MCD - Embedded Expectations Analysis - 2018 02 21
ï€ McDonald's Corporation (MCD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 29.9x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about their mobile app, demand, and cost savingsï€ Specifically, management is confident in their team's work in ending 2017 with 20,000 restaurants around the world offering mobile order and pay, and in their flagship Chicago restaurant blending modern design and their latest technology. Additionally, they are confident in their clean label McNuggets, and in the high take-up in markets like the U.K., Australia, and, increasingly, Canada. Furthermore, they are confident in their Signature range, and in their development of target savings of $500mn in G&A from their base of $2.6bn at the beginning of 2015
McDonald's franchises and operates McDonald's restaurants. The company's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, fries, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages. The company's restaurants in the United States and various international markets provide a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes. The restaurants also sells a variety of other products during limited-time promotions
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