Mcdonald´s equity research - story of the burger franchise´s giant

• Autor(a) principal: Guedj, Thomas
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/127262
• topic: Mcdonalds; Valuation; Enterprise value; Price target; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

McDonald’s Corporation’s stock has been a major component of the S&P 500 for decades. The company has been valued by many analysts. However, the company has been through important changes over the past years, and even more during the last year, due to the COVID-19 crisis. The equity research focuses on the McDonald’s Corporation stock price forecast as of December 31st2021. To determine the company’s enterprise value at this date, several analysis methods have been used, such as the discounted cashflow analysis and the multiple valuation analysis. After analyzing the historical data of the group, and looking at McDonald’s guidance and growth strategies, we were able to determine to reach a target price for December 31st2021. Our research led us to believe that the stock is undervalued by more than 10% of its actual price. We therefore recommend to buy stock as of today’s price ($214.58) considering a target price for December 31st2021 of $240.74, which correspond to an upside potential12.19%, showing the strong ness of the company’s latest development strategy “Accelerating the Arches”, which will consolidate its market share around the globe, especially in Western Europe and in the APAC region.