McDonald's - AI Stock Analysis

Analysis generated November 4, 2025

McDonald's Corporation, founded in 1940, is a leading global foodservice retailer which operates and franchises McDonald's restaurants. With over 39,000 locations in more than 100 countries, the brand has established itself as a household name. The business model benefits from high brand equity, operational efficiencies, and consistent global demand for its fast food offerings.

Fundamental Analysis

Revenue: For the last quarter, McDonald's reported a revenue of $6.84 billion. This represents a 14.91% increase compared to the previous quarter, highlighting solid growth. Year-over-year, revenue increased by 5.44%, indicating sustained expansion.

Net Income: Net income for the last quarter was $2.25 billion, reflecting a 20.61% increase from the previous quarter. Compared to the same quarter last year, net income rose by 11.42%, showcasing substantial profitability.

EBITDA: The company reported an EBITDA of $3.8 billion for the last quarter, marking a 17.64% increase compared to the previous quarter. Year-over-year, EBITDA grew by 10.64%, evidence of strong operational performance.

P/E Ratio: McDonald’s current P/E ratio stands at 25.4. This relatively high P/E ratio could be interpreted as a sign of overvaluation, potentially deterring value investors.

Additionally, the recent insider selling of company stock is a bearish signal, suggesting a potential lack of confidence from those closely acquainted with the company’s future prospects.

Technical Analysis

Today’s stock price is $298.30, representing a short-term decrease of 0.89% from a month ago, which could be cause for short-term concern. However, in a more extended time frame, the price has increased by 2.67% from a year ago, indicating a positive long-term trend.

The stock shows a bearish trend, exacerbated by a current SMA10 of 301.69, which has decreased from a previous SMA10 of 302.44. The RSI stands at 36.3, which falls into the neutral category but is approaching oversold territory. Combined, these signals indicate potential short-term weakness.

Alternative Data Analysis

Job Postings and Employee Sentiment: McDonald's has 44,797 open positions, which has remained stable over recent months, indicating a steady operational scale. Employee sentiment and business outlook are neutral, neither suggesting strong optimism nor overt pessimism.

Customer Acquisition: The company's customer acquisition metrics are promising. The McDonald's website has seen a 16% increase in visitors over the past few months, reaching an estimated 25 million visitors, a bullish signal. Similarly, McDonald’s mobile app downloads have risen by 142%, with an estimated 67,000 daily downloads, suggesting surging customer interest and engagement.

Customer Engagement: The company has maintained a steady social media presence, with 5.5 million Instagram followers and 4.7 million Twitter followers. These metrics have not seen significant fluctuations, implying stable customer engagement.

Additionally, AltIndex's AI score for McDonald’s is 40, which serves as a sell signal, merging insights from fundamental, technical, and alternative data analysis.

Conclusion

In conclusion, McDonald's displays robust fundamental indicators, with strong revenue, net income, and EBITDA growth. Despite a high P/E ratio signaling possible overvaluation, the company’s financial performance remains solid. Technically, the stock exhibits short-term bearish trends, with a decreasing SMA10 and neutral RSI approaching oversold levels.

Alternative data presents a mixed but cautiously optimistic picture. While job postings are stable, customer acquisition metrics are highly encouraging, notably the significant rise in mobile app downloads.

Balancing these factors, a recommendation might be to consider holding the stock in anticipation of long-term growth potential, despite the current bearish signals. Careful monitoring of insider activities and technical trends is advised.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.