MCD - Embedded Expectations Analysis - 2021 10 11
McDonald's Corporation (MCD:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 29.2x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about marketing momentum, margin expansion, and dine-in capacity restrictions.Specifically, management may lack confidence in their ability to sustain digital sales growth, growth in Japan, China and the U.S., and margin expansion. In addition, they may have concerns about G&A cost management, persisting global dine-in capacity restrictions, and staffing challenges. Furthermore, management may lack confidence in their ability to maintain their marketing momentum, develop customer-centric innovations, and deliver a seamless omnichannel customer experience. Moreover, they may be exaggerating the potential of their global mobile app, MyMcDonald's Rewards program, and the Famous Orders platform in the long run.
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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