MCD - Embedded Expectations Analysis - 2021 02 05
McDonald's Corporation (MCD:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 28.2x Uniform P/E. At these levels, the market has bullish expectations for the firm. However, management may be concerned about their delivery and drive-thru sales, the pace of the market recovery, and the launch of their orders platformSpecifically, management may lack confidence in their ability to sustain delivery sales improvements, drive monthly comp sales increases, and gain market share internationally through their drive-thru and delivery options. Moreover, they may have concerns about the launch of their orders platform, the impact of suppressed travel and tourism on sales in France, and the pace of the market recovery. Finally, management may lack confidence in their ability to execute brand and marketing investments, further secure expansion opportunities in China, and control their G&A expenses
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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