McDonald's (MCD, Financial) shares experienced a significant decline today, with a drop of 5.17%. The stock movement can be attributed to the ongoing investigation into an E. coli outbreak in several US stores, prompting the company to halt the distribution of onions linked to the outbreak and remove the affected menu items in impacted states.
Currently, McDonald's is trading at a price of $298.41. The stock has seen a -16.28% change in value recently, reflecting broader concerns that may be impacting its market performance.
Despite today's downturn, McDonald's (MCD, Financial) maintains a robust market capitalization of $214.06 billion and a price-to-earnings (P/E) ratio of 26.11, positioning it competitively within the restaurant industry. The company boasts an Altman Z-Score of 5.21, indicating strong financial health. Additionally, its Beneish M-Score of -2.41 suggests that it is unlikely to be a financial manipulator. Operational efficiency appears to be improving, as evidenced by expanding operating margins.
However, investors should be wary of several medium-level warning signs, such as the stock's current price being close to a 10-year high, and a low dividend yield compared to historical norms. There is also a notable insider selling trend, with no insider buying in the last three months.
On the other hand, McDonald's (MCD, Financial) has three positive indicators: a robust Z-Score, an expanding operating margin, and a low probability of financial manipulation. Furthermore, the GF Value suggests that the stock is fairly valued with a GF Value of $300.89. For more detailed insights, refer to the GF Value page.
