Stock Research Report for MCD as of 7/27/11 - Chaikin Power Tools

Page 1

Mcdonalds Corp (MCD)

Price: $88.04

Industry: Food/Drug-Retail/Wholesale Chaikin Power Gauge Report | Generated: Wed Jul 27 11:30 EDT 2011 MCD Mcdonalds Corp

$88.04

Power Gauge Rating

MCD - Very Bullish TM

The Chaikin Power Gauge Rating for MCD is very bullish due to very positive expert opinions, strong earnings performance and bullish price/volume activity. Expert opinions about MCD are very positive which is evidenced by analysts revising earnings estimates upward and a very low short interest ratio.

Financial Metrics

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Bullish MCD Mcdonalds Corp

July 26, 2011

TM

Chaikin Sentiment Gauge for MCD is bullish. There is currently a significant positive sentiment within news stories concerning MCD.

News Sentiment :Positive

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Neutral

LT Debt/Equity Ratio

MCD's financial metrics are neutral. The company does not hold much long term debt and is carrying too much long term debt.

Price to Book Value

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

0.90

Price/Book

6.35

Return on Invest

20.7%

LT Debt/Equity

0.79

Price/Sales

3.79

Return on Equity

36.8%

Earnings Performance

TTM

Earnings Performance Rating

Bullish

Earnings Growth

Earnings Surprise

MCD's earnings performance has been strong. The company has a stable 5 year earnings trend and has a history of strong earnings growth.

Earnings Trend

The rank is based on consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

12/06

12/07

12/08

12/09

12/10

21,586.40

22,786.60

23,522.40

22,744.70

24,074.60

5.50%

5.56%

3.23%

-3.31%

5.85%

$2.83

$1.98

$3.76

$4.11

$4.58

38.73%

-30.04%

89.90%

9.31%

11.44%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$1.29

$1.43

+0.14

Quarterly EPS Yearly EPS Factor

$4.58

$5.13

+0.55

Actual EPS Growth

Est EPS Growth

Change

3.37%

9.07%

+5.70

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$1.28

$1.35

$0.07

1 Qtr Ago

$1.14

$1.15

$0.01

5.47

12/09

$0.87

$0.98

$1.15

$1.11

$4.11

0.88

12/10

$1.00

$1.13

$1.29

$1.16

$4.58

2 Qtr Ago

$1.16

$1.15

3 Qtr Ago

$1.24

$1.29

$-0.01

-0.86

12/11

$1.15

$1.35

-

-

-

$0.05

4.03

Fiscal Year End Month is December.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bullish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for MCD is bullish. MCD has a rising price trend and has outperformed the S&P 500 over 26 weeks.

Price Trend

The rank for MCD is based on its price strength versus the market, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether MCD is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

52 Week High

88.56

52 Week Low

69.38

% Change YTD Rel S&P 500

7.88%

Expert Opinions

Volume Activity Value

Factor

% Change Price - 4 Weeks

7.55%

Average Volume 20 Days

5,746,209

% Change Price - 24 Weeks

18.87%

Average Volume 90 Days

5,482,633

% Change Price - 4 Wks Rel to S&P

2.42%

% Change Price - 24 Wks Rel to S&P

16.98%

Value

Chaikin Money Flow Persistency

54%

Expert Opinions

Very Bullish

Earnings Estimate Revisions

Expert opinions about MCD are very positive. Analysts are raising their EPS estimates for MCD and shorting of MCD is low.

Short Interest

Insider Activity

The rank for MCD is based on analysts revising earnings estimates upward, a low short interest ratio, optimistic analyst opinions and price strength of the stock versus the Food/Drug-Retail/Wholesale industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

1.45 1.28 Current

Current FY

5.21

Analyst Recommendations

7 Days Ago % Change 1.42 1.27

+2.11% +0.79%

30 Days Ago % Change 5.11

0.10

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

18

2

18

2

Curr Yr

22

0

23

0

Next Qtr

11

2

12

2

Next Yr

20

0

21

0

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for MCD

MCD's Competitors in Food/Drug-Retail/Wholesale Company

Power Gauge

Rising costs overshadow McDonald's earnings; price hikes on horizon - Apr 22, 2011

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

MCD

3.37%

9.07%

20.56%

1.89

17.82

24,075

YUM

4.05%

11.10%

10.38%

1.69

20.28

11,343

DRI

5.85%

12.23%

6.35%

1.12

15.49

7,500

European growth sends McDonald's net up 11 percent - Apr 21, 2011

WEN

41.74%

17.40%

-0.07%

2.27

41.62

3,416

Restaurant Technologies resold - Apr 21, 2011

SBUX

11.43%

15.63%

9.79%

1.72

27.71

10,707

EAT

-8.19%

13.50%

5.84%

1.07

16.97

-

Feds file sexual harassment lawsuit against owner of 42 Wisconsin McDonald restaurants Apr 14, 2011

THI

11.64%

13.50%

24.17%

1.49

23.31

2,573

CBRL

-1.17%

10.75%

3.91%

1.13

11.82

2,404

Fewer people sought unemployment aid last week - Apr 21, 2011

Company Details

Company Profile

MCDONALDS CORP ONE MCDONALD`S PLZ DEPT 332 OAK BROOK, IL 60523 USA Phone: 6306233154 Fax: 630-623-5211 Website: http://http://www.mcdonalds.com Full Time Employees: 400,000 Sector: Retail/Wholesale

McDonald's Corporation develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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