Forecast Of The Day: McDonald’s Average Revenue Per Company Operated Restaurant

-6.75%
Downside
315
Market
294
Trefis
MCD: McDonald's logo
MCD
McDonald's

What?

McDonald’s (NYSE:MCD) Average Revenue Per Company Operated Restaurant in the U.S. declined from around $3.77 million in 2019 to about $3.65 million in 2020. We expect the metric to rise to over $3.8 million in 2021 and to almost $4 million by 2022.

Why?

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While sales were sluggish in 2020 due to the impact of Covid-19 lockdowns, we expect longer-term growth to be driven by new product introductions and growth of the delivery business.

So What?

We think the projected growth is largely priced into MCD stock. We value MCD at about $274 per share, about 2% ahead of the current market price.

See Our Complete Analysis For McDonald’s

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 Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 MCD Return 0% 0% 56%
 S&P 500 Return 0% 0% 79%
 Trefis MS Portfolio Return 0% 0% 292%

[1] Month-to-date and year-to-date as of 1/4/2022
[2] Cumulative total returns since 2018

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