Equity valuation of McDonald's corporation

  • Luís Lopes (Student)

Student thesis: Master's Thesis


This thesis aims to conduct a comprehensive valuation of McDonald’s Corporation stocks as of December 31, 2024. The company, listed on the New York Stock Exchange (NYSE) and part of the S&P 500 index, is headquartered in Chicago, Illinois, USA. McDonald’s journey is marked by entrepreneurship, focused leadership, and notable achievements, personified by its founder Ray Kroc, who partnered with Richard and Maurice McDonald after the success of their remarkable restaurant in San Bernardino, California, and the innovative “Speedee Service System”, which featured 15-cent hamburgers. The analysis includes an examination of the industry, economic context, and a detailed financial assessment of the company. The primary valuation method employed is the Discounted Cash Flow (DCF), which involves discounting estimated future cash flows by the Weighted Average Cost of Capital (WACC) combined with the growth rate. The valuation results in a share price of $310,18, indicating a 4,61% upside potential compared to the value on December 31, 2023. Additionally, a sensitivity analysis and a comparison valuation using the Dividend Discount Model (DDM) were performed as well as a comparative analysis with an external valuation conducted by Evercore, offering readers additional insights into the methodology and outcomes of the valuation. Finally, an investment note has been issued (only for academic purposes), providing a Hold recommendation.
Date of Award8 May 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Carlos Tudela Martins (Supervisor)


  • Equity research
  • McDonald’s
  • Quick service restaurants (QSR)
  • DCF


  • Mestrado em Gestão Aplicada

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