despite a modest operating margin of 0.48% and a debt-to-equity ratio of 4.35%, McDonald's maintains a strong market cap of approximately 211.49 billion dollars and a solid cash flow from operations of 9.45 billion dollars. Investors should keep an eye on the company's revenue growth of 5.4% and its valuation metrics, as the stock's risk-adjusted performance is slightly negative at -0.01. With a target price of 330.10 and institutional ownership over 75%, McDonald's remains a resilient player in the consumer cyclical sector, but careful monitoring of debt levels and profit margins is advised before making new moves.
Will price continue to surge in December 2025?
Recently, McDonald's stock saw its maximum drawdown narrow to just 5.08%, hinting at a period of calmer trading. This reduced volatility could signal that the stock is stabilizing, possibly paving the way for steady gains down the line. If this trend persists, we might see more consistent performance into December 2025, making it worth watching how the low-volatility environment unfolds. Currently, McDonald's shows very subdued volatility, with a skewness of 0.25 and kurtosis of 0.9. Keeping an eye on these metrics helps investors gauge risk, especially during different market phases.
During downturns, increased volatility can hit McDonald's stock hard, often prompting investors to rebalance their portfolios as share prices dip. Understanding these shifts can be key to making smarter moves.Despite today’s modest dip in the broader market, McDonald’s stock managed to edge higher, signaling investor confidence in its steady performance. With an analyst consensus rating of "Buy" and a strong number of "Strong Buys" totaling
15, the outlook remains optimistic. The stock’s current valuation of around $299.21 suggests it’s trading close to its market value, with a possible upside to approximately $289.12. While some analysts see a downside risk near $287.53, the overall sentiment points toward continued resilience, especially given McDonald’s reputation for stable earnings and global brand strength. For investors seeking a combination of growth potential and stability, McDonald’s remains a compelling option, particularly as it approaches its fiscal year-end in December..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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