McDonald’s Corp., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	8,468,800)	6,177,400)	7,545,200)	4,730,500)	6,025,400)
Net noncash charges	1,251,100)	1,853,900)	1,142,100)	1,746,800)	1,798,200)
Changes in working capital items	(108,000)	(644,600)	454,200)	(212,100)	298,500)
Cash provided by operations	9,611,900)	7,386,700)	9,141,500)	6,265,200)	8,122,100)
Capital expenditures	(2,357,400)	(1,899,200)	(2,040,000)	(1,640,800)	(2,393,700)
Net short-term borrowings	212,800)	25,500)	15,100)	(893,100)	799,200)
Long-term financing issuances	5,221,100)	3,374,500)	1,154,400)	5,543,000)	4,499,000)
Long-term financing repayments	(2,441,100)	(2,202,400)	(2,240,000)	(2,411,700)	(2,061,900)
Free cash flow to equity (FCFE)	10,247,300)	6,685,100)	6,031,000)	6,862,600)	8,964,700)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to McDonald’s Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	McDonald’s Corp. FCFE increased from 2021 to 2022 and from 2022 to 2023.

McDonald’s Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	716,619,686
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	10,247,300)
FCFE per share	14.30
Current share price (P)	290.73
Valuation Ratio
P/FCFE	20.33
Benchmarks
P/FCFE, Competitors¹
Airbnb Inc.	21.72
Booking Holdings Inc.	19.63
Chipotle Mexican Grill Inc.	0.07
Starbucks Corp.	27.63
P/FCFE, Sector
Consumer Services	20.48
P/FCFE, Industry
Consumer Discretionary	38.45

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

McDonald’s Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	722,051,488	731,496,951	743,584,718	745,572,145	745,446,655
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	10,247,300)	6,685,100)	6,031,000)	6,862,600)	8,964,700)
FCFE per share³	14.19	9.14	8.11	9.20	12.03
Share price^1, 4	295.92	263.68	245.03	211.32	210.10
Valuation Ratio
P/FCFE⁵	20.85	28.85	30.21	22.96	17.47
Benchmarks
P/FCFE, Competitors⁶
Airbnb Inc.	25.72	24.76	54.32	99.90	—
Booking Holdings Inc.	15.89	11.52	69.03	37.59	15.41
Chipotle Mexican Grill Inc.	58.77	52.59	51.88	149.64	59.04
Starbucks Corp.	29.75	34.82	45.80	20.79	20.35
P/FCFE, Sector
Consumer Services	22.99	23.78	42.78	32.80	18.62
P/FCFE, Industry
Consumer Discretionary	30.84	36.19	82.92	32.04	28.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,247,300,000 ÷ 722,051,488 = 14.19

⁴ Closing price as at the filing date of McDonald’s Corp. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 295.92 ÷ 14.19 = 20.85

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	McDonald’s Corp. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.

McDonald’s Corp. (NYSE:MCD)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical