MCD - Embedded Expectations Analysis - 2018 09 04
McDonald's Corporation (MCD:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 25.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about customer experience, growth outside of the value segment, and consumer price sensitivitySpecifically, management may be exaggerating the quality of their customer experience offerings, and their ability to establish initiatives to improve the experience. Additionally, they may also have concerns about the sustainability of success from their mobile app, and the price sensitivity of the consumer. Moreover, they may be concerned about their ability to sustain their recent growth pace, and to drive growth across multiple segments outside of their value offerings. Furthermore, they may have concerns about their ability to reduce fresh beef service times, and to continue taking share in International Lead markets. Also, they may lack confidence in their ability to deliver balanced growth in both average check and comparable guest count in the U.S., and to offset margin compression as delivery orders grow
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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