Commonly called McDo, McDonald's is the world's largest fast food chain. Elle compte plus de 32'000 succursales et 400'000 employés dans plus de 110 pays. Environ 70% des restaurants McDonald du monde sont franchisés. Le concept a été créé déjà en 1940 par Richard et Maurice McDonald. Est-il encore nécessaire de présenter ses produits célébrissimes à travers toute la planète, comme le Big Mac ou le Cheese Royal ? MCD fait partie des quelques rares sociétés a offrir de la valeur tout en étant un relais de croissance intéressant.
The company experienced a dramatic turnaround in 2003, driven by a two-pronged strategy. In the United States, McDonald's increased sales by renovating existing branches, increasing menu selection and extending opening hours. Internationally, McDonald's grew very quickly, opting for franchising. Despite the company's already enormous size, sales literally exploded.
International operations drive profit growthThe rising middle class, particularly in emerging markets like China, India and Latin America, represents a huge opportunity for McDonald's. 
The company is well established in Europe, Asia/Pacific Islands, the Middle East and Africa. Its growth in Europe is mainly driven by France, Germany and the UK. In Asia, senior management has indicated that there is significant potential in the Chinese market. The company has adapted its menus to local cultures, such as Mac Teriyaki in Japan, Filet-O-Fish variations in China, and lamb instead of beef in India.
| Geographic region | Percent of total revenue |
|---|---|
| UNITED STATES | 35% |
| France, Germany, United Kingdom | 21% |
| Rest of Europe | 14% |
| Australia, China, Japan | 8% |
| Rest of Asia, Middle East, Africa | 8% |
THE dividend yield moyen sur le long terme s'élève à un très correct 3.25%, tandis que annual growth in distributions is sustained, with 15,26%. McDonald's has increased its dividend for 35 consecutive years. Despite the performance and sustained growth, the distribution ratio remains perfectly acceptable, at 48.01%, which leaves the company with good room to maneuver in the event of a difficult passage, and ensures the progression of the dividend in the future.
There volatility, avec 16.57%, est plus élevée que celle de notre portfolio, mais reste encore correcte. Celle-ci est surtout due à la progression importante du cours de McDo. On constate d'ailleurs ci-dessous que le title has significantly outperformed the market for many years : +25'000% since 1970... happy are the enlightened who bought shares at the time and especially who kept them! Despite this volatility and this prodigious performance, the title is not very sensitive to market variations, with a beta of only 0.43. The company indeed manages to hold its own in both recessionary and growth phases.
McDonald's sensitive to relative dollar strength. Although the company is based in the United States, McDonald's generates over 60% of its overseas business. As other currencies strengthen against the dollar, goods sold in foreign markets become more valuable in USD terms, thereby improving revenues. A strengthening dollar, on the other hand, reduces the value of overseas sales. This finding translates into a strong inverse sensitivity to changes in the greenback, with a $risk of -0.79, a fall in the dollar being accompanied in principle by an increase in the value of the security in CHF.
MCD is an exceptional title, qui possède toutes les qualités que l'on peut rechercher chez un payeur de dividendes. Le rendement, la croissance et l'historique du dividende, le distribution ratio, la volatilité, la sensibilité face au dollar... tous les voyants sont au vert.
If we had to put a single downside to this beautiful picture, it would be the impressive increase in the share price. However, the fundamentals remain good and the valuation is still affordable, even if the PER is a little high at 18.90. The current yield is also interesting, with 2.80%.
In view of these figures, our analysis model considers that McDonald's is still an interesting buying opportunity.
Sources: Wikinvest, Swissquote, Yahoo Finance, dividends.chDiscover more from dividendes
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Good evening,
I could add that McDonald's (NYSE: MCD) will benefit from the impoverishment of households in Western countries linked to the loss of their purchasing power because the menus offered are at cheap prices. Another advantage is that the company attracts customers of all age categories.
Sincerely,
Mr. Sovanna SEK.
My blog: geny-finances.blogspot.com
Cheap, but you're hungry 2 hours later 😉
Well, as long as it brings in dividends, I'm not going to be picky...
I bought back into MCD yesterday after a significant drop in the stock. Even though I prefer Chipotle Mexican Grill (CMG, a spin-off of MCD) which also fell yesterday, I still find the stock much too expensive in terms of PE given the moderate growth estimate in 2013 and flat the following year.
My taste buds, on the other hand, don't give a damn about the purse strings and prefer CMG's premium burritos to MCD's paper mache fries.
Profit down 3.1% compared to the same quarter last year due to competition and currencies. Which translates into a share price drop of 4.5%.
I remain confident because the dollar had indeed appreciated too strongly and I bought MCD in particular because it is a bulwark against the structural weakness of the dollar. It is normal for this stock to behave badly when the greenback appreciates.
But the dollar has already corrected significantly downwards in recent months and there is no reason for it to appreciate again in the long term.
So I think you did well to take advantage of this discount of almost 5%!